7/15/2022»»Friday

Poker Kiev

7/15/2022

Gambling in Ukraine is currently restricted by law by way of the Ukrainian parliament’s passing of “On Prohibition of Gambling Business in Ukraine” in 2009. (1) Any placing of bets in which the outcome is found to be determined by chance in whole or in part is considered gambling under the law, and is banned, except where permitted by law.

So what was done here is to specify which types of gambling are permitted, and aside from allowing things like lotteries and gambling for charity, it also set out “gambling zones” where gambling is allowed, which includes hotels rated at least 4 stars and with 100 rooms or more, certain entertainment and cultural complexes, and cruise ships.

  1. These poker tables are one of the most frequented parts of the casinos since poker is really quite popular with the Ukrainians. Some of the casinos in Kiev even have eleven poker tables, while others have tables not less than two. Poker is also popular in Ukraine. Here, they can be played in casinos as well as over the Internet.
  2. Poker Tournaments in Kiev At this page you will be able to find all the poker tournaments in Kiev that will take place this week as well as future series announces. You will also be able to find all the relevant information about the tournaments, for instance: schedule, residence, entrance fee, time of its beginning, starting stacks, blind.

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So it’s not that gambling was prohibited in Ukraine, as the title of the law suggests, it’s more like it was regulated, and at least part of the rationale for this new regulation was the fire they had in a gambling hall immediately preceding the law in which 9 people lost their lives.

A lot of the unapproved gambling operators didn’t exactly go away quietly though and since then there have been hundreds of arrests resulting in gambling operators being shut down and their equipment seized. This is the target of this new law, to ensure that whatever gambling occurs in Ukraine meets with government approval and to look to shut down the gambling which does not.

The Crimea region was also deemed to be an approved gambling zone although this area is now under dispute as the Russians have effectively taken it over, and have established it as a gambling zone of their own. So this area isn’t really subject to Ukrainian law for all intents and purposes at present.

Playing Poker In Ukraine

When the law passed, people claimed that poker wasn’t gambling and therefore not subject to the new laws, since poker was considered a sport by the Ukrainian government, but the government quickly stepped in and removed poker being designated a sport so it would be instead viewed as gambling.

However, the poker industry in Ukraine didn’t take this lying down, and they disputed the government ruling, taking it all the way to the Ukrainian Supreme Court, who ended up ruling that poker was indeed a sport and therefore was distinct from the gambling with Ukrainian laws prohibit. (2)

So this resulted in a resurgence of poker clubs in Ukraine, who now offer dozens of places that players can play poker at, throughout the country, especially in the Kiev area which is a hotbed of poker and features the largest poker room in Eastern Europe (3).

In spite of the fact that some people have interpreted the Supreme Court’s decision to only deem tournament poker as a sport and not cash poker, both forms of poker are offered now in Ukraine, and cash poker here is even more popular and even more widely offered, even though there is plenty of tournament poker offered as well.

Online Gambling in Ukraine

The government claims that the new law applies equally to both land based and online gambling, and they have stated that online businesses offering gambling should be shut down alongside their land based counterparts. (4)

This presumably would mean that if a business set up an internet gambling site in Ukraine the government would seek to shut them down, although this really has little practical effect, since there are a lot of online sites that operate outside the country and therefore aren’t subject to Ukrainian law at all.

This did cause Ukrainian online gambling operators to move their servers outside the country to avoid the law, as the original law did provide this loophole, but it was closed in 2011 and any Ukrainian business found to be involved in online gambling is subject to being charged. (5)

In spite of poker now being declared a sport by the courts though, considering it to not consist of “gambling” in Ukraine, and therefore not illegal, there are no online poker sites in Ukraine, although players have no trouble playing at the large selection of online rooms located outside the country, and some even offer play in the Ukrainian language.

It remains to be seen if any Ukrainian operators will look to set up poker rooms within the country but keep in mind that the biggest reason why operators do this is to comply with regulation, meaning that they are told they have to do that by the government, and it’s simply easier to set up shop wherever it would make the most sense to based upon tax and other laws.

The Future Of Online Poker in Ukraine

So if Ukrainian businesses were looking to set up a poker room it would make more sense for them to run it from another location anyway, as they have been forced to do with their other gambling ventures, like sports betting and casino, which are not considered to be sports in Ukraine by anyone and would be illegal.

Given that poker sites offer other forms of gambling as well on their sites, and there is obviously money to be made off these other forms of betting even among poker players, it really wouldn’t make sense for them to set up in Ukraine regardless of what the law may be toward poker right now.

The bottom line though is that Ukrainians can play all the live poker they want right now at one of the poker clubs in the country, and they can also play as much online poker they want as well, at any poker site they wish, poker is considered a sport and therefore legal, and there are no regulations either causing the online poker sites they wish to play at to have to pay higher tax rates, and they are located in low tax rate areas, so this is an ideal situation right now.

In time, Ukrainian officials may look at regulating online poker and perhaps even online gambling in general, but this is not on the horizon right now, and that suits players just fine.

