How the Gaming Industry Supports Ukraine: Taxes, Volunteer Programs, Financing of the Armed For

Well-coordinated activities in the rear are important for military victories at the front, — President of Ukraine Volodymyr Zelenskyy made such a statement in early March 2022, urging business to resume work as soon as possible.

The Help of the Gambling Businesses to Ukraine during the War

Ivan Rudy, head of the Ukrainian Gambling and Lottery Commission (UGLC), noted:

The negative consequences of Russia's actions are reflected in all areas of the economy. The gambling industry is no exception. Nevertheless, gaming companies continue to work for the benefit of our country.

The gambling industry supports Ukraine to the best of its ability:

Providing Employment

Because of the war, some land-based gambling establishments (casinos, betting shops) relocated to safer regions. The operators moved their permanent employees and expanded the staff. The creation of new jobs is also observed in the online gambling field.

Representatives of the iGaming industry are looking for:

• administrators;
• managers;
• marketers;
• programmers;
• testers.

Donations and Charitable Projects

Here are some initiatives of foreign operators:

1. The international poker room GGPoker announced that all funds collected from gaming tournaments from March 28, 2022, will be transferred to a special account of the National Bank of Ukraine. Further, the money will be transferred to the needs of the Armed Forces of Ukraine and the Troops, and humanitarian aid directly.
2. The lottery operator Allwyn (formerly Sazka Group) turned its office in Prague into a refugee centre. The company provided Ukrainian citizens with food, hygiene products, and other necessary things.
3. The Scandinavian provider ATG donated 2 million SEK to support Ukraine. The organisation Red Cross was responsible for the distribution of the money.

At the end of February, the international gambling market launched an initiative to raise £250,000 for Ukrainian refugees and internally displaced persons.

Exit from the Russian Market

After February 24, (UGLC) sent an appeal to international providers working in the iGaming field with a request to terminate any partnership agreements with the Russian Federation and leave the market of the aggressor country.

Many foreign companies responded to the calls. They liquidated their representative offices in Russia and suspended joint projects.

Financing of the Armed Forces

Gambling organisers allocate funds for the purchase of medicines, cars, equipment, and other gadgets for the needs of the army.

Such providers as Parimatch Tech, First Casino, and Slots City transferred over 60 million hryvnias to the Armed Forces of Ukraine. Other gambling operators have come up with similar initiatives.

Gambling companies carry out volunteer activities:

• they help refugees and internally displaced citizens;
• evacuate the population from combat areas;
• create aid funds for the Armed Forces of Ukraine and Territorial Defence Forces.

Prompt Payment of Taxes and Fees

The government expected to receive 1.2 billion hryvnias from the gambling sector in 2022. This figure was included in the state budget last year as royalties.

As of April 30, 2022, the total amount of incomings amounted to 670.7 million hryvnias ($22 million). The share of taxes paid in April is 29% (195.2 million hryvnias). Thus, the state plan was completed by over 50% in just four months. This amount does not include fees for charity and income from related industries.

Ivan Rudy noted:

The positive dynamics of revenues to the treasury testifies to the prompt restoration of the gaming sector. After the victory, gambling will become one of the leading sectors of the economy as an Eastern European iGaming hub.

Full-Fledged Work of Gambling Companies

Ivan Rudy highlighted the key trends in the entertainment industry:

Temporary Reduction of the Land-Based Sector

Consider statistical data on gaming companies operating in the country:

Indicator	At the beginning of 2022	At the end of May 2022
Number of licence holders (casinos, slot machine halls)	19	13
Gambling establishments	61 (8 casinos and 53 gaming clubs)	23 (5 casinos and 18 halls)
Geography of gambling venues’ operation	17 regions and Kyiv	12 regions and Kyiv

As you can see, before the start of the war, 61 gambling establishments operated in Ukraine. At the end of May, their number reduced to 23. Casinos and slot machine halls have reopened with a modified schedule following the curfew.

At the beginning of the year, the geography of gambling halls covered 17 regions. At the end of May, land-based establishments operate in 12 regions: Vinnytsia, Volyn, Lviv, Odesa, Rivne, and others.

The Development of the Online Field

The temporary closure of some land-based casinos has prompted gamers to bet in online clubs more.

Since the end of March 2022, the organisers have observed a steady growth in online traffic. It is converted into additional revenues to the state budget (as taxes on gambling activities and deductions from gamblers’ prizes).

Many operators have opened new directions on gambling sites:

• they added entertainment solutions from top software manufacturers;
• expanded catalogues with 3D slots, instant lotteries, and multiplayer fishing games;
• launched charity tournaments to raise funds for the needs of the Armed Forces of Ukraine;
• increased the number of slot machines that support demo mode.

The Main Things about the Work of the Ukrainian Gambling Industry during the War

• In February-April, domestic gambling companies transferred 670.7 million hryvnias to the state treasury. These are royalties, taxes, and deductions from winnings.
• Since the outbreak of hostilities, most land-based casinos and halls have moved to safer regions. Businesses continue to operate, create jobs, and support the Ukrainian economy.
• Domestic and foreign organisers of gambling activities create aid funds and charitable projects. The collected money is used for the needs of the Armed Forces of Ukraine and Territorial Defence Forces, refugees, and temporarily displaced citizens.

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