Закон 2285-Д на английском языке

THE UKRAINIAN LAW

on the State Regulation of the Activities

Related to the Organisation and Conduct of Gambling Games

This Law sets out a legal framework for the state regulation of business activities in the organisation and conduct of gambling games in Ukraine and sets out legal, economic, social and organisational conditions for gambling operations.

SECTION I

GENERAL PROVISIONS

Article 1. Definitions

1. The terms used in this Law have the following meanings:

1) “gambling game” means any game, a condition of which is that a player must place a bet entitling him to a prize, the odds and amount of which depend, fully or partially, on chance and such player’s knowledge and skills;

2) “casino gambling games” means cylindrical games (roulette), card games (including a poker game), dice games, and gaming machine games;

3) “betting activities” means the business of organising and conducting wagers (bookmaker wagers and totalisator wagers) at betting outlets and/or on the Internet;

4) “bookmaker wager” means a wager made between a player (players) and a betting organiser;

5) “betting outlet” means separate premises or a part of premises located at the same address and where bets are accepted and/or prizes are paid out in respect of wagers (bookmaker wagers and totalisator wagers);

6) “gambling organiser brand” means a set of qualitative features that enable anyone to distinguish between gambling organisers; such as trade and service marks, trade dress, name, trade name, logo and other intellectual properties;

7) “gambling organiser website” means one or more webpages through which a gambling organiser carries on its activities on the Internet, using only one gambling organiser brand;

8) “prize” means money, property and/or property rights to be paid out (given) to a player if he wins a gambling game in accordance with the published rules of such gambling game;

9) “payout” means a financial transaction of paying (refunding) a player a bet made in a wager as provided for by wagering (bookmaker wager and totalisator wager) rules;

10) “responsible play” means the basic principle of organising and conducting gambling games, under which gambling organisers shall take measures to prevent and mitigate adverse consequences of an individual participating in a gambling game, as well as measures aimed at arranging self-restrictions and self-control for players;

11) “prize percentage” means such average percentage of the amount received from players which is returned to a player as a prize in the event of one million of games conducted;

12) “virtual game” means a game being a set of virtual events created through gaming equipment or mechanical and technical means, the outcome of which is unknown beforehand and cannot be influenced by a player or a gambling organiser;

13) “random number generator” means any such component (device or software module, including a remote one) of gaming machines and online systems of gambling organisers which generates a sequence of unrelated numbers and ensures the random nature of a prize when gambling games are conducted by means of the said systems and/or gaming equipment;

14) “card game” means a game the outcome of which is determined depending on a certain combination of playing cards, in accordance with the rules of such gambling game;

15) “dice game” means a game the outcome of which is determined depending on a certain combination of numbers (symbols or signs) appearing on the dice, in accordance with the rules of such gambling game. For the purposes of this Law, “dice” should be understood as any thing that is used to play a dice game and contains relevant symbols or signs;

16) “gaming machine game” means a gambling game that is conducted using a gaming machine and in which the chance and amount of a prize are determined by a random number generator;

17) “player” means a capable individual who has attained the age of 21 years at the time of gambling participation and is not on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling and whose gambling participation is voluntary;

18) “gaming equipment” means an online system of a gambling organiser, a gaming table (including a roulette wheel gaming table), a gaming machine or any other special mechanical, electrical, electronic or other technical equipment or device that is designed and/or used for organising and/or conducting gambling games;

19) “gaming machine” means special technical equipment that is designed and/or used for conducting gambling games the outcome of which is determined without the involvement of employees of a gambling organiser or other persons and solely through a random number generator. If a gaming machine allows two or more players to play a game at the same time, such gaming machine shall, for licensing purposes, be considered two or more gaming machines, as the case may be, depending on the number of players who can play gambling games on it;

20) “gaming venue” means a casino gaming venue, gaming machine venue or betting outlet;

21) “casino gaming venue” means one or more non-residential premises (or a part thereof) that are located at the same address and where casino gambling games are conducted and catering services may be provided;

22) “gaming parlour” means separate premises that are a component of a gaming venue and designated solely for hosting gaming tables and/or roulette wheel gaming tables and/or gaming machines and for conducting gambling games;

23) “gaming table” means a specially equipped table with one playing area where, regardless of the number of players, only one gambling game session can be conducted, during which a gambling organiser acts as a player through its representatives or as an observer. If a gaming table has two or more workstations for employees of a gambling organiser, which increases by twofold or more the capacity of conducting a game at such gaming table, such gaming equipment shall, for licensing purposes, be considered two or more gaming tables, as the case may be;

24) “roulette wheel gaming table” means a specially equipped table with one playing area and a device that is activated by a gambling organiser’s representative and where only one cylindrical game (roulette) session with one or more players can be conducted;

25) “State Online Monitoring System” means a special-purpose software and hardware system designed for ensuring the monitoring of the business operations of gambling organisers and ensuring compliance with licence conditions and technical standards; the receiving and transmitting of information online from (to) relevant gaming equipment via the Internet or other communication channels, the collection, processing, accumulation and registration of information regarding bets accepted, prizes paid out, payouts and other transactions made in connection with the organisation and conduct of gambling games, ensuring the protection of information from loss, theft, distortion, corruption, unauthorised actions related to its destruction, modification, copying etc, from unauthorised access via the Internet, and for ensuring the principle of responsible play;

26) “jackpot” means a top prize that is provided for by gambling game rules and the amount of which is fixed by a gambling organiser or is determined by a gambling organiser, depending on the total numbers of bets put by players;

27) “gaming machine venue” means one or more non-residential premises (or a part thereof) that are located at the same address and where the licensed business of organising and conducting gambling games is carried on using gaming machines;

28) “gaming hryvnia substitute” means a tangible item used to play gambling games, such as a coin-like token, chip or electronic card, as well as an electronic money substitute, that contains information about its face value, allows a bet to be made in a gambling game and is purchased in exchange for money at a gambling organiser’s cash desk and, once a gambling game is finished, must be returned to a cash desk for it to be exchanged for an appropriate cash equivalent;

29) “player identification card” means a tangible or electronic item that contains information enabling a gambling organiser’s employee to determine the age of, and to identify, the bearer. An identification card shall be issued in the form and manner determined by a gambling organiser;

30) “racecourse” means a complex of facilities for testing trotter and race horses and conducting horse sports competitions, which has closed circular running and racing tracks (a circle), a building with a viewing stand and a judge's tower;

31) “cash desk” means a place where gaming hryvnia substitutes are sold (issued) and exchanged, gaming accounts are topped up, bets are accepted from players, prizes are paid out (given) as a result of a gambling game, and other acts are done;

32) “player customer account” means a part of a gambling organiser’s online system that provides a player with complete information about his acts, agreements made with that gambling organiser, and a balance of electronic money substitutes, and contains information required to identify such player;

33) “line of events” a list of events on a potential outcome of which wagers may be made, which list is determined by a gambling organiser;

34) “licence” means a record made in the Uniform Register of Legal Entities, Private Entrepreneurs and Public Organisations in respect of a licensing authority’s decision authorising a business entity to carry out the licensable activity specified therein and/or in respect of a licensing authority’s decision authorising a business entity to use gaming equipment or a betting outlet subject to a licence being obtained;

35) “mobile (software) application” (hereinafter, a “mobile application”) means software that is designed to operate on mobile devices and is used to carry out the activities of organising and conducting gambling games via an online system;

36) “online system for organising and conducting gambling games (online system)” means a set of technical means, software and hardware that ensures (including on the Internet) that gambling games are organised and conducted, data on bets accepted are collected, recorded and registered, prizes are determined, recorded and paid out and other transactions are made in connection with the organisation and conduct of gambling games, and the relevant information is stored;

37) “gambling organiser” means a Ukrainian resident entity that is licensed to carry out an activity (specified in the licence) of organising and conducting gambling games in compliance with this Law;

38) “gaming machine gambling organiser” means a Ukrainian resident entity that is licensed to carry out the activities of organising and conducting gambling games in gaming machine venues in accordance with this Law;

39) “Internet casino gambling organiser” means a Ukrainian resident entity that is licensed to carry out the activities of organising and conducting casino gambling games on the Internet in accordance with this Law;

40) “betting organiser” means a Ukrainian resident entity that is licensed to carry out the activities of organising and conducting betting activities at betting outlets and/or on the Internet in accordance with this Law;

41) “Internet poker organiser” means a Ukrainian resident entity that is licensed to carry out the activities of organising and conducting poker games on the Internet (online poker) in accordance with this Law;

42) “casino organiser” means a Ukrainian resident entity that is licensed to carry out the business of organising and conducting gambling games in a casino gaming venue in accordance with this Law;

43) “wager” means a gambling game that involves making a wager (in accordance with wagering rules approved by a betting organiser) between a player (players) and such betting organiser (bookmaker wager) or between each of two or more players (totalisator wager) on the outcome of one or more events that is unknown beforehand and cannot be influenced by a player (players) and/or such gambling organiser;

44) “totalisator wager” means a wager made between each of the players and organised by a betting organiser;

45) “event” means a sports, cultural, public and political, entertainment or competition event or an episode thereof or any other real event or an episode thereof the outcome of which is unknown beforehand and cannot be influenced by a player or a gambling organiser;

46) “poker” means a card game with incomplete information, the outcome of which is determined depending on a certain combination of playing cards, in accordance with the rules of such gambling game;

47) “gambling organiser rules” means a local regulation approved by a gambling organiser to set out (for each of the activities referred to in paragraph one of Article 2 of this Law) a detailed description of procedures and aspects for carrying out such activities of that gambling organiser (including procedures for how the outcome of gambling games will be determined and prize payouts will be calculated and made, and the terms of interaction between such gambling organiser and players and other persons) and such other terms and conditions as provided for by law;

48) “software directly used in the organisation and conduct of gambling games” means software designed to collect, record and register data on bets accepted, to determine, record and pay prizes, to create databases and to determine the outcome of a gambling game, including to calculate a prize amount. Such software includes, without limitation, a random number generator and any software that is a component and/or part of an online system of a gambling organiser;

49) “Register of Gaming Machine Gambling Organisers” means a public database that contains information on gaming machine gambling organisers, a list of their gaming parlours, and information on the gaming machines installed in such gaming machine venues (with the addresses specified);

50) “Register of Casino Gambling Organisers” means a public database that contains information on casino organisers and a list of their casino gaming venues (with the addresses specified);

51) “Register of Internet Casino Gambling Organisers” means a public database that contains information on Internet casino gambling organisers (with the addresses specified) and a list of their websites through which casino gambling games are organised and conducted on the Internet;

52) “Register of Betting Organisers” means a public database that contains information on betting organisers, a list of the betting outlets through which betting organisers carry out their activities (with the addresses specified) and/or a list of the websites through which betting organisers organise and conduct their activities on the Internet;

53) “Register of Poker Organisers” means a public database that contains information on poker organisers and a list of their websites through which poker organisers organise and conduct poker gambling games on the Internet;

54) “Register of Individuals with Restricted Access to Gaming Venues and/or Gambling” means a database that contains information on individuals who were (on application or by court order) restricted from visiting gaming venues and participating in gambling games;

55) “gaming machine monitoring system” means any special-purpose technical equipment and/or software and hardware system designed to connect gaming machines to both a gambling organiser’s online system and the state online monitoring system in order to receive and transmit information online from (to) a relevant gaming machine via the Internet or other communication channels, and to collect, process, accumulate and register information regarding bets accepted and prizes paid out;

56) “special gaming area” means an area (place) designated (in accordance with this Law) to organise and conduct gambling games in casino gaming venues, gambling games in gaming machine venues, or betting activities through betting outlets;

57) “sports poker” means a game of sports that is conducted in the form of tournaments (other than online poker tournaments), and, in order to participate in it, players place fixed bets (starting bets) that constitute a prize fund from which prizes are paid out to a winner (winners), depending on the place in the game at which such player finished the game;

58) “bet” means money or a gaming hryvnia substitute that a player gives to a gambling organiser and is a condition to participating in a gambling game, and the amount of a prize is determined based on the amount of such bet in accordance with the rules of such gambling game;

59) “certification entities” means foreign and/or Ukrainian business entities that may certify and inspect gaming equipment in accordance with the law and that are accredited with the Ukrainian National Accreditation Authority or the accreditation of which is recognised by a foreign accreditation authority under an international treaty to which Ukraine is a party, in respect of compliance with standards ISO/IEC 17020 (DSTU ISO/IEC 17020) and ISO/IEC 17025 (DSTU ISO/IEC 17025), or other standards replacing the same, for gaming equipment certification and inspection;

60) “poker tournament” means the form in which a sports poker game is organised;

61) “cylindrical game (roulette)” means a gambling game in which players (predicting combinations of numbers, symbols, colours or other signs by means of a rotating device) win prize amounts, depending on the amount of their bets and the calculation ratio set before such game begins;

2. As used in this Law, the terms “excellent business reputation”, “substantial shareholding”, “ultimate beneficial owner”, “proper check” and “official document” have the meanings set out in the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing.

