Published: 12.08.2019, 12:53
2 min read
For nearly a decade, gambling activities have been outlawed in Ukraine. However, the situation is set to change with the head of state issuing signal of reintroducing gambling in the land. Ukraine President Volodymyr Zelensky made a strong statement on his plan to make gambling legal once again.
The President was speaking in Turkey, where he said that the move would spur economic growth. Gambling activities were banned in Ukraine in 2009, but a comeback in the betting industry will be a massive boost for the tourism sector.
The reintroduction of gambling is mainly targeting casinos in five-star hotels. Legalizing gambling in the nation will not only benefit Ukraine’s economy but the entire Black Sea region. Russian News Agency TASS quoted the President saying that the planned legislation will “stimulate the development of tourism in the cluster.”
The Ukrainian leader was addressing Ukraine-Turkey business forum in Istanbul on Thursday where he made the landmark statement. Surprisingly, Zelensky does not see Turkey as a competitor but view them as a partner. The Ukrainian President further told the Turkish investors that promoting the industry jointly was the only way to market the tourism brand in the region.
Pros of Legal Gambling in Ukraine
Even though gambling has been illegal in Ukraine for the past ten years, betting operators who do not pay taxes are still involved. Without taxes, it’s evident that gambling activities have not been helping the nation to generate any revenue.
As taxes from gambling can be seen as one of the few advantages of the industry for the state, some countries are strict when it comes to gathering taxes from gambling services. For example, allegedly, Kenya betting operators owe more than $500 million in taxes and the authorities there have seized gambling licenses of the major companies.
The Ukraine Finance Ministry is estimating that gambling in casinos can net approximately US$200 million worth of revenue each year. However, other experts in economics see legal gambling having the capability of doubling the ministry’s projection.
For the ten years that gambling activities were outlawed, experts approximate that the country missed the opportunity to bag colossal amount via tax. According to Alexander Yaroslavsky, the founder of the Development Construction Holding (DCH), the country would’ve raised €1.7 billion in the past five years alone.
The founder of DCH admitted lacking “time to gamble,” but was quick to point out that other nations have allowed gaming for gainful purposes. He blamed the corrupt officials for pocketing the money from operators that would have been the revenue. According to him, legal gambling would have helped to obtain the €105 million that the stalled construction of takeoff strip requires in Dnipro.
