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Saturday, May 30, 2015

Law of Ukraine "On Prohibition of Gambling Business in Ukraine"

Date of entry into force:
June 25, 2009

(Abstract)

The Law introduces limitations on gambling business in Ukraine.

Article 1 of the Law provides definitions of the main terms used in the Law. Gambling business is an activity aimed at organizing and conducting gambling in casinos, slot machines, in bookmaker offices and in electronic (virtual) casinos, carried out by organizers of gambling to receive profit.

According to Article 1 of the Law, gambling includes any game that requires the player to make a bet that enables them to receive a prize, and the result of which depends on chance partially or completely.
Gambling does not include:
·         organizing and holding lotteries;
·         organizing and holding creative competitions, sporting events, etc., regardless of whether their conditions include a prize in monetary or property form;
·         pool, bowling and other games that do not involve awarding of prizes to the winner;
·         games on "crane machine" type of gaming machines (two-coordinate machines), in which the player receives exclusively material prizes (toys, candy, etc.);
·         free draws that are part of advertising (promotion) of a certain product, service, trademark, brands of goods services, types or directions of business entities or commercial programs, with prizes in a monetary or property form;
·         draws in form of competitions (games, quizzes), on conditions of free participation and awarding of money or property prizes to the winner based on the best display of personal knowledge and skill;
·         free draws carried out for purposes of entertainment, charity or education.


According to Article 2 of the Law, gambling business and participation in gambling is forbidden in Ukraine,

Business entities that organize and conduct gambling in Ukraine are subject to financial liability in form of a fine in the amount of eight thousand of minimum wages, with confiscation of gambling equipment, while the profit (revenue) from such gambling is subject to transfer to the State Budget of Ukraine. The above sanctions are applied by decision of the court, resulting from a claim filed by the state tax service bodies.



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