3. As used in this Law, the term “certification” has the meaning set out in the Ukrainian Law on Technical Regulations and Conformity Assessment, and the term “close person” has the meaning set out in the Ukrainian Law on Corruption Prevention.

Article 2. Activities in the organisation and conduct of gambling games

1. Only the following activities in the organisation and conduct of gambling games shall be permitted to be organised and conducted in Ukraine:

1) organising and conducting of gambling games in casino gaming venues;

2) organising and conducting of casino gambling games on the Internet;

3) organising and conducting of betting activities at betting outlets and on the Internet;

4) organising and conducting of gambling games in gaming machine venues;

5) organising and conducting of poker gambling games on the Internet.

Such activities in the organisation and conduct of gambling games as specified in this paragraph may not be carried out in Ukraine, unless a business entity holds the relevant licences provided for in this Law and unless they are carried out through gaming equipment that is certified in accordance with this Law and connected to the State Online Monitoring System and the online systems of gambling organisers.

2. Ukrainian business entities shall have the right to render the services of suppliers and/or providers of software directly used in the organisation and conduct of gambling games by, including, without limitation, gambling organisers and non-Ukrainian residents (that hold a foreign gambling licence) solely under a service licence in relation to the organisation and conduct of gambling games.

3. Any game that does not satisfy at least one of the following conditions shall not be considered a gambling game:

1) there is a bet;

2) a prize may, or may not, be received;

3) the odds and amount of a prize depend, fully or partially, on chance.

4. Any activities in the organisation and conduct of gambling games, other than those specified in paragraph one of this Article, shall be prohibited in Ukraine.

5. The following are not gambling games:

1) organising and conducting of creative contests, sports competitions etc, whether or not their terms and conditions provide for any money or property prize;

2) billiards, bowling and other games in which a player receives no prize;

3) a game played on claw crane-type machines (two-dimensional machines), in which a player receives only tangible things (toys, sweets etc) as a prize.

4) issuing and conducting of lotteries;

5) organising and conducting of a sports poker.

7. In Ukraine, it shall also be prohibited:

1) to conduct gambling games and to locate gaming venues in Ukraine’s temporarily occupied territory;

2) for gambling games to be organised and conducted by those who have not duly obtained a licence to carry on the relevant business in the organisation and conduct of gambling games;

3) to organise and conduct gambling games that do not satisfy the requirements in this Law or outside gaming venues (except for Internet gambling games);

4) to conduct gambling games without using a gambling organiser’s online system that is connected to the State Online Monitoring System via communication channels where such gambling organiser is required to use such system in accordance with this Law;

5) to use non-certified equipment to conduct gambling games where the Competent Authority requires that such equipment must be certified.

Article 3. Ukrainian gambling laws

1. Ukrainian gambling laws consist of the Ukrainian Constitution, this Law, the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing, the Ukrainian Law on the Prevention of Corruption Offences from Influencing the Outcome of Official Sports Competitions, the Ukrainian Tax Code and other laws and regulations adopted (in accordance with this Law) to regulate relationships in the said field, and applicable international treaties approved by Ukrainian Parliament as binding.

2. Gambling games shall be licensed in the manner set out in this Law.

3. This Law is a special (framework) law regulating social relationships in the organisation and conduct of gambling games. If a Ukrainian law sets out any rules, other than those specified in this Law, the rules of this Law shall prevail.

Article 4. Purpose and principles of the national policies on the organisation and conduct of gambling games

1. The purpose of the national policies on the organisation and conduct of gambling games is to create conditions for mitigating social risks of the organisation and conduct thereof and to ensure compliance by gambling organisers with the law.

2. The principles of the national policies on the organisation and conduct of gambling games are:

1) to protect the rights, legitimate interests, life and health of citizens;

2) to ensure that rules of a gambling game (which shall be the same for all players) are adhered to;

3) to ensure the principle of responsible play;

4) to ensure that the principles of transparency, stability, openness, equality, fairness and objectivity are observed in gambling games;

5) to prevent any outside influence on the outcome of gambling games;

6) to support the development of Ukraine’s economy and the social and cultural sphere and to support and develop sports, healthcare, education and science in Ukraine from the proceeds of gambling games conducted in Ukraine;

7) to prohibit any undue influence on the conduct and outcome of sports events;

8) to protect personal data;

9) to fight gambling addiction.

Article 5. Registers relating to the organisation and conduct of gambling games

1. To ensure public access to information on gambling organisers in Ukraine, the Competent Authority shall create and keep the following registers:

the Register of Casino Venue Gambling Organisers;

the Register of Internet Casino Gambling Organisers;

the Register of Betting Organisers;

the Register of Gaming Machine Gambling Organisers;

the Register of Internet Poker Organisers;

the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling.

2. The Register of Casino Venue Gambling Organisers, the Register of Internet Casino Gambling Organisers, the Register of Betting Organisers, the Register of Gaming Machine Gambling Organisers and the Register of Internet Poker Organisers shall be publicly available, free of charge, on the official website of the Competent Authority.

3. Data on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling shall be restricted information. Access to such information shall be granted only to the Competent Authority and gambling organisers for fulfilling the duties vested in them by this Law.

4. The Competent Authority shall approve (i) procedures for keeping the registers relating to the organisation and conduct of gambling games, and (ii) procedures for entering information into, making changes to, and deleting information from, the registers.

5. The registers shall be the property of the state.

SECTION II

THE STATE REGULATION OF AND THE STATE SUPERVISION (CONTROL) OVER THE ORGANISATION AND CONDUCT OF GAMBLING GAMES

Article 6. The state regulation of the organisation and conduct of gambling games

1. The state regulation of the organisation and conduct of gambling games shall be carried out by the Ukrainian Parliament, the Ukrainian Cabinet of Ministers, the Gambling and Lottery Regulation Commission and other state authorities within their powers set out in the Constitution and laws of Ukraine.

2. The Ukrainian Parliament shall determine the national policies on the organisation and conduct of gambling games.

3. The Ukrainian Cabinet of Ministers shall ensure the shaping of the national policies on the organisation and conduct of gambling games by approval of licence conditions in respect of the business of organising and conducting gambling games and other subordinate regulations which the Ukrainian Cabinet of Ministers is legally authorised to adopt.

4. The Gambling and Lottery Regulation Commission (the “Competent Authority”) shall be the state regulator of the organisation and conduct of gambling games.

5. The Competent Authority shall be the central executive authority enjoying a special status that ensures the state regulation of gambling and lottery activities and shall be established by the Ukrainian Cabinet of Ministers in accordance with the Ukrainian Constitution, this Law and other Ukrainian laws. The Competent Authority’s activities shall be guided and coordinated by the Ukrainian Cabinet of Ministers.

The aspects of the Competent Authority’s special status shall be conditional on its tasks and powers and shall be set out in this Law and other statutes and shall involve, among other things, co-leadership, special procedures for the appointment and removal of Chair and members of the Competent Authority, and special principles of the authority’s activities.

6. The Competent Authority shall be a legal entity under public law and have separate state-owned property, an independent balance sheet, accounts with bodies that provide treasury services in relation to budget funds, and seals depicting the National Coat of Arms of Ukraine and bearing its name.

7. The powers of the Competent Authority shall be approved by the Ukrainian Cabinet of Ministers.

8. The Ukrainian Law on Central Executive Authorities, other laws and regulations applicable to the activities of executive authorities, and the Ukrainian Law on the Public Service shall apply subject to the specific provisions set out in this Law.

9. The Competent Authority’s activities shall be financed from the State Budget of Ukraine.

Article 7. Composition and structure of the Competent Authority

1. The Competent Authority shall, as a collective body, be composed of Chair of the Competent Authority and six members of the Competent Authority. The Competent Authority shall be duly constituted with effect from the appointment of more than half of all those composing it.

2. Chair and members of the Competent Authority shall be appointed to and removed from office by the Ukrainian Cabinet of Ministers in the manner set out in this Law.

3. Chair and members of the Competent Authority shall be appointed to and removed from office by the Ukrainian Cabinet of Ministers in the manner set out in this Law.

Chair and members of the Competent Authority shall be appointed to office as a result of an open competition held in accordance with this Law and the Competitive Selection Procedures approved by the Ukrainian Cabinet of Ministers.

The Ukrainian Prime Minister shall propose that the Ukrainian Cabinet of Ministers appoint Chair and members of the Competent Authority from among the candidates selected as a result of the competition.

The Commission on Highest Public Officials shall organise and hold the competitive selection of candidates for Chair and members of the Competent Authority.

As a result of the competition, the Commission on Highest Public Officials shall recommend that the Ukrainian Cabinet of Ministers appoint Chair and member(s) of the Competent Authority from among those candidates who have earned the highest points overall as a result of the overall candidate ranking process, whose number shall be:

1)              for one vacancy, two candidates;

2)              for two vacancies, three candidates;

3)              for three vacancies, four candidates;

4)              for four vacancies, six candidates;

5)              for five vacancies, seven candidates;

6)              for six vacancies, eight candidates; and

7)              for seven vacancies, nine candidates.

The Commission on Highest Public Officials shall publish information on the candidates who have received the highest ranking and been recommended to the Ukrainian Cabinet of Ministers on the official website of the Ukrainian Cabinet of Ministers.

The Ukrainian Cabinet of Ministers shall decide on the appointment of Chair and/or members(s) of the Competent Authority from the list of the candidates recommended by the Commission on Highest Public Officials within 10 business days from the date of the recommendation.

3. Chair and members of the Competent Authority shall be appointed to and removed from office by the Ukrainian Cabinet of Ministers as a result of a competition and in the manner set out in this Law.

A Competition Committee shall be established within the Ukrainian Cabinet of Ministers.

