Cancellation of gaming licenses

As a law firm, we can confidently say that the gaming business is one of the most regulated areas in the world, and proper license management is critical to ensuring legality and stability in the industry.

In Ukraine, the process of canceling gambling licenses can be complex and requires a careful approach to all legal aspects at all stages.

In this article, together with specialized specialists of the Prikhodko and Partners Law Firm, we want to consider the key aspects of the cancellation of gambling licenses, the process and possible consequences for business.

We suggest starting with the concept of a gaming license

A gaming license is an official permit issued by an authorized state body that allows a company to carry out gaming activities. In Ukraine, gambling licenses are issued by the Commission for the Regulation of Gambling and Lotteries (KRAIL).

A license is not just an important, but a fundamental document that confirms the legality of activities in the field of gambling and ensures compliance with all regulatory requirements.

What can be the reasons for canceling a gaming license?

A gaming license can be revoked for a variety of reasons, including but not limited to the following:

• Violation of legislation: If the company violates the requirements of the legislation of Ukraine or the regulatory acts of KRAIL, this may be grounds for license cancellation. This includes violations of gambling rules, bookkeeping, storage and processing of personal data, as well as unauthorized use of a license.
• Financial violations: Failure to meet financial obligations, such as failure to pay license fees or taxes, may result in license revocation. KRAIL has the right to check the financial status of licensees and, in case of violations, to take appropriate measures.
• Non-submission of reporting or failure to submit the latter: Licensees are required to regularly submit reports on their activities. Failure to submit or submission of inaccurate reporting may be grounds for license revocation.
• Change of business conditions: If the company changes the conditions of its activity without the appropriate approval from KRAIL or without obtaining a new license, this may lead to cancellation.

Learn more about the procedure for canceling a gaming license

The procedure for canceling a gambling license in Ukraine includes several stages:

1. Official notification: KRAIL sends an official notification about the possible cancellation of the license to the licensee. This notification specifies specific violations and deadlines for their elimination.
2. The possibility of eliminating violations: The licensee has the opportunity to eliminate the detected violations within the established period. We recommend contacting specialists in advance so as not to waste extra time and better prepare a communication strategy. If the violations are not eliminated, KRAIL moves to the next stage.
3. Making a decision: If the violations are not eliminated, KRAIL makes a decision to cancel the license. The licensee can appeal this decision in court, but until the final decision is made, the license is considered revoked.
4. Notification and Publication: Information about the cancellation of the license is published on the official website of KRAIL, and can also be brought to the public’s attention through other mass media.
5. Closure of activity: Upon cancellation of the license, the company must cease its gaming activities and take steps to close all gaming platforms and operations.

Consequences of canceling a gaming license

The cancellation of a gaming license can have irreparable consequences for a business, including, but not limited to:

• Financial losses: Losing a license will necessarily lead to significant financial losses due to the cessation of business and the need to pay fines or compensation.
• Reputational risks: Canceling the license will negatively affect the company’s reputation, which can scare away potential customers and partners.
• Legal consequences: The company may be held legally liable for non-fulfillment of obligations under the license terms.
• Impact on business processes: Cancellation of the license will require a review and restructuring of business processes, which may make it difficult to resume operations.

How to avoid license cancellation?

In order to avoid cancellation of the gambling license, it is important to comply with all regulatory requirements and rules and enlist the support of specialists.

What we recommend:

1. Regularly check compliance of activities with current regulations and requirements.
2. Conduct internal audits to identify and eliminate possible violations.
3. Ensure timely payment of all license fees and taxes.
4. To interact with KRAIL and other regulatory bodies for timely resolution of possible problems.

Conclusion

Revoking a gaming license is a serious step that can have significant consequences for a financial business. However, the timely involvement of relevant specialists will protect the company from unwanted risks.

Timely response to violations and compliance with all regulatory requirements will help avoid negative consequences and ensure stable and legal activity of the company.

The legal company “Prikhodko and partners” is ready to provide you with expert support in matters related to gambling licenses.

We will help you deal with all legal aspects, reduce the risks of license cancellation and ensure that your business complies with all current requirements. Contact us for qualified advice and support.