The Ministry of Digital Affairs proposes to ban offline bookmakers and change the tax on winnings

Author:
Olha Bereziuk
Date:

The Ministry of Digital Affairs proposes to ban offline bookmakers and change the tax on winnings.

This is stated in two draft laws prepared by the ministry.

They want to make changes to the Law on Gambling and the Tax Code. The first bill proposes to change the approach to regulating the gambling business — instead of formal supervision, introduce constant digital control, in particular:

  • organizers should monitor gaming behavior and respond to signs of addiction;
  • players will be able to set their own limits and self-restrictions;
  • A clear gradation of punishments will be introduced: for minor violations — a fine, for serious ones — license revocation.

As for the changes to the Tax Code, the main innovation proposed by the Ministry of Digital Affairs is a tax only on "net winnings". That is, they propose to tax the difference between the winnings and the playerʼs contribution, not the entire payout.

They also want to eliminate double taxation for gambling operators and establish a single tax of 18%. Currently, gambling businesses pay both gambling income tax and income tax, which effectively means that the same amount is taxed twice.

Among other suggestions:

  • ban cash bets — will only use chips, tokens, or electronic units to track money.
  • close bookmakers — bets will only be possible online;
  • create a single register of gambling organizers and connect it to the state online monitoring system;
  • simplify licensing: "one license — one gambling establishment".

The situation with the gambling business in Ukraine

In July 2020, the Verkhovna Rada legalized gambling in Ukraine. The law legalizes the activities of casinos, bookmakers, including online, slot machine halls, and the organization of online poker. The parliament included roulette, card games, dice, and slot machines as casino gambling.

In September 2020, the parliament created the Commission for the Regulation of Gambling and Lotteries (CRGL) — a state regulator that is responsible for licensing and regulating the gambling sector in Ukraine.

In 2023, Ukrainians spent almost UAH 400 million daily in online casinos, or over 12 billion per month, as Economic Truth reported with reference to the National Bank. The military is most often hit by this industry, who then suffer from gambling addiction.

After this publication, lively discussions began in society about the problem of gambling, in particular among the military. An electronic petition appeared to restrict the operation of online casinos during martial law in Ukraine, which gathered the necessary votes for its consideration in a few hours.

On April 20, 2024, President Volodymyr Zelensky signed a decree restricting the operation of online casinos. In May of the same year, the Cabinet of Ministers completely banned the advertising of gambling.

On March 25, 2025, the government decided to liquidate the Commission for the Regulation of Gambling and Lotteries (CRGL), and its powers were transferred to the state agency PlayCity.

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