On 13 August 2020, the Law "On State Regulation of Activities on Organising and Conducting Gambling" (the "Law") entered into force. The Law introduces complex regulation of gambling and provides for, inter alia, for the following.

1. Only a legal entity being resident in Ukraine can obtain a license under the Law.

2. Land-based and online casinos, online poker, betting online and offline, as well as slot machines halls are allowed.

3. Casinos are allowed only in hotels that meet a number of requirements (in Kyiv – in 5 star hotels with at least 150 rooms, in other cities – in 4 star and 5 star hotels with 100 or more rooms), in suburban recreation complexes with an area of at least 10 thousand square meters (with a 5 star hotel), as well as on the territory of "special gaming zones", which shall be created in Ukrainian regions requiring economic incentives.

4. Online casino operators are required to have a.UA domain name and website, through which the casino operator conducts activities, registered in a special newly created register.

5. Licenses are issued for online poker only. Offline poker can be performed as a sport poker, which is not deemed gambling, or in a casino as one of gambling games.

6. Bookmaking may be carried out through betting shops on the basis of a single license, both online and offline. At the same time, it is possible to place betting shops in 3 - 5 star hotels with a number of rooms exceeding 50 in Kyiv and exceeding 25 in other cities. The Law allows to obtain a license to conduct a bet of tote at the racetrack, only in one betting shop, if it is located on the territory of such a racetrack.

7. Slot machines may be placed in a casino under the casino license and in a hall of slot machines on the basis of a separate license. One license entitles to install 250 slot machines. They are prohibited in cities with less than 10 thousand inhabitants. It is not allowed to open halls closer than 500 m to educational institutions. It is forbidden to use slot machines manufactured before 2019.

8. Terms and approximate cost of licenses in USD (converted from UAH at the current exchange rate) are the following:

• casino: 5 years / 10.4 million for a casino in Kyiv / 5.2 million for a casino in another city + annually: 30.2 thousand for a table with roulette / 15.5 thousand for a table without roulette / 1 thousand for a slot machine;
• online casino: 5 years / 1.1 million;
• bookmaking: 5 years / 5.2 million + 5.2 thousand annually for each betting shop;
• slot machines hall: 5 years / 1.3 million + 1 thousand annually for each slot machine;
• online poker: 5 years / 863.5 thousand.

9. The Law introduces an investment casino license, which can be obtained for 10 years by building a 5 star hotel with  a minimum of 200 rooms in Kyiv or 150 rooms in another city. In this case, the  license will be granted for free.

10. Until the launch of the State Online Monitoring System (special software for monitoring the gambling market in realtime mode) license fees for online casinos, bookmaking and slot machines are charged in triplicate. This system shall be launched in two years. The gambling operators will have another six months to connect their equipment to the system.

For further information, please contact Asters' Partner Vadym Samoilenko and Associate Kateryna Rekiianova.