The collection of taxes on gambling activities helps deliver a valuable stream of revenue for governments across the globe. Such tax revenue can be dedicated toward educational programs or contribute to the treatment, support and research of problem gambling. Besides the land-based gambling sector, amid the popularity of online gambling activities, iGaming operators also contribute significantly to tax revenue.
Now, judging by reports from local media outlets, Ukraine considers reinstating its 18% tax on turnover, applicable to online gambling and betting operators. Reportedly, the chair of the country’s parliamentary Finance Committee, Danylo Hetmantsev, confirmed the return of the turnover tax on Thursday.
The announcement reportedly came via Telegram and it is expected to help raise valuable revenue. The chair of the Finance Committee reportedly said that the reinstatement of the 18% tax on the turnover of online casino operators is expected to bring some UAH 1.5 billion or $41 million in revenue for a fiscal year.
Yaroslav Zheleznyak, a Ukrainian MP, issued further details regarding the 18% tax rate. He explained that this 18% tax will target the turnover of the online casino and betting companies, not their revenue. It is yet to be seen how licensed operators in the country will respond to the 18% online gambling tax.
Only recently, the leading iGaming, sports and esports betting operator, GG.Bet, announced it expanded its presence to Ukraine. This week, the company revealed that it secured the necessary licenses to launch its offering in the country, complementing its European growth after its recent launch in the United Kingdom.
Elsewhere in Ukraine, law enforcement recently raided eight illegal gambling dens. Early in June, raids within the Kyiv region were conducted, the Economic Security Bureau of Ukraine (ESBU) revealed.
The raids resulted in the shutdown of eight illegal gambling locations. In the process, there was seized gambling equipment along with UAH 100,000 ($2,700). The operation was conducted by the ESBU, in collaboration with Kyiv’s regional department of Internal Security and the National Police of Ukraine.