President of Ukraine Volodymyr Zelenskyy signed the law "On state regulation of activities for the organization and conduct of gambling." As reported on the website of the head of state, gambling establishments of various types can be located in hotels that belong to categories from three to five stars, as well as in special gaming zones.
“The law provides for the issuance of a license for the organization and conduct of gambling, which gives the right to use only one brand of the organizer of gambling. It also provides for the issuance of a free investment license for 10 years for investors who are building a new five-star hotel, or if the investment project is approved by the Cabinet of Ministers of Ukraine, ”the message says.
In dollar terms, the cost of a license to open a slot machine hall in Ukraine will be about $ 250 thousand, to establish a casino - $ 1 million (in Kiev - $ 2 million), to launch an online casino - $ 200 thousand. A new state body, the Commission, will be in charge of issuing licenses. on the regulation of the gambling market.
The authorized capital of a company that enters the Ukrainian gambling market must be at least UAH 30 million (a little over $ 1 million). According to the law signed by Zelensky, persons over 21 are allowed to visit gambling establishments. Also, restrictions are imposed on advertising of gambling.
As a reminder, the gambling business in Ukraine, including online casinos, was officially banned in 2009. However, underground establishments are widespread in the country. All these years, the only legal gambling hobby in Ukraine was the lottery.
"Exceptional cynicism"
Zelensky came up with the idea of developing the gambling business in Ukraine even before his election as president. So, in April last year, in an interview with RBC-Ukraine, the future head of state called for the creation in the country of an analogue of American Las Vegas, where gambling and prostitution would be allowed. The showman also supported the idea of legalizing the sale of marijuana.
However, since coming to power, Zelensky's views on the organization of the gambling industry in the country have changed somewhat. In particular, he abandoned the idea of building a Ukrainian Las Vegas. In early August 2019, the president announced that casinos would only open in five-star hotels. As Zelensky explained, such a measure should support the development of tourism.
At the end of September last year, the Ukrainian government approved a bill on the legalization of the gambling business, then the document was submitted to the Verkhovna Rada. As the press service of the country's cabinet of ministers said, "gambling will be held exclusively on the territory of hotels."
- President of Ukraine Volodymyr Zelenskyy during a press marathon
- © president.gov.ua
Initially, it was supposed to allow the opening of full-fledged casinos only on the territory of five-star hotels, but in 2020 amendments were made to the document, allowing the operation of such establishments in four-star hotels.
In October last year, during a press marathon, Zelensky noted that the legalization of the gambling business would create opportunities for the development of the hotel sector and eliminate illegal establishments. At the same time, the head of state promised to use the proceeds from the sale of licenses to finance sports.
“We have five-star hotels on the market, but they are very small. There are no opportunities to make a casino yet. We need a test of how people will fight for these licenses. We want to build hotels, ”Zelensky told reporters.
Let us remind you that the Verkhovna Rada adopted the law on the legalization of the gambling business in mid-July. At the end of the same month, the document was signed by the Speaker of the Parliament Dmitry Razumkov.
A categorical opponent of this initiative is the Opposition Platform - For Life (OLLP) party. The deputies note that back in the mid-2000s, Ukraine turned into a zone of cheap recreation for citizens of European states, which only contributed to the development of prostitution.
“In addition to what we already have, we also need to make the gambling business available today, turning Ukraine into a cesspool, so that expensive casinos can be organized in five-star hotels, where foreigners could feel at ease, perceiving Ukraine as a third world country,” he said. to journalists on July 1, 2020, Chairman of the Political Council of the OPSL Viktor Medvedchuk.
According to him, lobbying structures, including the American billionaire George Soros, are behind the promotion of the law. Medvedchuk called the legalization of the gambling business "exceptional cynicism" amid the fall in industrial production in the country.
The MP said that in the first four months of 2020, compared to the same period in 2019, the volume of production of Ukrainian engineering products collapsed by 19.7%, coal mining fell by 21.7%, and metal production - by 14.9%.
- An underground casino in one of the restaurants in the Shevchenko district of Kiev
- © SBU
Another MP from the PLO, Natalia Korolevskaya, who initiated the gambling business ban in 2009, expressed concern about the negative social effect of the opening of casinos and slot machine halls in Ukraine.
“Its entry into force will not bring anything good for our country - the number of gambling addicts will increase, in the hope of easy profit, people will take the last values out of their homes, children will quickly become dependent on the game, and millions of Ukrainian families will simply collapse,” the Royal Press quotes - HLE service.
"The halls will not be empty"
Experts believe that by deciding to legalize the gambling business, Zelensky primarily expects to patch up budget holes, perceiving this commercial sector as a source of relatively quick and easy money.
“The opening of slot machine halls and casinos is evidence that Ukraine has exhausted its internal resources to support industry and high-tech production. This requires foreign investment, but no one is going to invest in a country where the level of corruption is overwhelming and there is a war going on, "political analyst Denis Denisov said in an interview with RT.
In this context, the expert considers the legalization of the gambling business in Ukraine partly as a compulsory measure. According to Denisov's forecast, Kiev will continue to take unpopular and morally ambiguous steps in order to replenish the treasury, a significant part of which is spent on paying off external debts and maintaining the army.
“The situation in the Ukrainian economy is really very difficult, practically hopeless. Therefore, the authorities deliberately go to the legalization and liberalization of spheres that can bring at least some income, ”Denisov stated.
In a commentary to RT, the head of the Center for Systems Analysis and Forecasting, Rostislav Ischenko, called Zelensky's idea to make significant profit from the legalization of the gambling segment as a failure. From the point of view of an expert, in order to attract foreign gamers and tourists, Ukraine must first of all create a high-quality infrastructure.
“When the first casino in Monte Carlo was opened as a source of income, the local dynasty invested quite a lot in this project. Investments went to advertising, infrastructure and related entertainment industry. Zelensky, having signed a decree on the legalization of the gambling business, expects that money will fall from the sky, ”says Ishchenko.
The expert believes that Ukraine will not be able to “lure” large investors and wealthy Europeans who are used to spending time in casinos in Western countries. According to Ishchenko, it is highly likely that the legalized gambling sector will be popular only among Ukrainians themselves.
“The halls with slot machines will not be empty, and to a certain extent, the gaming industry in Ukraine will be developed. However, it will be more targeted at the poor. As before the ban, local businessmen will make money on gambling addiction and the misfortune that gambling addiction will bring to millions of Ukrainian families, ”Ishchenko summed up.