Members of the Competition Committee shall be approved by the Ukrainian Cabinet of Ministers. The Competition Committee shall be composed of five persons recommended by the Ukrainian Parliament’s committee within whose competence the matters related to issuing and conducting lotteries, the taxation of those engaged in such activities, and gabbling business lie.

The Competition Committee shall be deemed duly constituted if at least four persons are approved as its members.

Those who have a university degree and excellent business reputation, satisfy high professional and moral standards and have achieved public renown may be members of the Competition Committee.

Those who own, directly or indirectly, equity interests in gambling organisers, gaming equipment manufacturers or gambling service providers, receive financial or tangible compensation and aid from them or hold any office within any structural units of a gambling organiser or gambling service provider, including on a pro bono basis, may not be members of the Competition Committee.

No member of the Competition Committee may participate in the competitive selection to fill a vacancy on the Competition Committee. No former member of the Competition Committee may participate in the competitive selection to fill a vacancy on the Competition Committee within 12 months from date on which he ceased to be a member of the Competition Committee.

A member of the Competition Committee shall be appointed to office for a term of three years, and such appointment may be terminated either by the Ukrainian Parliament’s committee within whose competence the matters related to issuing and conducting lotteries, the taxation of those engaged in such activities, and gabbling business lie or by resignation.

Members of the Competition Committee shall perform their functions on a pro bono basis.

The Competition Committee shall elect chair by vote. Such matter shall be decided by a simple majority of votes cast by members of the Competition Committee.

The rules of the Competition Committee shall be approved by the Competition Committee.

The Competition Committee shall hold meetings in the form of open hearings. A meeting of the Competition Committee shall be recorded on video and audio through the official website of the Ukrainian Cabinet of Ministers. Minutes of the Competition Committee shall be published on the official website of the Ukrainian Cabinet of Ministers within three business days after the meeting.

Members of the Ukrainian Parliament and the public may attend meetings of the Competition Committee as observers.

State authorities, local authorities, their officers or servants, political parties, public organisations and other individuals or legal entities may not illegally interfere in the activities of the Competition Committee.

Information on the business to be transacted at, and the time and place of, a meeting of the Competition Committee shall be published on the official website of the Ukrainian Cabinet of Ministers at least two business days prior to the date of such meeting.

The Secretariat of the Ukrainian Cabinet of Ministers shall provide support for the proceedings of the Competition Committee.

The Competition Committee shall announce that it will accept documents for an open competition:

1) where the Competent Authority is established, within 10 days from the date on which at least four members of the Competition Committee;

2) where the term of office of a member (members) of the Competent Authority as specified in this Law expires, at least three months prior to the expiry date;

3) where the appointment of a member (members) of the Competent Authority is terminated in accordance with this Law, within five business days of such termination.

Documents shall be accepted for an open competition within 30 calendar days from the date on which such competition is announced. Procedures and conditions for an open competition shall be approved by the Competition Committee and published on the official website of the Ukrainian Cabinet of Ministers and in national print media.

Procedures and conditions for an open competition shall contain, among other things:

1) requirements in respect of the professional competency evaluation criteria according to which the Competition Committee shall make a ranking of candidates to fill one or more vacancies in the Competent Authority;

2) a list of documents to be provided by a person who is willing to take part in such open competition;

3) requirements ensuring transparent competition and decision-making;

4) requirements for competition materials to be kept for the term of office of a member of the Competent Authority.

Resolutions shall be decided by a simple majority of votes cast by members of the Competition Committee. In the event of equality of votes, the chair of the Competition Committee shall have a casting vote.

As a result of the competition, the Competition Committee shall, within two business days from the date of the resolution, recommend that the Ukrainian Cabinet of Ministers appoint Chair and/or member(s) of the Competent Authority from among those candidates who have earned the highest points overall as a result of the overall candidate ranking process, whose number shall be:

1) for one vacancy, two candidates;

2) for two vacancies, three candidates;

3) for three vacancies, four candidates;

4) for four vacancies, six candidates;

5) for five vacancies, seven candidates;

6) for six vacancies, eight candidates; and

7) for seven vacancies, nine candidates.

The Competition Committee shall publish information on the candidates who have received the highest ranking and been recommended to the Ukrainian Cabinet of Ministers on the official website of the Ukrainian Cabinet of Ministers.

The Ukrainian Cabinet of Ministers shall decide on the appointment of Chair and/or members(s) of the Competent Authority from the list of the candidates recommended by the Competition Committee within 10 business days from the date of the recommendation by the Competition Committee.

Chair and members of the Competent Authority shall be appointed to office by order of the Ukrainian Cabinet of Ministers.

4. Ukrainian citizens who have a university degree (in public management and administration, economics or law), excellent business reputation and at least five years of overall professional experience (including at least three years of executive experience) and are fluent in the official language may be Chair and member of the Competent Authority.

5. Chair and members of the Competent Authority shall be public officials.

6. Chair and members of the Competent Authority shall be permanent employees. Chair and members of the Competent Authority may not, while serving in office, hold any office, including on a pro bono basis, within any state or private agencies, organisations, institutions or companies or receive any compensations or one-time fees for any work, other than scientific, teaching or creative. The foregoing provision shall not apply to creative activities in the gambling sector.

7. Chair or members of the Competent Authority may not own, directly or indirectly, equity interests in gambling organisers, gaming equipment manufacturers or gambling service providers, receive financial or tangible compensation and aid from them or hold any office within any structural units of a gambling organiser or gambling service provider, including on a pro bono basis.

8. Chair or a member of the Competent Authority shall, as of the date of appointment, cease to be a founder (co-founder) of gambling organisers and/or gaming equipment manufacturers and dispose of a share in the assets of such business entities.

9. The term of office of Chair or a member of the Competent Authority shall be four years. No person may be a member of the Competent Authority for more than two consecutive terms.

10. After the expiry of his term in office, Chair or a member of the Competent Authority shall continue to serve as such until another Chair or member of the Competent Authority is appointed, unless the appointment of Chair or a member of the Competent Authority is terminated.

11. The Competent Authority may not delegate its powers to third parties. Chair or a member of the Competent Authority may not alone exercise the functions vested in the Competent Authority.

12. A member of the Competent Authority shall:

1) attend meetings of the Competent Authority;

2) give effect to resolutions of the Competent Authority;

3) participate in the preparation of business to be considered by the Competent Authority;

4) coordinate the work of the Competent Authority’s staff in view of the functions allocated by the Competent Authority.

13. A member of the Competent Authority may:

1) examine documents received by the Competent Authority;

2) propose that matters reserved to him be included in the business to be transacted by the Competent Authority;

3) speak at meetings of the Competent Authority and make proposals relating to the business transacted.

14. Chair or a member of the Competent Authority shall cease to be Chair or a member upon death, if he is declared missing or dead, or if his term in office expires.

15. Chair or a member of the Competent Authority may be removed from office if:

1) he gives notice of resignation;

2) ceases to be a Ukrainian citizen or leaves Ukraine for permanent residence abroad;

3) he is in breach of the requirements set out in this Article;

4) a guilty verdict in respect of him becomes valid;

5) he is unable to act as such for health reasons;

6) he fails to attend meetings of the Competent Authority without good cause for two months;

7) he is declared incompetent or becomes restricted in his civil capacity;

8) he grossly breaches his duties;

9) there are such other grounds as provided for in the Ukrainian Law on the Public Service.

16. No member of the Competent Authority may hold the office of Chair of the Competent Authority for two consecutive terms.

17. If no Chair of the Competent Authority is appointed, members of the Competent Authority shall act, by rotation, as Chair of the Competent Authority for one month. The order of rotation in which they shall act as Chair of the Competent Authority shall be set out in the Regulation.

18. Chair of the Competent Authority shall:

1) convene meetings of the Competent Authority;

2) preside at meetings of the Competent Authority;

3) propose the business to be transacted at a meeting of the Competent Authority, taking into account proposals made by members of the Competent Authority;

4) attend meetings of the Ukrainian Cabinet of Ministers;

5) represent the Competent Authority before the Ukrainian Cabinet of Ministers;

6) represent the Competent Authority before foreign government authorities (in matters pertaining to gambling market supervision (control)) and international organisations;

7) act on behalf of the Competent Authority without a power of attorney and within the scope prescribed by Ukrainian law;

8) sign documents issued in accordance with resolutions of the Competent Authority and documents related to the day-to-day activities of the Competent Authority.

19. The proceedings of the Competent Authority shall generally take place at meetings that shall be held by decision of Chair of the Competent Authority or on request of at least three members of the Competent Authority at least once a month.

20. A meeting of the Competent Authority shall have a quorum if five of its members are present thereat.

21. Members of the Competent Authority shall have one vote each.

22. A resolution of the Competent Authority shall be deemed passed if a majority of all members of the Competent Authority vote in its favour. Licences shall be granted and revoked by a decision of the Competent Authority passed by two-thirds of all members of the Competent Authority in the manner prescribed by this Law.

23. Remuneration, leave and social security conditions for Chair and members of the Competent Authority shall be the same as those set out for Class A public officials in the Ukrainian Law on the Public Service.

24. The staff of the Competent Authority (“staff”) and its local offices shall provide support for the activities of the Competent Authority.

25. Both a regulation on the staff and their structure shall be approved by the Competent Authority. The maximum number of the staff and the local offices shall be approved by the Ukrainian Cabinet of Ministers.

26. The Competent Authority may establish and liquidate its local offices to exercise its powers. The local offices shall have no legal personality and shall act in accordance with a regulation approved by the Competent Authority.

27. Chief of Staff and Deputy Chiefs of Staff shall be appointed to and removed from office by the Competent Authority.

28. The members of the Competent Authority’s staff who hold public office shall be public officials.

29. The member of the staff, including Chief of Staff, or their close persons may not own, directly or indirectly, equity interests in gambling organisers, gaming equipment manufacturers or gambling service providers, receive financial or tangible compensation and aid from them or hold any office within any structural units of a gambling organiser or gambling service provider, including on a pro bono basis.

30. The Competent Authority’s Chief of Staff shall:

1) manage the activities of the Competent Authority’s staff;

2) issue orders and instructions pertaining to the activities of the Competent Authority’s staff;

3) appoint and dismiss members of the Competent Authority’s staff;

4) provide incentives to, and take disciplinary measures against, members of the staff;

5) carry out other functions necessary to ensure the exercise by the Competent Authority of the powers vested in it by this Law.

31. An Expert Advisory Council shall be set up by resolution of the Competent Authority as a permanent, pro bono body that shall take part in discussing draft documents prepared and/or considered by the Competent Authority. Members of, and a regulation on, such Expert Advisory Council shall be approved by the Competent Authority.

