Ukraine’s gambling problem

Gambling was legalized in Ukraine in 2020 after being banned in 2009. In the first two months of 2024, the industry paid Hr 2.2 billion ($55.6 million) in taxes, and Hr 10.4 billion ($263.3 million) in 2023, according to Danylo Hetmantsev, the chairman of the parliamentary Finance Committee.

Meanwhile, gambling business leaders in Ukraine multiplied their fortunes by 28 times in 2023, earning around $1.4 billion last year, according to Opendatabot.

Despite these numbers, many gambling companies still find lots of ways to pay less taxes, such as through the use of miscoding, or entering incorrect category details when inputting the payment into banking systems to conceal the true source of the payment.

Senior economist at the Kyiv-based Center for Economic Research Yuri Gaidai doubts the feasibility of banning gambling outright for members of the military. One solution according to Gaidai could be the introduction of an online monitoring system with reliable verification of the player’s identity, although it could increase security risks for the military.

Gaidai also said that it is, however, crucial that the government find a way to “systematically restrict gambling advertising and effectively prosecute violations to reduce the spread of addiction.”

Origin: The Kyiv Independent.