Development of The Gaming Industry in Ukraine
Budget revenues from gambling can grow significantly in 2022. But for this, the state needs to solve very important issues for the gambling market related to the taxation of the industry, and then new companies will rush to Ukraine.
2021 was the first full year of operation for legal gambling after an 11-year ban. The state and local budgets received hundreds of millions of hryvnias from gambling operators. The country’s treasury received more than UAH 1.7 billion from royalties alone, with average expectations of UAH 1.2-1.5 billion annually. In total, taking into account the related industries, the budgets of different levels received several tens of billions of hryvnias, which is much better than it was in 2020.
Gambling helps other businesses to develop
Gambling companies do not exist in a vacuum. To create a good place for games, they need a lot of quality services that other business areas provide – there are many related contracts for marketing, tailoring, event directions, equipment purchases, repairs, etc. Michael Boettcher’s Shangri La in Kyiv always recommends interesting places to visit, and most of the guests use these recommendations during their holidays.
According to various estimates, more than UAH 30 billion was generated through interaction with related areas. The volumes will increase if the tax bill 2713-d is adopted, Western giants who are ready to enter the Ukrainian market are waiting for it. Without this document, companies cannot draw up a business plan. Accordingly, if there is no business plan, how will they enter the market?
Gambling projects are becoming more and more popular and profitable every year. In total, 34 slot halls and six casinos are currently operating in Ukraine, three of which are located in Kyiv.
Based on the report of the American consulting company Grand View Research, the volume of income from the gambling business will increase by 11.5% annually. Such analytical forecasts, according to experts, give confidence in attracting investments in gambling projects and make them the most profitable among all types of investments.
If law 2713-d is adopted and the tax burden on business is balanced, this will enable business to develop. This means that revenues to the budget will increase. After all, a growing business will bring much more in the future, since it will not only be direct taxes in the form of licenses, but also a proportional increase in budget revenues from other taxes, which is directly related to the development and increase in business turnover.
Support for sports and culture
After the legalization of the gambling market, its participants were able to not only work without fear, but also come to grips with supporting all kinds of events. First of all, it concerns sports, as well as culture and medicine, noted Darren Keane from Shangri La.
Legal organizers of gambling enter into many sponsorship contracts in different areas. This brings its own positives: on the one hand, it increases the social responsibility of the gambling business, and on the other hand, it helps to develop e-sports, support cultural events, such as concerts, etc.
A lot of operators are involved in charity, they have separate funds that work on various topics – children’s sports or just helping children, greening the planet, etc. This is one direction, the second is social protection, strengthening the policy of responsibility to support gambling addicts, for example, call centers, clarification, etc.