Article 8. Powers of the Competent Authority

1. During the implementation of national policies on the organisation and conduct of gambling games, the Competent Authority shall have the power to:

1) make proposals to state authorities in respect of bills and draft regulations in the gambling sector;

2) issue, and to control the implementation of, regulations pertaining to the matters reserved for the Competent Authority;

3) make decisions within its competence that shall be binding on gambling organisers;

4) prepare and submit licence conditions in respect of the business of organising and conducting gambling games to the Ukrainian Cabinet of Ministers for approval;

5) apply to court to the extent prescribed by law;

6) create favourable organisational and economic conditions for attracting investment in the organisation and conduct of gambling games;

7) ensure equal conditions for the business of organising and conducting gambling games;

8) cooperate with the relevant foreign regulators for the organisation and conduct of gambling games;

9) act as a licensing authority for the business of organising and conducting gambling games and to decide to grant and revoke licences in the manner prescribed by this Law;

10) approve a list and forms of reports and reporting procedures for gambling organisers;

11) keep the registers set out in this Law;

12) consider complaints from players and other persons regarding actions of gambling organisers and, if breaches are found, take measures in accordance with this Law;

13) interact, in the exercise of its powers, with state authorities, local authorities, public associations and other organisations;

14) keep a list of certification entities and determine a list ofcertifiable gaming equipment;

15) establish procedures for inspecting gaming equipment;

16) set requirements for fighting extreme gambling addiction;

17) establish the principles of responsible play;

18) take measures to prevent and detect violations of the law applicable to the organisation and conduct of gambling games;

19) receive documents, materials, statistical and other information (specified by law and required for the exercise of its powers) from central and local executive authorities, executive authorities of the Autonomous Republic of Crimea, and local authorities free of charge;

20) receive reports and information (required for the exercise of its powers, including those containing financial and economic indicators) from gambling organisers free of charge and in the forms and manner determined by the Competent Authority;

21) organise and exercise the state control over the organisation and conduct of gambling games and, in particular, control over compliance with this Law and licence conditions by conducting scheduled, unscheduled and physical inspections, including through the test purchase method;

22) if licence conditions are found to be breached, prepare and send to gambling organisers a binding order requiring that such breach be remedied;

23) administer the State Online Monitoring System;

24) impose penalties on gambling organisers and other business entities carrying out activities in the organisation and conduct of gambling games, as provided for by this Law;

25) impose requirements applicable to, and prepare and approve procedures for the operation of, the State Online Monitoring System;

26) monitor activities in the organisation and conduct of gambling games and, as a result, prepare a monthly report on key performance indicators in the organisation and conduct of gambling games in the manner prescribed by this Law;

31) exercise such other powers as set out in the law.

27) appoint persons to monitor gaming venues;

28) approve procedures for inspecting gaming venues;

29) approve a description of the player identification card;

30) report to law enforcement agencies where gaming venues are found to be engaged in illegal activities, and cooperate with law enforcement agencies for the purposes of preventing the development and operation of prohibited gambling games and gaming venues;

2. The Competent Authority shall confirm that premises for organising and conducting gambling games in a gaming venue meet with the requirements of this Law by issuing a permit (hereinafter, a “permit”) to the premises owner, confirming that such premises meet with the requirements set out in this Law in respect of gaming venue premises.

To obtain a permit, an application accompanied by the following documents shall be filed with the Competent Authority:

1) a document of title for the premises;

2) a certificate of classification for a hotel;

3) a technical data sheet.

The above list of documents is exhaustive.

The Competent Authority shall decide on whether a permit shall be issued or not within five calendar days from the date the application and accompanying documents are filed.

Anyone who has obtained a permit may use the premises alone or transfer their use to another person.

The Competent Authority shall determine how a permit will be issued.

Article 9. The state supervision (control) over the gambling market

The state supervision (control) over the gambling market shall be exercised by:

1) controlling the availability of statutory licences;

2) checking compliance by gambling organisers with licence conditions;

3) controlling compliance by gambling organisers with statutory requirements, standards, and regulations applicable to the organisation and conduct of gambling games;

4) monitoring the activities of gambling organisers through the State Online Monitoring System;

2. To exercise the state supervision (control) over the gambling market, the authorised officials of the Competent Authority shall have the right:

1) to access the territory and premises of gambling organisers and gaming venues of gambling organisers in accordance with the law;

2) to check compliance by gambling organisers with the requirements of Ukrainian gambling laws on such grounds and in such manner as set out in the law;

3) within their powers, to give gambling organisers binding orders requiring that any breach of regulations be remedied;

4) to impose appropriate penalties on gambling organisers and others who violate the law applicable to the organisation and conduct of gambling games in the manner prescribed by law;

5) to receive information, documents, explanations and other materials (required for carrying out the tasks vested in the Competent Authority by this Law) from gambling organisers free of charge;

6) to receive documents, materials, statistical and other information (required for carrying out the functions vested in the Competent Authority) from central and local executive authorities, executive authorities of the Autonomous Republic of Crimea, and local authorities free of charge;

7) to receive information and documents from gambling organisers as necessary for the consideration of appeals received by the Competent Authority from individuals and legal entities;

8) other statutory rights.

3. The central executive authority that implements national tax policies shall control compliance with tax laws in the organisation and conduct of gambling games.

The central executive authority that implements national tax policies shall conduct scheduled and unscheduled compliance checks, including via the State Online Monitoring System, in respect of the payment of taxes, levies and charges.

4. Cash registers shall be used during activities in the organisation and conduct of gambling games in the manner provided for in the Ukrainian Law on the Use of Cash Registers in Trade, Catering and Service Industries.

Article 10. Exercise of the state supervision (control) over the gambling market

1. The state supervision (control) over the gambling market shall be exercised by conducting scheduled inspections, unscheduled inspections and physical inspections (through the test purchase method) and by monitoring the activities of gambling organisers via the State Online Monitoring System.

2. Scheduled inspections of gambling organisers and their separate divisions shall be conducted no more than once a year, but no less than once every three years in accordance with the plans approved by the Competent Authority.

3. Unscheduled inspections shall be conducted by resolution of the Competent Authority in respect of the matters specified therein. A decision to conduct an unscheduled inspection shall be passed:

1) on the basis of a written or electronic report on a breach of the law, standards or other regulations applicable to the organisation and conduct of gambling games;

2) to verify the carrying out of instructions or orders requiring that previously found breaches be remedied;

3) if any data specified in any mandatory reporting documents filed by a gambling organiser are found to be inaccurate or if such data are received via the State Online Monitoring System;

4) to check compliance by gambling organisers with the requirement that gaming equipment must be connected to the State Online Monitoring System.

4) Physical inspections (through the test purchase method) shall be conducted by resolution of the Competent Authority solely on the following grounds (if any):

1) based on the findings of an analysis of information received in the manner prescribed by law;

2) based on the findings of the monitoring of gambling organisers’ activities via the State Online Monitoring System;

3) facts have been established showing that a business entity engaged in the activities of organising and conducting gambling games is in breach of Ukrainian gambling laws;

4) players have filed a complaint regarding actions of gambling organisers.

The authorised officials of the Competent Authority shall, as instructed by Chair of the Competent Authority, verify whether information contained in the documents filed by an applicant to obtain a licence and/or permits is accurate and whether both the applicant and the documents filed satisfy the licence conditions.

6. Inspections shall be carried out by the authorised officials of the Competent Authority. An inspection report shall be prepared in two copies following such inspections. One copy of such report shall be issued to the inspected gambling organiser, and the second copy shall be kept by the Competent Authority.

7. The state supervision (control) over the gambling market shall be exercised in the manner prescribed by the Ukrainian Law on the Fundamental Principles of the State Supervision (Control) in Business Activities, subject to the specific provisions set out in this Law.

The activities of gambling organisers shall be monitored by permanent remote access to the online systems of gambling organisers via the State Online Monitoring System.

8. A gambling organiser that received an instruction or order of an authorised official of the Competent Authority requiring that breaches of the law applicable to the organisation and conduct of gambling games be remedied shall remedy the breaches found and provide the relevant information to the Competent Authority within the time specified in such instruction or order. The time during which a gambling organiser shall remedy any breaches of Ukrainian gambling laws shall not exceed two months from the date that gambling organiser receives such instruction or order of the Competent Authority.

Article 11. Openness of the Competent Authority's activities

1. The Competent Authority shall ensure the openness of its activities.

2. The business to be transacted at a meeting of the Competent Authority shall be published on the official website of the Competent Authority at least three business days prior to the date of such meeting.

3. The Competent Authority shall hold meetings in the form of open or closed hearings. If matters of public importance are considered, meetings shall be held in the form of open hearings that may be attended by gambling market players and public associations in the manner prescribed in the Competent Authority’s rules.

4. The Competent Authority shall inform the public of its performance and shall publish regulations, information required by law and other information on its activities in the media, particularly, in print media, and on its official website.

5. The Competent Authority shall publish its annual performance reports on its official website on or before 1 April of the year following each reporting year. Chair of the Competent Authority shall, by 1 June of each year, report on the Competent Authority’s performance at a meeting of the Ukrainian Parliament’s committee within whose competence the matters related to issuing and conducting lotteries, the taxation of those engaged in such activities, and gambling business lie.

6. The Competent Authority shall monitor activities in the organisation and conduct of gambling games and shall use monitoring findings to prepare an annual report on key performance indicators in the organisation and conduct of gambling games. Such report shall contain, among other things, information on gaming venue organisers, the number of gaming venues, the number and types of licences issued, breaches found and penalties, the number of complaints considered and the measures taken, the amount of national and local budget receipts from the said activities, the number of those who gambled, including by types of gambling games, the funds received as bets accepted and as prizes paid out, the number of those who were entered into the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling, and the measures taken to prevent and fight gambling addiction.

Article 12. The State Online Monitoring System

The State Online Monitoring System shall be created to control the activities of gambling organisers, to monitor the operation of gaming equipment, and to ensure the rights of players.

The State Online Monitoring System shall be the main instrument for the Competent Authority to carry out the function of exercising the state supervision (control) over the activities in the organisation and conduct of gambling games.

2. The State Online Monitoring System shall be the property of the state.

3. The operation, exploitation and maintenance of, and a list of users and the scope of access rights for various users of, the State Online Monitoring System, and the interaction between the State Online Monitoring System, gambling organisers and the Competent Authority shall be determined by the operating procedures for the State Online Monitoring System that shall be approved by the Ukrainian Cabinet of Ministers.

4. The Competent Authority shall have unrestricted access to all information stored in the State Online Monitoring System, as well as online access to non-personalised player data available in the State Online Monitoring System (except for the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling, the information in which shall be personalised).

5. Gambling organisers shall connect the relevant gaming equipment, including online systems, to the State Online Monitoring System in the manner determined by the Competent Authority. The connection of gaming equipment to the State Online Monitoring System and its use shall be free of charge.

6. The duty to ensure the operation and administration of the State Online Monitoring System shall be vested in the Competent Authority.

7. The State Online Monitoring System shall have a certificate from a Ukrainian and/or foreign laboratory designated by the Competent Authority in accordance with this Law.

8. The State Online Monitoring System shall operate continuously. If the State Online Monitoring System ceases to operate for technical or any other reasons, all gambling organisers shall continue to carry on their business and, after the State Online Monitoring System resumes, deliver the information accumulated for the relevant period in the manner specified by the Competent Authority.

The duty to ensure the continuous operation of the State Online Monitoring System shall be vested in the Competent Authority.

Article 13. Tasks and functions of the State Online Monitoring System

1. The tasks of the State Online Monitoring System shall be:

1) to carry out the functions of exercising the state control over activities in the organisation and conduct of gambling games, including cash flows, by promptly receiving complete and accurate online information regarding the operations of gambling organisers, each transaction of accepting a bet, paying out a prize, making a payout, etc.

