KRAIL receives 667 license applications in Ukraine in 2022, rakes in $31m in revenue
Author:
Muhammad Gregory
In a report that was recently published by the Gambling and Lotteries Regulatory Commission of Ukraine (KRAIL), it was disclosed that 667 iGaming license applications were sent to the regulator in 2022. A little over 600 licenses were issued by the Ukrainian regulator to the operators who intended to expand their operations by getting into the Ukrainian gambling market.
iGaming accounted for close to $32m in revenue for Ukraine in 2022. ?Mediamodifier/Unsplash
Out of the 667 applications, KRAIL green-flagged 603 gaming licenses in 2022. 593 out of those were licenses to operate slot machines. Four licenses were to organize and execute bookmaking activities, while three licenses each were for online casinos and the provision of gambling services. 63 other applications were not considered due to errors in the submitted paperwork. 60 out of those applications were for slot machines, two were for gambling activities in slot machine halls, and one was to provide gambling services. 33 applications were for permits that would approve new gambling premises complying with the gambling law. Out of these 33 applications, 17 permits were issued, while 16 were turned down because of errors on their respective applications.
The gambling industry is monitored and regulated very strictly in the nation. The process of obtaining a gambling license from KRAIL is tedious. Ensuring the license does not get suspended is also a major task. KRAIL has never hesitated in issuing fines to licensed operators that have not followed the gambling laws in the country. The regulator enters the new year with the same approach.
The process begins with an application to the provincial gaming commission. Applicants must provide detailed information about their proposed business, including the type of gambling they intend to offer, their financial stability, and their experience in the industry. Once the application is submitted, it will be reviewed by the commission to ensure that all requirements are met. If the application is approved, the applicant will then be required to obtain a license from KRAIL.
KRAIL’s licensing process includes a background check of the applicant, as well as an evaluation of their financial stability and ability to operate a gambling business. Applicants must also demonstrate that they have adequate security measures in place to protect customers’ personal information and money. Once an applicant has obtained a license from KRAIL, they will be able to operate their gambling business in the province. However, they will be subject to ongoing monitoring by KRAIL to ensure that they comply with all regulations.
Gambling sector performing well even under martial law
The Russia-Ukraine war has impacted many sectors of the market. However, the gambling sector is still flourishing under tough and testing circumstances. In its report, KRAIL confirmed that about half of the licenses that were issued in 2022 were approved when martial law was in place.
As the applications keep flowing in, they are studied meticulously before receiving their gambling-related licenses from KRAIL. Looking at the numbers for 2022, the Ukrainian regulator is rightly expecting the gambling sector graph to move upwards steadily. The Authority will definitely expect higher numbers in 2023.
Gambling Authority contributed about $31 million to the State Budget
Earlier this week, it was revealed that KRAIL directed a sum of UAH1.166 billion ($31.7 million) to the Ukrainian State Budget. Chairman of KRAIL, Ivan Rudohy, always has contrived procedures that encourage licensed operators in Ukraine to pay their license fees on time. This helps the state increase net income from the flourishing gambling sector during challenging times. Rudohy spoke about the regulator’s aim and its efforts to bolster the Ukrainian economy.
“The business does not give up: with adaptation to permanent shutdowns, measures to relocate gambling establishments, but with its significant contribution to the victory of Ukraine, resumes work. The commission continues to promote the adaptation of gambling organizers to today’s conditions and the improvement of the investment climate in the country in order to strengthen the economic front of Ukraine.”
