Ukraine: The Cabinet of Ministers Adopted the Procedure for Functioning of the State Online Monitoring System in the Gambling Sector

On 16 February 2024, the Cabinet of Ministers of Ukraine adopted the Procedure for Functioning of the State Online Monitoring System (the “Regulation“), creating a regulatory framework for the forthcoming system launch.

The State Online Monitoring System (the “Monitoring System”) is a computer system that monitors the activities of gambling operators, including licencing and technical standards, compliance, payments, withdrawals and other related transactions.

The Regulation determines the rules of functioning and operation of the Monitoring System, the list of its users, the scope of access rights for different users of the Monitoring System, and the procedure for its interaction with gambling operators and the Commission for Regulation of Gambling and Lotteries (the “Commission“). The Monitoring System will be accessible to the Commission, the Ministry of Finance, the State Tax Service, and the State Financial Monitoring Service.

Key functions of the Monitoring System include:

• 24-hour (real-time) sending and receiving of data on each betting transaction, bet refunds, withdrawals of winnings, etc.;
• Remote shutdown of gambling equipment;
• Interaction with registers of gambling operators;
• Protection of players’ personal data.

Gambling operators will be obliged to connect their gambling equipment to the Monitoring System within six months of its launch.

The future launch of the Monitoring System will significantly lower licence fees for specific gambling activities. Fees for a licence on betting activities, online casino gambling activities and the annual fee for a slot machine, which are currently being paid in triple amounts, will be reduced to the regular rates.

The Regulation introduces significant regulatory changes for gambling operators and automates processes for interacting with state authorities. The Monitoring System will also enable the tax authorities to efficiently administrate the payment of all taxes and duties, investigate and prevent tax evasion.