2) to freely transmit and receive data in real time 24/7, to record (in real time) each transaction of accepting a bet, paying out a prize or making a payout, to process, register, accumulate and store information on registered bets and/or amounts of gaming hryvnia substitutes purchased by a player (which shall be recorded in customer accounts of such players), prizes paid out, and the form in which players were paid (the said information shall be transmitted to the State Online Monitoring System in a non-personalised form, except as otherwise set out in this Law);

3) to carry out control functions in respect of whether all taxes, levies and charges have come to budgets and state special-purpose funds in accordance with the law;

4) to control the overall prize percentage for gaming machines;

5) to protect the rights of players and to mitigate gambling addiction.

2. The State Online Monitoring System shall ensure:

1) that data are freely transmitted and received in real time 24/7 and that information on each transaction of accepting a bet, paying out a prize or making a payout and other transactions, the form in which players were paid, and the gross income of a gambling organiser can be processed, registered, accumulated and stored (the said information shall be transmitted to the State Online Monitoring System in a non-personalised form, except as otherwise set out in this Law);

2) that the gross income of gambling organisers, including the overall prize percentage for gaming machines, is controlled in real time;

3) that information is intact during its processing, registration, accumulation and storage and that the origin of information is authenticated;

4) that the accuracy of information is controlled;

5) that the personal data of players are kept confidential;

6) that information is automatically backed up and recovered and that the database integrity is preserved in the event of a scheduled and/or emergency shutdown of the system;

7) that information is stored for a period designated by the Competent Authority, but at least for the term of the gambling organiser’s relevant licence;

8) that gaming machines can be remotely switched off;

9) that gambling organisers have access to the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling;

10) that controls and protections are used in respect of information in the State Online Monitoring System in compliance with laws and regulations.

The State Online Monitoring System shall contain information, broken down by each gaming venue, each gaming equipment and each gambling game conducted, as well as by the period of gambling games (day, week, month, quarter, year), regarding:

1) each bet accepted in a gambling game;

2) bets refunded;

3) a prize paid out in gambling games.

All operations within the State Online Monitoring System shall be recorded in real time, with the time (second, minute, hour, day, month, year) of each operation to be specified.

The online systems of gambling organisers shall contain the information specified in this paragraph for the State Online Monitoring System and shall transmit such information to the State Online Monitoring System in real time.

SECTION III

THE ORGANISATION AND CONDUCT OF GAMBLING GAMES: GENERAL REQUIREMENTS

Article 14. Gambling organiser requirements

1. A gambling organiser may be only a Ukrainian resident entity:

1) that was formed and operates in Ukraine in the manner prescribed by law, whose primary activity is the organisation and conduct of gambling games;

2) whose authorised (share) capital was formed from cash of at least thirty million hryvnias, and a larger amount of authorised (share) capital may be formed from securities, other property, and property rights;

3) whose authorised (share) capital may not be formed from of government funds (except in the event of formation of the authorised (share) capital of a racecourse owner who intends to carry out, or carries out, the activities of organising and conducting totalisator wagers at such racecourse). No authorised capital may be formed from funds the source of which cannot be confirmed by official documents or their duly certified copies;

4) whose directors, chief accountant, substantial shareholders and ultimate beneficial owners have excellent business reputation and are not citizens of a country declared an occupying state and/or aggressor state in relation to Ukraine in accordance with the law;

5) whose members (shareholders) are not local authorities or legal entities entered into a register of non-profit organisations and institutions (save for members (shareholders) of a racecourse owner who intends to carry out, or carries out, the activities of organising and conducting totalisator wagers at such racecourse);

6) that is not directly or indirectly controlled (within the meaning set out in Article 1 of the Ukrainian Law on the Protection of Economic Competition) by residents of a foreign country declared an occupying state and/or aggressor state in relation to Ukraine in accordance with the law, or that is not acting in its interests;

7) whose ultimate beneficial owners are not residents of a foreign country declared an occupying state and/or aggressor state in relation to Ukraine in accordance with the law;

8) whose members (shareholders) are not the ultimate beneficial owners of a resident of a foreign country declared an occupying state and/or aggressor state in relation to Ukraine in accordance with the law;

9) that does not own, directly or indirectly (through another individual or legal entity), any share in a resident of a foreign country declared an occupying state and/or aggressor state in relation to Ukraine in accordance with the law;

10) whose members (founders or shareholders) are not legal entities registered in the countries included in the Financial Action Task Force on Money Laundering (FATF) list of countries that do not cooperate or cooperate improperly in the fight and prevention of money laundering, terrorist financing and weapons of mass destruction proliferation financing;

11) that satisfies such other requirements as set out in this Law.

2. The following may not be a gambling organiser:

1) banks or other financial institutions;

2) companies, institutions or organisations entered into the Register of Non-Profit Institutions and Organisations;

3) legal entities that are prohibited by valid court order from organising and conducting gambling games.

3. A gambling organiser shall have a designated bank deposit account opened or a bank guarantee issued for prize payouts in the amount of seven thousand two hundred (7,200) times the minimum salary as effective at 1 January of each current year.

4. Individuals under the age of 21 may not be employees of a gambling organisers.

5. Gambling organisers and their officers shall satisfy such other requirements as provided for in this Law and shall satisfy such organisational, qualification, financial, economic and other requirements as provided for by applicable licence conditions.

Article 15. Duties of a gambling organiser

1. In the course of its activities, a gambling organiser shall:

1) comply with the requirements of this Law, the licence conditions applicable to the licensed business activity in the organisation and conduct of gambling games, and other Ukrainian laws and regulations;

2) follow the rules of gambling games;

3) conduct only such gambling games as permitted by this Law and only after a licence to organise and conduct the relevant activity in the organisation and conduct of gambling games has been obtained;

4) comply with the requirements of the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing and other laws and regulations on the fight and prevention of money laundering, terrorist financing, and weapons of mass destruction proliferation financing;

5) do nothing that is likely to influence the outcome of gambling games (the said restriction shall not apply to any public announcement and payment of additional cash compensation to athletes participating in national or international competitions, Olympic or Paralympic Games);

6) establish and develop gambling organiser rules;

7) use an online system (that a gambling organiser is required to use in accordance with this Law and that shall be connected (in real time) to the State Online Monitoring System via communication channels) to record each transaction of accepting a bet, refunding a bet, paying out a prize in each gambling game, making a payout, exchanging money for gaming hryvnia substitutes and vice versa, as well as other transactions specified in the operating procedures for the State Online Monitoring System;

8) follow the principles of responsible play as established by the Competent Authority;

9) ensure that the following documents or their copies are kept in a gaming venue: documents regarding the right to own or use the premises (a certificate of title, sale and purchase agreement, lease agreement etc), within which gambling games are organised and conducted, documents regarding the right to own or use the gaming equipment (a sale and purchase agreement, lease agreement, issue slip etc), and gaming equipment documents and certificates;

10) install and use gaming equipment that rules out either unauthorised interference in its operation or conditions for a predetermined outcome of a gambling game;

11) pay out (give) a prize in a timely manner and in full in accordance with the gambling game rules and within the period specified in this Law, except as otherwise provided for in the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing, and pay out a prize by wire transfer on the player’s request;

12) take measures to prevent a prize or its equivalent from being paid out (given) or a bet from being refunded to any third parties, including any persons in whose favour a player offers to make a payout or refund (except where a refund is claimed in the case of a bet made by a minor or a person who is incompetent or is restricted in his civil capacity or is on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling, provided that the refund is claimed by a legal representative of such person);

13) keep records of prizes (if any), the amount of which is continuously increasing and depends on the number of bets placed (cumulative or progressive jackpot);

14) keep records of gaming hryvnia substitutes, if used;

15) place information (at a place accessible to players and visitors within a gaming venue) regarding the decision to grant the licence (the date and number of such decision, and the licence term) to organise and conduct gambling games, gambling organiser rules, gaming venue visiting rules and gambling game rules set out in the official language and translated into English, and a notification that losing a game and money is possible;

16) take measures to prevent violations of law by players, visitors, and employees of the gambling organiser;

17) take measures to prevent individuals who have not attained the age of 21 years and those who are subject to restrictions in accordance with this Law from entering a gaming venue;

18) pay fees, when due, for the relevant licence(s) obtained by such gambling organiser;

19) use online systems that rule out either unauthorised interference in their operation or conditions for a predetermined outcome of a game, in the organisation and conduct of gambling games;

20) take measures to fight gambling addiction, including make information material publicly available (at places where activities are carried out in the organisation and conduct of gambling games) about gambling addiction and responsible play and, in particular, about the player age restrictions, chances of winning, principles of responsible play, signs of pathological and problematic gambling addiction, and about the places where assistance can be received in the case of gambling addiction;

21) consider complaints of players and other persons, including in electronic form, and respond to them within the time limits specified in the gambling game rules;

22) notify the Competent Authority of any changes in the data specified in the gambling organiser’s documents that are kept in the licence file within the period prescribed by law;

23) duly ensure the certification and inspection of gaming equipment by certification entities, and shall not use non-certified gaming equipment (if certification is required under this Law);

24) locate gaming venues in compliance with statutory requirements;

25) perform such other duties as set out in this Law and the other gambling laws.

2. A gambling organiser may not force visitors to participate in gambling games.

3. A gambling organiser may not offer or give players free of charge or as a reward for participating in gambling games any alcohol, beer, low-alcohol beverages, tobacco or property, the possession or disposal of which requires appropriate permits or licences.

4. A gambling organiser may not accept bets on credit (by instalments) or on promise to pay, except where a bet is paid with a credit or debit card and such payment is authorised. A gambling organiser may not make loans available to a player to participate in a game, nor may it host any banking or lending institutions, pawnshops, ATMs or exchange offices in gaming venues.

Article 16. The fight against gambling addiction: Requirements and public control

1. It shall be prohibited to accept bets in a gambling game from those who may not be players under this Law.

2. To mitigate the adverse effect of gambling games, gambling organisers shall adhere to the principles of responsible play and shall (inter alia):

1) ensure that any player (players) and a visitor (visitors) are identified in a gaming venue in the manner prescribed by this Law and that any player (players) are identified when their activities are carried out on the Internet;

2) not allow individuals with restricted access to gambling and individuals suffering from extreme gambling addiction to participate in gambling games to the extent and in the manner determined by the Competent Authority;

3) refrain from providing players with any bonus payments, gifts and/or goods (services) in any form or using other forms of encouragement, the provision of which is directly or indirectly due to the loss of a player in the relevant gambling game;

A gambling organiser who has omitted to ensure that individuals (who are prohibited from participating in gambling games under this Law and other laws) cannot participate in gambling games shall provide compensation to those individuals (as claimed by them or their family members) in the amount of ten times the financial damage (loss) caused as a result of such omission by that gambling organiser. Compensation procedures shall be established by the Competent Authority.

2. Information material (set out in the official language and translated into English) about gambling addiction and responsible play and, in particular, about the player age restrictions, chances of winning, principles of responsible play, and about the places where assistance can be received in the case of gambling addiction shall be made freely available to players and visitors at places where activities are carried out in the organisation and conduct of gambling games.

3. Gambling organisers shall provide players with information on the activities of organisations and treatment facilities and/or health workers that treat gambling addiction. The said information (contact details, a support telephone number) shall be available either in print form at places where the activities of organising and conducting gambling games are carried out or on the websites where activities in the organisation and conduct of gambling games are carried out on the Internet.

4. Gambling organisers shall, from time to time, brief staff on the principles of responsible attitude towards the relevant gambling games and the measures aimed at preventing gambling addiction. Information material about gambling addiction and responsible play and, in particular, about the player age restrictions, chances of winning, principles of responsible play, and about the places where assistance can be received in the case of gambling addiction shall be placed in gaming venues.

