RECEIVING LICENSE ON GAMBLING IN UKRAINE

More and more states are introducing requirements for obtaining national gambling licenses in order to increase local taxes, finance national programs for health care, social sphere, and environmental projects, and increase the degree of protection of users’ rights.

WITH typing validity the law of Ukraine “About state regulation activity on the organization and conduct of gambling” (hereinafter – the Law) and Ukraine joined the pool of such states.

According to the provisions of the Law, a game of chance is any game, The condition of participation is the player’s placing a bet, which gives the right to receive a winning (prize), the probability of receiving and the amount of which depends entirely or partially on chance, as well as the knowledge and skill of the player ;

The Gambling and Lottery Regulation Commission (hereinafter – KRAIL) is the central body of the executive power, which ensures state regulation of activities in the field of organization and conduct of gambling games and lotteries. It is this body that reviews and verifies information submitted by applicants regarding obtaining licenses/permits and their compliance with license conditions; makes decisions on issuing and canceling licenses; approves license conditions and the list of gaming equipment subject to certification; carries out state supervision of the gambling market and in the field of lotteries; applies sanctions to the organizers of gambling games and other powers in accordance with the Law and Regulations of the Commission for the Regulation of Gambling Games and Lotteries.

In accordance with provisions of the law, KRAIL gives out the following species licenses:

• on proceedings activity with organizations and carrying out gamblers Igor in gambling casino establishments/casino games on the Internet;
• on proceedings activity with organizations and carrying out bookmaker activities;
• on proceedings activity with organizations and carrying out gamblers Igor in hall slot machines;
• on proceedings activity with organizations and carrying out gamblers Igor in poker in Internet networks ;
• on playing table and/or on playing table with ring roulettes;
• on bookmaker items;
• on playing automaton;
• on proceedings activity with granting services in sphere gambling ;
• on proceedings activity with carrying out bet totalizer on racetracks;
• investment.

It should be noted that sports poker, lotteries, playing on machines of the “crane machine” type, in which the prize is exclusively material things, playing billiards, bowling, and other games that are played without the player receiving a prize, do not belong to gambling and do not need to obtain a license to carry out such activities.

General requirements and limitations to licensees.

The law establishes general rules and requirements for organizers of gambling games and special ones defined by licensing requirements regarding:

• rights property (use) premises and permission about their conformity to the requirements established by the Law;
• certification gambling equipment;
• reasons for using online systems organizing gamblers’ games;
• information about the brand, what is planned use;
• transparency structures property acquirer licenses;
• an audit report confirming the completeness of the formation of the authorized capital and documents confirming the sources of origin of funds;
• business reputation, residency, absence of criminal record managers, main accountant, owners of significant participation, and ultimate beneficiaries;
• compliance norms FATF concerning the prevention of legalization income and financing terrorism, the norms of the Law of Ukraine “On Sanctions” regarding license holders and related persons;
• compliance organizational, qualifying, financial and economic, and other requirements stipulated by the relevant license conditions;
• compliance politician “know his own user” and “laundering of finance” (KYC/AML).

Gambling organizers cannot be: banks and other financial institutions; enterprises, institutions, and organizations included in the Register of non-profit institutions and organizations; legal entities which, by court decision, are prohibited from organizing and conducting gambling games.

The organizer of gambling games is obliged to issue a target bank deposit or a bank guarantee for the payment of winnings in the amount of 7,200 minimum wage.

Let’s consider in more detail the nuances and the procedure for obtaining a license using the example of licensing activities for the organization and conduct of gambling in casino gambling establishments.

Activities related to the organization and conduct of gambling in casino gambling establishments are carried out on the basis of the following types of licenses:

• license on proceedings activity with organizations and carrying out gamblers Igor in casino gambling establishments;
• license on playing table and/or license on playing table with ring roulettes;
• license on playing automaton;
• investment

KRAIL makes a decision on issuing or refusing to issue a license within 15 working days from the date of acceptance of the application and documents from the applicant and after receiving a document confirming the payment of the fee for the first year of license validity.

A license for a gambling table and/or for a gambling table with a roulette wheel, for a slot machine, is issued for the term of the license for the organization and conduct of gambling activities in casino gambling establishments or an investment license.

The organization and conduct of gambling in casino gambling establishments is allowed only in the territory of special gambling zones:

• territory hotels categories “five stars” with quantity rooms not Less 150 – for cities Kyiv;
• Hotel territory categories “five stars” and/or “four stars” from quantity rooms not Less than 100;
• for other populated items;
• the territory of a country recreation complex located outside the city and with a total area of at least 10,000 square meters, with mandatory equipment of a five-star hotel;
• special territorial gambling zone, created by decision Cabinet Ministers of Ukraine.

License on proceedings activity with organizations and carrying out gamblers Igor in gambling casino establishments are issued for a period of 5 years.

The license fee for the city of Kyiv is 60,000 minimum wages, in other settlements or outside of them – 30,000 minimum wages.

Annual pay by each license on the playing table is:

• 175 minimal wages fee by one playing table with ring roulettes;
• 90 minimum wages for one gaming table that is not a roulette ring gaming table.

The annual fee for a slot machine license is 6 minimum wages per slot machine.

An investment license for organizing and conducting casino gambling activities is issued on the condition that the applicant builds a five-star hotel complex with the appropriate number of rooms depending on the city.

The investment license appears free, and the term for her actions is 10 years.

Summarizing specified above, you can draw conclusions that process activity licensing in the field of organizing and conducting gambling is complex, requiring substantial investments and thorough preparation.

Experienced fintech lawyers of the company “Prikhodko and Partners” are always ready to provide professional legal advice, develop an individual strategy, help you choose the necessary type of gambling license, prepare the necessary package of documents, and provide full legal support for the procedure of obtaining a license.