Ukrainian budget receives revenue from gambling industry in full - expert

Ukrainian budget receives revenue from gambling industry in full - expert

Ukrainian gambling operators pay all required taxes

The head of the Ukrainian Gambling Council Anton Kuchukhidze talked about the mistakes in the planning of budget revenues from gambling in 2020. According to the expert, analysts' forecasts and documented data differ greatly. This gives rise to speculations that the state is short of funds from legal gambling, while in fact all payments are made on time and in full.

 

As explained by the expert, the reason for the misunderstanding was a mistake: the profit from license fees was projected to be no more than 1.5 billion UAH per year, but for unknown reasons in the draft budget indicated a figure of 7.4 billion.

 

"Tax on gross gaming revenue was to bring the treasury about 5.6 million UAH, which would amount to about 10% of the total projected income of legal operators of gambling in 2021. However, given the fact that the market has just begun to function and many issues in its regulation have not yet been resolved, such assumptions looked too optimistic.

 

Bill 2713-d on the taxation of gambling has still not been approved. This strikes a blow to key players in the market. So far, the tax on gross gaming income is paid as three times the amount of the licence fee. The conflict relating to the approval of CRAIL members is also obvious - it needs to be resolved urgently. And until the current problems are solved, there is no point in predicting large profits for gambling operators," said Kuchukhidze.

He also noted that the lack of clearly defined rules of new casinos not on gamstop and gambling business in Ukraine prevents the attraction of foreign investment, which has a direct impact on the profitability of the market. The sooner this changes, the sooner the budget will receive from the industry more licensing and tax payments.

 

The expert explained that there are no technical errors in next year's draft, but the projected revenue can be considered underestimated. The authors of the document expect to receive UAH 763 million from the industry, while it is actually possible to generate about UAH 1-1.5 billion. Nevertheless there will be no misunderstanding and clearly overstated figures in the plans, as has happened this year.

 

Anton Kuchukhidze mentioned that all in all the year of legal work of operators in Ukraine the state received from the industry more than 30 million UAH - this amount includes not only license fees, but also all types of taxes, expenses for rent, services and so on. In the future, we can expect to increase all revenues - this requires elimination of administrative barriers and imperfections in gambling regulation in Ukraine, which clearly hinder attracting investments.