5. Participation in gambling games shall be restricted for an individual (by entering such individual into the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling):

1) by such individual — on written application (self-restriction application) filed by such individual with a gambling organiser or the Competent Authority, with his identity document to be presented at the same time;

2) by the Competent Authority — on reasonable application by first-degree family members or legal representatives (restriction application) — in the manner prescribed by this Article and for a period of up to six months;

3) by court order.

6. An individual may restrict himself from visiting gaming venues and participating in gambling games for a period of six months to three years by personally filing a written application (self-restriction application) with a gambling organiser or the Competent Authority, with his identity document to be presented at the same time.

Such application may be filed in writing or electronically in compliance with the requirements of the Ukrainian Law on Electronic Trust Services.

Self-restriction application forms shall be placed at a place accessible to players and visitors in each gaming venue.

A self-restriction application sample shall be placed on the main page of the official website of the Competent Authority.

No self-restriction application may be withdrawn.

7. A self-restriction application shall contain:

1) information on the family name, given name and patronymic (if any) of the applicant;

2) information on the family name, given name and patronymic (if any) of the individual in respect of whom the restriction is sought, and the details of the identity document (the document name, series (if any), number, date, the national issuing authority, the official name of the foreign issuing authority);

3) the period of refusal to visit gaming venues and participate in gambling games of other types;

4) the application date and the applicant’s personal signature (except where the application is filed in electronic form).

8. An application filed with any gambling organiser or the Competent Authority shall be deemed filed with all gambling organisers in Ukraine.

9. The gambling organiser or the Competent Authority shall immediately return the application to the individual for remedying any defects only if the individual in respect of whom the application was filed is not identifiable.

If the period for which the restriction on participation in gambling games is sought in the application filed is less than six months or if there is no such period, such application shall be deemed filed for a period of six months.

10. The Competent Authority may, on application by first-degree family members or legal representatives, and pending a court order, restrict a player from visiting gaming venues and participating in gambling games temporarily, but for not more than six months, if:

1) the game costs exceed the player's personal income, which puts the player or his family in a difficult financial situation;

2) there are debt obligations in excess of 100 times minimum subsistence level of income;

3) the individual evades paying child maintenance for more than three months;

4) the individual or his family members are recipients of a housing subsidy or housing and utility fee allowances.

If a restriction application is filed, it shall specify the reasons for such restriction.

11. The Competent Authority shall consider an application within five business days from the date of receipt of that application from first-degree family members or legal representatives and, if there are reasonable grounds, shall enter the information about the individual who is restricted from visiting gaming venues and participating in gambling games into the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling.

12. If a player harms himself and/or his family by participating in gambling games, which results in a difficult financial situation, such player may be restricted by court order from visiting gaming venues and participating in gambling games for a period of six months to three years.

13. A restriction application in relation to visiting gaming venues and participating in gambling games may be filed with a court by first-degree family members or legal representatives. The court’s order imposing a restriction on visiting gaming venues and participating in gambling games shall be delivered to the Competent Authority so that it could be entered into the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling.

14. The procedure for a court to restrict an individual from visiting gaming venues and participating in gambling games on application by first-degree family members or legal representatives shall be established by the Ukrainian Code of Civil Procedure. A valid court order imposing a restriction on visiting gaming venues and participating in gambling games shall be sent to the Competent Authority only by the court that made such order, so that it could be entered into the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling.

15. A gambling organiser or the Competent Authority shall enter the information on the individual who is restricted from participating in gambling games into the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling on or before the day following the date of receipt of the self-restriction application or the court order imposing a restriction on visiting gaming venues and participating in gambling games.

16. A gambling organiser shall take measures to ensure the safety of visitors and players in gaming venues, in particular by providing access to gaming venues after visitors and players have been checked with a metal detector.

17. The information on gambling organisers, gaming venues, the use of online systems, gambling organiser brands and other information specified in this Law shall be made available in the relevant public registers on the website of the Competent Authority, so that it could be freely accessible by the public, including for public control purposes.

18. The Competent Authority shall create a free hotline and a special form on the website of the Competent Authority to receive reports on violations of this Law and other gambling laws and regulations.

19. The Competent Authority shall approve a regulation for receiving, processing and responding to reports received regarding gambling violations, which regulation shall set out how such reports will be received and accepted, the ways of responding to such reports, including by engaging law enforcement agencies, and how replies will be given to such reports.

Article 17. Player and visitor identification (verification)

1. The identification (verification, data check) in respect of a player or visitor for the purposes of this Law shall involve the collection by a gambling organiser of information on:

1) the family name, given name and patronymic (if any) of such individual;

2) the age (date of birth) of such individual;

3) whether or not such individual is on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling.

2. The identification (verification, data check) in respect of a player or visitor shall be carried out by the gambling organiser’s employee by checking an original evidence of age and identity document during the first visit to the gaming venue, as well as before a bet is accepted via the Internet — by using the identification methods and/or other verification methods used in accordance with the personal data protection law and the gambling organiser rules.

3. Any secondary identification (verification, data check) in respect of a player or visitor may be carried out by checking the player identification card, in particular in electronic form, which was issued to such player or visitor by the relevant gambling organiser’s employee, or, in its absence, by checking an original identity document. A player's card shall always contain his photo and family name, given name and patronymic (if any), date of birth details and a special (unique) number of that card or a barcode that allows the information to be read by appropriate technical devices.

The Competent Authority shall approve a description of player identification card.

4. The identification (verification, data check) in respect of a player on the Internet shall be carried out by the gambling organiser by means of an electronic signature, SIM card that supports MobileID, BankID or other verification methods used in accordance with the law.

5. A gambling organiser may request additional documents from a player in accordance with the gambling organiser rules, such as the player's picture together with the requested document, or demand that video communication be used for the identification (verification, data check) in respect of that player on the Internet.

6. The identification (verification, data check) in respect of a player's age on the Internet shall be carried out by the gambling organiser before a bet is accepted.

7. A gambling organiser shall introduce procedures (policies) that allow the identification (verification, data check) in respect of a player's age to be accurate.

8. A gambling organiser shall comply with the personal data protection law during the identification (verification, data check) in respect of a player by means of an electronic signature, SIM card that supports MobileID, BankID or other verification methods.

9. A player shall be responsible for the authenticity of the documents provided and the accuracy of the information in accordance with the law.

Article 18. Player requirements

1. A player may only be an individual who has attained the age of 21 years as at the date of participation in a game. Gambling organisers may not accept bets or pay out (give) prizes in a gambling game to those under the age of 21.

2. Players may not be:

1) fully or partially incompetent;

2) under the age of 21;

3) subject to applicable restrictions in accordance with the law;

4) intoxicated with drugs or alcohol;

5) among those declared unwelcome by the gambling organiser;

6) on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling.

3. A player shall:

1) comply with the requirements and obligations provided for in this Law, the gambling laws, as well as in gambling organiser rules and gambling game rules;

2) present for inspection an identity document containing information on his age on request of an employee of a gambling organiser and/or an employee of the Competent Authority;

3) leave a gaming venue immediately on request of an employee of a gambling organiser and/or an employee of the Competent Authority, if he does any of the following acts:

a) refuse to present a document that allows him and his age to be identified;

b) disturb public order, use, or threat to use, physical force in an attempt to infringe on the life, health or property of those present in the gaming venue;

c) hinder any activities related to the organisation and conduct of gambling games;

d) violate gambling game rules.

4. The following persons may not participate in a gambling game:

1) founders (members, shareholders) or directors of a gambling organiser in which they are founders and/or hold executive positions;

2) representatives of any founders (members, shareholders) or directors of a gambling organiser in which they are representatives of a founder and/or hold executive positions;

3) persons who may have information about the outcome of the gambling game;

4) persons who are capable of influencing the outcome of the gambling game or the prize amount to be paid out (given);

5) athletes, members of supporting sports staff participating in a sports competition, sports officials and their family members — in a wager on the outcome of the official sports competition in which they or their team are participating;

6) Chair, members and officials of the Competent Authority, unless they are conducting an inspection through the test purchase method.

5. A gambling organiser shall provide those involved in anti-corruption with analytical information on any unusual conduct of players and on its suspicion of their potentially unfair play (conduct) in accordance with the Ukrainian Law on the Prevention of Corruption Offences from Influencing the Outcome of Official Sports Competitions.

6. The following persons may not be allowed to participate in a gambling game:

1) those who have not (as requested) presented an employee of a gambling organiser with an identity document containing information about their age, if such employee doubts that they have attained the age of 21 years;

2) those who have, at the request of a representative of a gambling organiser, provided untrue information about themselves (family name, given name and patronymic, age details, registered address of residence or domicile).

3) such other persons as specified in this Law;

4) fully or partially incompetent persons;

5) those on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling.

7. If a person participated in a gambling game despite the prohibition under this Law and/or the gambling game rules, such gambling game participation contract between the gambling organiser and such person shall be void.

No prize shall be paid out (given) under void contracts.

If a gambling organiser has paid out (given) a prize to such a person, the prize so paid out (given) shall be returned to that gambling organiser in full and within the time limits notified to such a person by the gambling organiser.

8. Where a bet must be refunded to an individual, the gambling organiser shall refund the amount of such bet to such individual or his legal representative within the period specified in the relevant gambling game rules.

9. A player may restrict himself from participating in gambling games on the Internet by setting personal limits on the amount such person is willing to spend on a gambling game.

10. A bet made by an individual in a gambling game shall constitute a gambling game participation contract between that individual and the gambling organiser conducting the gambling game. A gambling game participation contract shall be deemed made with effect from the time the gambling organiser accepts the bet from the individual in a gambling game.

11. A gambling organiser may raise the minimum player age for a gambling game.

Article 19. Visitors and employees of a gambling organiser: Requirements

1. Those under the age of 21 at the time of a visit and those on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling may not visit a gaming venue.

2. Those under the age of 21 at the time of commencement of employment may not be employed with a gambling organiser or otherwise engaged in services to gambling organisers.

3. A visitor to a gaming venue shall:

1) comply with the requirements and obligations provided for in this Law, the gambling laws and gambling organiser rules;

2) present for inspection an identity document containing information on his age on request of an employee of the gambling organiser;

3) leave the gaming venue immediately on request of an employee of the gambling organiser, if he does any of the following acts:

a) refuse to present a document that allows him and his age to be identified;

b) disturb public order, use, or threat to use, physical force in an attempt to infringe on the life, health or property of those present in the gaming venue;

c) hinder any activities related to the organisation and conduct of gambling games.

4. Any persons carrying cold weapons or firearms, other than security guards in a gaming venue or hotel, or any persons carrying explosives, explosive devices or ammunition of all types and designs, training or simulation ammunition, highly flammable liquids or flammable solids or fireworks shall not be allowed in gaming venues.

Article 20. Gambling game rules: Requirements

1. Gambling game rules shall contain provisions prohibiting those who are under 21 years of age, fully or partially incompetent persons or those on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling from participating in a gambling game.

2. Gambling game rules written both in the official language and in English shall be placed at a place accessible to visitors and players in gaming venues or on a website or in a mobile application if the gambling organiser carries out licensed activities on the Internet.

