Governments worldwide gain substantial revenue through taxes collected from gambling activities. These tax proceeds can augment educational campaigns or fund endeavours for the treatment, study, and support of individuals battling gambling addiction. The substantial proliferation of online gambling has led to iGaming operators becoming significant contributors to this tax revenue, in addition to the traditional land-based gambling platforms.
Local news agencies in Ukraine have reported that the country is contemplating reinstating its 18% turnover tax, applicable to online gambling and betting firms. The chairperson of the nation’s parliamentary Finance Committee, Danylo Hetmantsev, confirmed the potential comeback of the turnover tax on a recent Thursday.
Public revenue generation is the purported objective behind this tax reinstatement, as revealed through a Telegram announcement. The aforementioned committee’s chairperson stated that a return of the 18% turnover tax on online gambling operators might generate around UAH 1.5 billion or $41 million in annual revenue, according to estimates.
Ukrainian MP Yaroslav Zheleznyak clarified more about this proposed 18% tax rate, stating it would be levied on the turnover of online gambling and betting enterprises, rather than their profits. The reaction of licensed operators to this taxation plan will undoubtedly be noteworthy.
Simultaneously, the top-tier iGaming, sports, and esports betting operator, GG.Bet, disclosed its business expansion plans within Ukraine. The firm announced that it has acquired the requisite licenses to commence its operations in Ukraine, complementing its recent launch in the United Kingdom and paving the way for its European growth strategy.
Law enforcement agencies in Ukraine have been carrying out subsequent crackdowns on unlawful betting dens. Earlier in June, raids directed in the Kyiv region led to the closure of eight prohibited betting sites as divulged by the Economic Security Bureau of Ukraine (ESBU).
The operation facilitated by the ESBU, in coordination with the regional department of Internal Security and the National Police of Ukraine, resulted in the seizure of gambling equipment and UAH 100,000 ($2,700). Such actions highlight the continued attempts towards regulating the gambling arena within the country.