References:

(1) Gambling in Ukraine

(2) Online Poker Sites in Ukraine

(3) Poker in the Ukraine

(4) Ban On Gambling in Ukraine Applies to Internet Casinos As Well

(5) Online Gambling Law in Ukraine

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Gambling in Ukraine was illegal between 2009 and 2020.[1]

Parliament outlawed gambling in 2009[2] after a May 2009 fire in a gambling hall in Dnipropetrovsk that killed nine people.[3] The Ukrainian parliament passed the law 'On Prohibition of Gambling Business in Ukraine' (Gambling Ban Law) banning gambling business and any participation in gambling in Ukraine on May 15. The President of UkraineViktor Yushchenko signed the law on June 23 and on June 25 it came into force.[2] The Law On Prohibition of Gambling Business in Ukraine also applied to internet casinos, it did not apply to lotteries.[1][4]

Poker In Kiev

Parliament legalised gambling again on 14 July 2020.[1] Albeit with regulations and age restrictions (minimum age of 22).[1]

2009 Ukrainian ban on gambling[edit]

After a May 2009 fire in a gambling hall in Dnipropetrovsk that killed nine people several parts of society demanded a ban on gambling.[5] The Ukrainian parliament passed the law 'On Prohibition of Gambling Business in Ukraine' (Gambling Ban Law) banning gambling business and any participation in gambling in Ukraine on May 15. The President of UkraineViktor Yushchenko signed the law on June 23 and on June 25 it came into force.[2] The Law On Prohibition of Gambling Business in Ukraine also applied to internet casinos.[4] It did not apply to lotteries.[1]

On 6 January 2010 the Cabinet of Ministers excluded gambling from the list of economic activities, which can be licensed.[6] This is read in the Cabinet of Ministers resolution No.14 of Jan. 6.

The law gave the definition of gambling. It stated that any game requiring the player to make a bet that enables them to receive a prize and the result of which depends on chance partially or completely, is considered gambling.[7] Thus, all kinds of gambling, including slot machines, bookmaking, online gambling, interactive gambling became illegal. The law also provided a list of activities that are not considered gambling. These included lotteries, creative competitions and sporting events, pool, bowling, free draws carried for purposes of advertising, charity, promotion and education, etc.[7]

According to the Gambling Ban Law, both organization of gambling business and gambling were illegal. The law provided that any organizer or gambling should be fined, while the gambling equipment and the revenue received was subject to transfer to the budget of the state.[7]Despite the prohibition, by July 20, 2009 over 500 facts of illegal operation of gambling establishments had been exposed in Ukraine which resulted in the confiscation of 6,000 slot machines and around 216 criminal charges.[8]

However, it did not lead to cessation of the gambling business, but it led to its criminalization.[original research?] The police began to cover gambling business for reward.[citation needed]

According to Prime Minister of UkraineYulia Tymoshenko Ukraine had an unusually high number of gambling halls (over 100,000), which 'take the last money from families, which don't have much, and which corrupt young Ukrainians.'[9]

2010 Draft Law[edit]

According to the Gambling Ban Law, the new Draft Law 'On Gambling Organization and Maintenance of Gambling Activities in the Special Gambling Zones' should have been created within 3 months after the Ban Law took effect. However, because of the unstable political situation in Ukraine this draft wasn't introduced until 2010.

On November 3, 2010 the Draft Law was made public. This law provided for the establishment of the state-owned National Gambling Operator that would control the organization and regulation of gambling activities and also issue licenses for all private gambling operators.[10]

On September 29, 2015 in Kiev, the first in the history of gambling Congress Ukraine, Ukrainian Gaming Congress was held.

Gaming zones[edit]

A significant provision of the Draft Law is the creation of so-called gaming zones. All gambling activities with the exception of state cash lotteries should move to these gaming zones. The list of gaming zones includes:

  • hotels with at least 4 star rating and 100 rooms
  • cultural and entertainment complexes, nonresidential premises, Ukraine-registered ships that can accommodate a casino with a gambling hall of at least 500 sq. meters

Additionally, the territory of the Autonomous Republic of the Crimea and resort towns located within its boundaries are also proclaimed a special gambling zone.[10]

Gambling establishments can't be opened within less than 500 m proximity of the educational and government institutions and healthcare facilities.The main reasons for choosing such locations were the intentions of the Ukrainian government to:

1) limit the possibilities of the vulnerable part of the population to play games of chance

2) get profit from the EURO 12 that will be held in Ukraine and will inevitably attract many solvent tourists.