3. Gambling game rules shall be written both in the official language and in English (and may be written in other languages at the option of the gambling organiser) and shall be numbered, bound, signed by an authorised person of the organiser and sealed with the organiser’s seal (if any).

4. Gambling game rules may not be in conflict with the law.

5. Gambling game rules shall contain procedures for participation in each gambling game organised and conducted by the organiser.

6. The rules of each gambling game shall contain detailed procedures for participation in the gambling game concerned, such as procedures and time limits for making bets and paying out (giving) prizes, and the rights and obligations of a player and the gambling organiser during the gambling game.

Article 21. General visiting rules for a gaming venue

1. Visiting rules for a gaming venue shall be set by the gambling organiser.

2. Visiting rules for a gaming venue shall be written both in the official language and in English, numbered, bound, signed by an authorised person of the organiser and sealed with the organiser’s seal (if any).

3. Visiting rules for a gaming venue shall specify, inter alia, the opening hours of that gaming venue and that those who are under the age set out in this Law or are subject to the restrictions provided by this Law may not visit the gaming venue.

Article 22. Gaming equipment requirements

1. The Competent Authority shall provide an exclusive list of certifiable gaming equipment. Non-certified gaming equipment which is required by the Competent Authority to be certified may not be used.

2. The certification entities listed by the Competent Authority shall certify and inspect gaming equipment for conformity to applicable technical requirements (standards) in a prescribed manner. 

Gaming equipment may not be certified and inspected by a certification entity that is a resident of a foreign country declared an occupying state and/or aggressor state in relation to Ukraine in accordance with the law or that is directly or indirectly controlled by, or is acting in the interests of, residents of such a foreign country.

3. Gaming equipment shall be located solely within gaming venues (within special gaming areas). No gaming equipment may be located outside gaming venues (special gaming areas), except where a gambling organiser separately stores any out-of-service or backup equipment.

This prohibition shall not apply to gaming equipment used by gambling organisers to organise and conduct gambling games on the Internet. 

4. Each piece of gaming equipment located in a gaming venue (other than gaming tables, including roulette wheel gaming tables) shall be connected to the gambling organiser’s online system that shall be connected to the State Online Monitoring System via communication channels and shall ensure that information is transmitted to the State Online Monitoring System, whether in real time or directly.

Gaming machines located in a gaming venue shall be owned by the gambling organiser and connected to the State Online Monitoring System or to the gambling organiser’s online system that shall be connected to the State Online Monitoring System via communication channels. 

Gaming equipment (other than gaming tables, including roulette wheel gaming tables) shall be connected to the State Online Monitoring System:

1) within ten days of a licence being obtained — in the case of the first connection of a new gambling organiser to the State Online Monitoring System (for online systems of gambling organisers);

2) at or before the time a licence for gaming equipment (a gaming machine) is obtained.

5. A certificate of conformity to the standards shall be issued by a certification entity that provides gaming equipment certification services.

6. A manufacturing number, year of manufacture, data on modification and repair (if any), and the manufacturer’s name shall be specified on each gaming machine’s body.

The overall prize percentage (to be theoretically returned to a player) shall be specified on the front side of each gaming machine’s body.

The manufacturing number of a gaming machine shall make it possible to receive the following information on the official website of the Competent Authority:

1) details of the licence to organise and conduct gambling games, under which the gaming equipment is used;

2) information on the licensed gambling organiser;

3) the location of the gaming parlour that must host the gaming equipment;

4) such other information as specified in this Law.

7. Any component (equipment) that is not to be used, according to the user documentation, or any component that has not been certified by a certification entity and is likely to affect the operation of gaming equipment may not be connected to such gaming equipment.

8. No gaming equipment may be altered or modified, unless the manufacturer of such gaming equipment approves the same or unless doing so is permitted by the technical and software documentation for the gaming equipment.

Any component (equipment) that is not to be used, according to the user documentation, may not be connected to gaming equipment, except for a connection to a gambling organiser’s online system or the State Online Monitoring System.

9. Gaming machines may not be used where the overall prize percentage (to be theoretically returned to a player) is below ninety (90) per cent.

10. Any gaming equipment that allows a prize percentage to be set mechanically may not be used.

11. Any non-certified gaming machines or any gaming machines manufactured before 2019 may not be used.

Any gaming machines manufactured (supplied) by residents of a foreign country declared an aggressor state and/or occupying state in accordance with the law may not be used.

A gaming venue may only use gaming machines without a bill acceptor.

12. A gaming venue may only use gaming equipment that makes either any unauthorised interference in its operation or any creation of conditions for a predetermined outcome of a gambling game impossible.

13. A gambling organiser shall ensure that gaming equipment is certified and inspected by the certification entities which the Competent Authority included on the list of certification entities.  

14. All gaming machines shall be equipped with random number generators that produce random and independent game results and make it impossible to predict the outcome of a future game based on the outcome of previous games. Random number generators in gaming machines shall work at all times, whether a gaming machine is used in a game or not.

Random number generators and the random selection process shall be protected from outside influence, particularly from electromagnetic, electrostatic or radio frequency interference.

15. Gaming machines shall use secure communication protocols to protect the random number generator and the random selection process from being influenced by connected equipment with which the data are exchanged.

16. No changes may be made to the design of certified gaming equipment that are not provided for in the design, technological and software documentation of the manufacturer.

17. Gaming equipment software shall be licensed and certified as conforming to national or international standards.

Article 23. A gambling organiser’s online system: Requirements

1. An online system of a gambling organiser shall ensure that each transaction of accepting a bet, paying out a prize or making a payout and other transactions made in connection with the organisation and conduct of gambling games are recorded and that data are protected from loss, distortion, forgery, destruction, copying, unauthorised access or any other outside (unauthorised) interference in such online system of such gambling organiser.

2. An online system of a gambling organiser shall be connected to the State Online Monitoring System via communication channels as required by this Law.

3. An online system shall ensure that bets are accepted and that data are protected from loss, distortion, forgery, destruction, copying, unauthorised access or any other outside (unauthorised) interference in such online system. The hardware of an online system for organising gambling games, through which the services are provided, shall be located in Ukraine only. Any information in the online system shall be processed in Ukraine only. 

4. A gambling organiser shall ensure that its online system is certified and inspected by the certification entities which the Competent Authority included on the list of certification entities.

Article 24. The organisation and conduct of gambling games on the Internet: Special requirements

1. A gambling organiser shall organise and conduct gambling games on the Internet under a gambling organiser brand and under a relevant licence in compliance with this Law and the gambling laws and through online systems of gambling organisers that meet the requirements of this Law.

2. A gambling organiser may carry out its activities on the Internet through a website with a .UA domain name and/or through mobile applications running on various operating systems that meet the requirements of this Law. The register shall specify the address of the website, through which the activities related to the organisation and conduct of gambling games are carried out.

3. A gambling organiser that is licensed to operate on the Internet may accept bets from persons who are in or outside Ukraine and are not on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling, in compliance with this Law and other laws and regulations.

4. An Internet gambling organiser may conduct its activities through a website, after having notified the Competent Authority of the .UA domain name it intends to use during the organisation and conduct of gambling games. 

A gambling organiser's website shall belong to that gambling operator as its rightful owner or rightful user.

5. An Internet gambling organiser shall ensure that the following accurate information (set out in the official language and in other languages, at such Internet gambling organiser’s option) is available on the website:

1) the gambling organiser’s full name as set out in its constituent documents;

2) the gambling organiser’s place of business as specified in its registrations and in the information on its actual place of business;

3) the gambling organiser’s identification code;

4) the licence details (the number (if any), the date and number of the decision, and the licence term);

5) the gambling organiser rules and the gambling game rules;

6) how and when prizes are paid out (given);

7) information on the mobile applications and other gaming equipment used by the gambling organiser;

8) information on the gambling organiser’s maintenance and technical support team;

9) information material about gambling addiction and responsible play, the ways of helping people suffering from gambling addiction, and the contact details of medical centres that treat gambling addiction;

10) a notice that those under the age of 21, fully or partially incompetent persons and those on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling may not participate in gambling games;

11) information on the overall prize percentage (to be theoretically returned to a player).

6. Any mobile applications or other gaming equipment designated for participation in gambling games shall give players access to the information specified in paragraph five of this Article.

7. Any websites, mobile applications and/or other gaming equipment may be distributed, made accessible, offered for download or otherwise dispersed in Ukraine, unless such websites, mobile applications and/or other gaming equipment give access to data servers or databases regarding those who are not gambling organisers under this Law.

8. A player shall himself create a player customer account (personal account) in an online system of a gambling organiser.

9. Any bet payments, any refunds of money paid by players to participate in gambling games on the Internet and any prize payouts to players shall be made by wire transfer through an online system of an Internet gambling organiser, subject to the provisions of this Law and the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing.

10. A player placing a bet shall be deemed to have agreed with the gambling game rules.

11. An Internet gambling organiser shall ensure the protection of information about players in the manner prescribed by law.

12. An Internet gambling organiser shall ensure that real-time information is available on the website, in particular by placing a clock that displays the current time on each webpage.

13. An Internet gambling organiser may not give a player an opportunity to play on credit or on instalment payments or on promise to pay, except where a bet is paid with a credit or debit card and such payment is authorised.

Article 25. Restrictions on those carrying out activities in the organisation and conduct of gambling game on the Internet in breach of this Law

1. A person who organises, conducts or gives access to gambling games through a website without a relevant licence shall, on request of the Competent Authority, restrict access to such website in or from Ukraine within a period of not more than three business days.

2. The provider of hosting (information storage) services whose equipment hosts a website (or a part thereof) that is used to organise, conduct or give access to gambling games without a relevant licence shall, on request of the Competent Authority, restrict access to such website (or such part thereof) in or from Ukraine.

3. The Competent Authority shall determine how the requests specified in paragraphs one and two of this Article will be sent and met.

4. Any bank carrying on banking business in Ukraine or any payment systems operating in Ukraine shall reject payments to any persons that organise and conduct gambling games without a relevant licence in Ukraine or that provide access services in respect of such gambling games.

SECTION IV

THE ORGANISATION AND CONDUCT OF CASINO GAMBLING GAMES

Article 26. Special gaming areas for the organisation and conduct of gambling games in casino gaming venues

1. Gambling games in casino gaming venues may be organised and conducted only within special gaming areas under a licence to organise and conduct gambling games in casino gaming venues.

2. One licence to conduct gambling games in casino gaming venues shall permit one casino venue to operate.

3. The following shall be deemed a special gaming area for casino gaming venues:

1) five-star hotels (a building or a complex of buildings) with a room capacity of at least one hundred and fifty (150), for Kyiv;

2) five-star and/or four-star hotels (a building or a complex of buildings) with a room capacity of at least one hundred (100), for other populated areas;

3) an out-of-town entertainment complex — a real property situated outside a town or city and consisting of two or more buildings and structures with a total area of at least 10 thousand square metres and required to have a five-star hotel;

4) a special territorial gaming area set up by resolution of the Ukrainian Cabinet of Ministers.

4. A special territorial gaming area set up by resolution of the Ukrainian Cabinet of Ministers may be:

1) an area within the customs territory of Ukraine, but outside populated areas;

2) an area within populated areas, but outside residential areas;

3) an area that needs further stimulation for its social and economic development;

A special territorial gaming area set up by resolution of the Ukrainian Cabinet of Ministers may host casinos in separate buildings if the area of a casino gambling venue is above 10 thousand square metres.

