The opening of the Ukrainian market is well under way. All forms of gambling were officially legalized in August 2020, when President Volodymyr Zelensky signed the Gambling Act into law.
Operator Speisiks LLC, the company which operates the Cosmolot brand, was awarded the first Ukrainian online casino licence by the Commission for Regulation of Gambling and Lotteries (GRGL) in February 2021
Next up, Parimatch, a company rooted in the Ukraine received a licence for online gambling, followed by a licence for sport betting in March.
As is often the case when markets begin to regulate, there has been some confusion, and more clarity is needed from the GRGL regarding the criteria and technical requirements. For example, in the first tranche of applicants, 15 other operators were rejected without consideration. As of now, there has been no guidance provided regarding system or technical requirements which makes the selection process quite opaque.
Regardless, the market is moving forward, and the current licence fee is set at €1.2M and renewable every five years. The fee is expected to triple within the first 30 months of the official market launch. A flat tax rate of 10% has also been enacted for all gambling activities.
So, for operators considering a move into this market, now is the time to start moving in, because the first market entrants are usually the biggest beneficiaries when it comes to capturing market share, and earning player loyalty.
Finnplay is the Nordic’s leading iGaming platform provider, with specialities in compliance and localization. Finnplay made a strategic decision in 2021 to move into the Ukrainian market, and is now actively searching for operators to support in their bids to get licenced. Finnplay has a sterling reputation in the regulated markets of Europe and can greatly minimize the stresses placed on operators regarding technical compliance – especially with so many currently unknown factors. Finnplay’s developers and compliancy team are specialized in adapting their technology to conform to local requirements. Operators wishing to get into the Ukrainian market early could significantly reduce their compliance risks and costs by partnering with a technology specialist like Finnplay to handle the regulatory requirements as they arrive.
For more information, contact Finnplay today.