To be admitted to the casino, gamblers will have to comply with the dress code and pass the strict face control.[11][12]

Requirements[edit]

The Draft Law was developed with the intention of creating a properly regulated gambling market in Ukraine. For this reason the law provides stringent requirements for potential gambling business owners. A very serious financial background is one of them. The cost of a one-time fee for obtaining a gambling license will amount to $5 million. The same amount of money gambling business operator should have in the form of a registered capital. The license is issued for a term of 7 years, so the license fee can be paid in parts within the period of license activity. The size of the fee is determined by the Act on Gambling Businesses.[13]

Poker[edit]

Poker tournaments in Ukraine flourished after the ban as a way of circumventing the country's gambling ban. Hence on December 31, 2009 the Justice Ministry of Ukraine rescinded its decision of July 1, 2009 which had included poker on the list of sports recognized in Ukraine.[14] When parliament legalised gambling again on 14 July 2020 poker tournaments were also reallowed.[1] Albeit with regulations and age restrictions.[1]

TV and radio[edit]

Poker Kiwami 2

Ukrainian PresidentViktor Yanukovych signed a law banning of paid interactive quizzes on TV and radio on 6 March 2012 (except for channels with limited access).[15]

2020 Law[edit]

On 14 July 2020 president Volodymyr Zelenskyy signed the Ukrainian law “On State Regulation of Organising and Conducting Gambling”. Both local and foreign investors will have access to the market, only legal entities registered in Ukraine may become gambling operators. Gambling operators shall not be controlled by a Russian resident nor have a Russian person as a shareholder or Ultimate Beneficial Owner (UBO). Neither should they have shareholders registered in countries currently blacklisted by the Financial Action Task Force (FATF), in other words North Korea and Iran.In addition, a gambling operator must have a share capital of at least USD 1.1 million (UAH 30.7 million/GBP 906,000/EUR 1.0 million). They must open a deposit account or obtain a guarantee from a Ukrainian bank for USD 1.2 million, and they must have a dot.ua domain name.[16]

The state budget already this year includes proceeds from the legalization of 'gambling' in 4.5 billion hryvnia (164 million USD). This is 118 hryvnia (4,3 USD) per each Ukrainian. Gambling establishments cannot be advertised in the media and programs for Ukrainian minors, in places where entertainment and sports events are held. The outdoor advertising is allowed from 21:00 to 7:00.[17]

At the stage of passing through the Verkhovna Rada, Boris Baum, the developer of the document and the chief adviser of the President's Office on gambling issues, was appointed to the post of chairman of the regulator. Another person headed the commission. On October 22, the government, at the suggestion of Minister Oleg Nemchinov, approved Ivan Rudoy in this position. There is practically no information about his previous activities in the public space. Presenting this candidacy, the minister said that Rudy has experience and knowledge in the field of management, international relations and finance.The names of two of the six members of the commission soon became known. The first is Eugene Hetman, coordinator of international projects. The second is Elena Vodolazhko, a member of the Ukrainian Bar Association, an employee of Rinat Akhmetov's DTEK Service LLC. A total of 378 applications were submitted to the competition, and 42 people were invited for an interview. An additional selection of candidates is planned to close 4 vacancies.[18]

Kiev Poker Tournament


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References[edit]

Poker Kicker

  1. ^ abcdefgUkraine's parliament legalizes gambling, UNIAN (14 July 2020)
  2. ^ abcBYT's Korolevska: Crackdown on gambling business by February, Kyiv Post (December 24, 2009)
  3. ^Update: Fire in gambling hall kills nine people in Dnipropetrovsk, Kyiv Post (May 7, 2009)
  4. ^ abTurchynov: Ban on gambling in Ukraine applies to Internet casinos as well, Kyiv Post (July 18, 2009)
  5. ^Update: Fire in gambling hall kills nine people in Dnipropetrovsk, Kyiv Post (May 7, 2009)
  6. ^Cabinet: Gambling business unlikely to be licensed, Kyiv Post (January 12, 2010)
  7. ^ abcLaw of Ukraine 'On Prohibition of Gambling Business in Ukraine'
  8. ^Governmental checks expose over 500 facts of illegal operation of gambling establishments, Kyiv Post (July 20, 2009)
  9. ^Tymoshenko: Ukraine's 'Las Vegas' can only be built with prior permission of local communities, Kyiv Post (May 18, 2009)
  10. ^ ab'Draft Law on Gambling Games'(PDF). Archived from the original(PDF) on 2012-04-25. Retrieved 2011-11-22.
  11. ^'Kolesnikov promised new rules for gambling in April'. Archived from the original on 2011-11-05. Retrieved 2011-11-22.
  12. ^'State releases the gambling industry to freedom, but with conditions'. Archived from the original on 2012-04-25. Retrieved 2011-11-22.
  13. ^Gambling Market in Ukraine
  14. ^Justice Ministry removes poker from list of recognized sports, Kyiv Post (December 31, 2009)
  15. ^Yanukovych signs law on ban on paid interactive quizzes on TV and radio, Kyiv Post (6 March 2012)
  16. ^Ukraine: gambling (re-)legalised, Sayenko Kharenko (12 August 2020)
  17. ^What you need to know about legalization of gambling in Ukraine, 112.UA News Agency (27 July 2020)
  18. ^[shorturl.at/fjxAG History of gambling in Ukraine], Casino.ru (2020)
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