Online Gambling

in Ukraine

June 2015

Contents
Online Gambling in Ukraine Today.slide 3
Consumer protection.slide 5
Money Laundering and Terrorism..slide 6
Legislative Reform.slide 7
Regulation and Enforcement...slide 8
UGC Technical Overview...slide 9
Regulatory Specialists.slide 11
Contacts.slide 12

Online Gambling in Ukraine Today

Prohibition introduced in 2009 drove online gambling underground
and failed to resolve the social issues targeted by the government
at the time
The Ukrainian online gambling market is now operated outside of
Ukraine with little to no consequences for its operators
All illegal proceeds of gambling earned by offshore operators in
Ukraine represent an outflow of hard currency from the country
and raise no taxes for the state budget
The Ukrainian government has no means to monitor or quantify
online gambling in Ukraine
We estimate the potential size of the online gambling market to be
circa USD 850 million per annum with potential annual tax
revenues of USD 200 million

Online Gambling in Ukraine Today

Ukrainian nationals have access to, among others, the following
online gambling service providers:

Eurogrand
Winner
William Hill
Europa
Unibet
Titan
Tropez
Betway

Casino X
Azartplay
Best for Play
D-Jackpot
Slot Voyager
Gaminator Slots
Bellini
21Nova

Advertising of gambling sites is allowed on the internet, press and

television despite prohibition, leaving the government exposed
to accusations of double standards.

Consumer Protection
Currently Ukrainian nationals are able to pay foreign online
gaming sites via:

Paypal
Yandex
Webmoney
Western Union
Visa/Mastercard

The absence of a Ukrainian regulator for such activity and the

inability of law enforcement to prevent such transactions, leaves
many Ukrainians susceptible to FRAUD AND IDENTITY THEFT
Ukrainians have NO access to information educating consumers
about the effects of gambling addiction

Money Laundering and Terrorism

The proceeds of illegal gambling activity is a known source of
money laundering and financing for terrorist groups as noted in
the following letter from the FBI in 2013:

Legislative Reform
Legalization of online gambling through licensed service providers
Creation of Ukrainian Gaming Commission (UGC) to monitor and
control the whole online game market
Introduction of a unified platform for all licensed online gaming
companies with real-time overview by the state treasury
Introduction of strict Know Your Customer compliance guidelines
for licensed service providers to prevent money laundering and
other illegal financial transactions
Introduction of tax rate for online gaming activities, including a
requirement for all licensed service providers to pay for all
historic revenues generated out of Ukraine
Introduction to the Criminal Code of significant fines for foreign
and local entities providing gambling services without a license

Regulation and Enforcement

Creation of a team of specialists within UGC, identifying IP
addresses of unlicensed online gambling sites
Automatic blocking of IP addresses of unlicensed online gambling
sites
Identification of illegal advertising of unlicensed gaming sites with
powers to prosecute the source of such advertising
Notification by UGC to payment providers used for gambling
using illegal sites
International prosecution of entities running servers for conducting
unlicensed gambling in Ukraine
Local prosecution of payment providers, companies and
individuals engaging in unlicensed online gambling

UGC technical overview

Ministry of Finance
* UGC Ukrainian Gaming Commission

UGC Electronic System

UGC technical overview

The UGC Electronic system will oversee each licensee that is
operating within the boarders of the Ukraine. Each approved
licensee will have to connect there servers to the UGC system.
An API (Application Programme Interface) will allow UGC to
collect and store the various types of information in real time to
allow monitoring of daily, weekly and monthly activities of each
licensed operator ensuring that all taxes are collected monthly.
The electronic system is highly configurable and provides a full
range of data for detail analytic and reports.
All of the UGC electronic system is hosted in Ukraine. Technical
support team is located in Ukraine.

10

Regulatory Specialists
Tactic Finance has put together an international team of
specialists able to obtain expedited judgements in multiple
jurisdictions to:
1) close gaming sources targeting the Ukraine illegally and
without authorization
2) prosecute parties involved in the illegal marketing in Ukraine
of unauthorized gambling sites
3) freeze revenues generated from unauthorized online
gambling activities in Ukraine held offshore

11

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Contacts

Contact us
Tactic Finance
36-B, Shchorsa Street
III floor, office 94
Kiev, 01133
Ukraine
Our lines are open from Monday to Friday from 9am to 6pm Kiev time:
+380 44 569-17-24
+380 44 569-17-23