No more than five special territorial gaming areas may be set up in Ukraine by resolution of the Ukrainian Cabinet of Ministers.

5. Where individual investment projects related to the organisation and conduct of casino gambling games are implemented by resolution of the Ukrainian Cabinet of Ministers, the provisions in paragraph three of this Article shall not apply. For the purposes of this paragraph, gambling games shall be organised and conducted under an investment licence.

6. An investment licence to organise and conduct casino gambling games shall also be granted by the Competent Authority, provided that the applicant builds a five-star hotel complex with a room capacity of at least two hundred (200) (in Kyiv) or one hundred and fifty (150) (in other cities or towns) and shall authorise gambling games to be organised and conducted in casino gaming venues located in such hotel complex. 

7. No fee shall be charged for an investment licence. The term of an investment licence shall be ten years.

Licence fees for a roulette wheel gaming table, for a gaming table, other than a roulette wheel gaming table, and licence fees for a gaming machine shall be set in accordance with Article 52 of this Law if an investment licence is obtained.

8. The class of a hotel shall be evidenced by a certificate of classification in respect of such hotel.

Article 27. Special duties of a casino gambling organiser

1. A casino gambling organiser shall prevent:

1) knowingly misleading information from being provided regarding the organisation and conduct of gambling games and the outcome of a game;

2) assistance in winning;

3) interference in the game process (except as otherwise provided for in the gambling game rules).

2. A casino organiser may conduct poker games and other casino gambling games in a casino gaming venue. Gambling games similar to a lottery, including the acceptance of bets on the outcome of lotteries, shall not be allowed.

3. In the course of its activities, a casino gambling organiser shall ensure that the following documents (or their copies) are kept in a casino gaming venue: documents regarding the right to own or use the premises (a certificate of title, sale and purchase agreement, lease agreement etc), within which gambling games are organised and conducted in such casino gaming venue, gaming equipment documents and relevant certificates.

Article 28. Casino gaming venue requirements

1. A casino organiser shall commence its activities of organising and conducting gambling games in a casino gaming venue after a licence to organise and conduct gambling games in a casino gaming venue has been obtained.

2. A casino organiser shall ensure that the quantity of the gaming equipment hosted is at least:

1) ten gaming tables, including at least two roulette wheel gaming tables, and at least 50 gaming machines, if a casino gaming venue is located in a special gaming area within populated areas with a population above 500 thousand;

2) five gaming tables, including at least one roulette wheel gaming table, and at least 20 gaming machines, if a casino gaming venue is located in a special gaming area within a populated area with a population below 500 thousand or outside populated areas.

3. The number of employees employed in a casino gaming venue under an employment contract with the casino organiser shall be at least fifty (50).

4. A gambling organiser operating a casino gaming venue that is located in a separate building within a special territorial gaming area set up by resolution of the Ukrainian Cabinet of Ministers shall host:

gaming equipment consisting of at least twenty gaming tables, including at least four roulette wheel gaming tables, and at least two hundred and fifty (250) gaming machines;

a catering establishment.

The number of employees employed in such a gaming venue under an employment contract with the casino organiser shall be at least two hundred (200).

5. The opening hours of a casino gaming venue and of any facilities located therein shall be determined by the casino organiser at its discretion, but in compliance with laws on public safety and order, normal (ordinary) living conditions for those who live in an area adjacent or close to a special gaming area, as well as in compliance with rules and regulations applicable to maximum levels of acoustic noise and electromagnetic radiation.

6. Gaming hryvnia substitutes (gaming tokens or chips) shall be used to participate in gambling games in a casino gaming venue. A casino gaming venue may not accept money, things of value or other property as bets.

7. Each gaming hryvnia substitute shall be equipped with a special device (chip etc) which (when read) enables the face value of such gaming hryvnia substitute and the location of the casino in which it is used (circulates) to be identified.

8. The minimum area of hosting premises for a casino gaming venue located in in a five-star hotel building shall be at least 500 square metres. A casino gaming venue area shall be separated to prevent any uncontrolled entry of visitors without them being identified.

9. A casino gambling organiser shall equip the premises of a casino gaming venue with a security alarm system and video surveillance systems and shall ensure the storage of video recordings. The security alarm and permanent video surveillance system requirements and the video storage time shall be set out by the Ukrainian Cabinet of Ministers in applicable business licence conditions.

Article 29. Accepting money, paying out (giving) prizes, and refunding money paid by players to participate in gambling games in casino gaming venues

1. Money shall be accepted, money paid by players to participate in gambling games in casino gaming venues shall be refunded, money shall be exchanged for gaming hryvnia substitutes, and prizes shall be paid out (given) (within maximum amounts allowed by the Ukrainian National Bank for cash payments), in each case, only via cash desks in compliance with statutory requirements applicable to the use of cash registers.

A prize exceeding maximum amounts allowed for cash payments shall be paid out to a player by wire transfer.

2. A prize shall be paid out (given) in the manner and within the time specified in the gambling game rules and in compliance with the requirements of the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing, which time may not exceed thirty (30) days from the date of the player's claim.

3. A player may be refused to be paid (given) a prize and to be paid a refund of the money paid by such player to participate in a gambling game if there are grounds provided for in the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing.

4. Any information and notice regarding the time within which a prize will be paid out (given) shall be as determined by the rules of a casino organiser and shall be communicated to players before a game begins by placing the notice at such place near the casino’s cash desk which is accessible to players.

Article 30. The organisation and conduct of casino gambling games on the Internet: Special requirements

1. An Internet casino gambling organiser shall organise and conduct casino gambling games on the Internet under a relevant licence and in compliance with the this Law and the gambling laws and shall at all times use such gambling organiser’s online system for those purposes.

2. An Internet casino gambling organiser may not organise and conduct any casino gambling games, other than those mentioned in this Law and otherwise than through the website specified in the register.

3. An Internet casino gambling organiser may not conduct poker games on the Internet or online poker tournaments without having obtained a licence to organise and conduct poker games on the Internet. 

4. Gambling games similar to a lottery, including the acceptance of bets on the outcome of lotteries, shall be prohibited.

5. Any bet payments, any refunds of money paid by players to participate in gambling games on the Internet and any prize payouts to players shall be made by wire transfer, subject to the provisions of this Law.

6. Internet casino gambling organisers may not provide telecommunication services or any equipment for the organisation and provision of equipped space to third parties for access to the Internet (Internet clubs, Internet cafés etc).

SECTION V

THE ORGANISATION AND CONDUCT OF BETTING ACTIVITIES

Article 31. The organisation and conduct of betting activities

1. Betting activities shall be carried out only under a betting licence in Ukraine.

2. Betting organisers shall carry out their activities in compliance with this Law and other laws and regulations applicable to betting activities.

3. A betting organiser may accept bets on the outcome of events. Bets may not be accepted on the outcome of virtual games or events that are created, or the outcome of which is determined, by a random number generator.

4. Betting organisers may not:

1) conduct any wagers, other than those provided for in either bookmaker wager rules or totalisator wager rules (wagering rules);

2) carry out betting activities without a licence;

3) offer (as or instead of a prize) any alcohol, beer, low-alcohol beverages, table wine, tobacco products or other property, the possession or disposal of which requires appropriate permits or licences;

4) force visitors to participate in a wager;

5) accept bets (conduct wagers) on events and/or games that are similar to a lottery or accept bets on the outcome of lotteries in Ukraine and/or other countries;

6) accept bets (conduct wagers) on virtual events and/or virtual games, including accept bets on virtual events;

7) accept bets (conduct wagers) on events, the outcome of which is determined by a random number generator or other equipment with software capable of generating a sequence of unrelated numbers.

5. Bets may not be accepted on events that potentially infringe on the national sovereignty and territorial integrity of Ukraine, public morals and ethics, or constitutional human rights.

6. Betting activities may not be carried out with the purpose of concealing (imitating) any of the other gambling games provided for in this Law.

Article 32. Duties of a betting organiser

1. In the course of its activities, a betting organiser shall:

1) carry out only those types of wagers that satisfy the requirements of this Law, after obtaining a relevant licence, and shall comply with bookmaker wager rules or totalisator wager rules (wagering rules) and applicable statutory requirements;

2) refrain from acts that are likely to influence the outcome of wagers (such restriction shall not apply to public announcement and payment of additional cash compensation to athletes participating in national or international competitions, Olympic or Paralympic Games);

3) create conditions for:

a) having players and visitors acquainted with either information on the decision to grant the betting licence (the date and number of such decision, and the licence term) or its certified copy, bookmaker wager rules or totalisator wager rules (wagering rules);

b) having all players comply with wager terms and conditions in accordance with the wagering rules approved by such betting organiser;

c) having players and visitors acquainted with a list (line) of events on which bets are accepted;

d) having players and visitors acquainted with the outcome of events;

4) perform such other duties as set out in this Law and the gambling laws.

Article 33. Restrictions that may be applied by a betting organiser

1. A betting organiser may, in compliance with this Law, bookmaker wager rules or totalisator wager rules (wagering rules) of that betting organiser and wagering rules, apply the following restrictions in its relations with players and/or visitors:

1) delete, if necessary, an event from a list (line) of events, with bets made by players to be refunded;

2) refuse to pay out a prize to a non-player who is not entitled to such prize or a bet;

3) refuse to pay out a prize and refund a player's bet if there are grounds provided for in the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing;

4) prohibit or restrict access to a betting outlet or website for a player and/or visitor, if such person disturbs public order or hinders wagers or bets from being made or placed or is reasonably suspected of using methods, technologies, software or techniques that are likely to influence a winning outcome or hinders prizes from being paid out, violates bookmaker wager rules or totalisator wager rules (wagering rules), insults the honour and dignity of visitors, participants, representatives of the betting organiser or third parties, refuses to present a document allowing his age to be accurately identified or does any other acts that interfere with the normal activities of the betting organiser.

2. Other restrictions may be set out in bookmaker wager rules or totalisator wager rules (wagering rules).

3. Wager rules shall contain procedures for how wagers are made between either the betting organiser and a player or players themselves.

4. Wager rules shall be made available at a betting outlet and on a website or in a mobile (software) application of the betting organiser if betting activities are carried out on the Internet.

3. A reasonable suspicion (as referred to in Article 33(1)(4) of this Law) setting out the facts regarding such suspicion shall be served on the player in writing or electronically within one day.

Article 34. Accepting and refunding bets and paying out prizes as a result of a wager

1. Transactions of accepting and refunding bets in a wager and transactions of paying out prizes in a wager shall be carried out only through betting outlets, mobile applications or a website of a betting organiser in the national currency, and such transactions shall at all times be recorded in an online system.

2. Transactions of accepting and refunding bets in a wager and transactions of paying out prizes in a wager may not be carried out, unless a relevant transaction is recorded in an online system that a betting organiser is required to use.

3. When receiving a prize or a bet to be refunded at a betting outlet, a player shall present an identity document or another document in accordance with the identification (verification) rules provided for in this Law and the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing.

4. It shall be prohibited to pay out a prize or its equivalent or to refund to a bet to any third parties, including any persons in whose favour a player offers to make a payout or refund. Such restriction shall not apply where a refund is requested in the case of a bet made by a person who is under the age of 21 or is incompetent or is restricted in his civil capacity, provided that the refund is requested by a legal representative of such person.

5. A prize shall be paid out, or a bet shall be refunded, within the time determined by the betting organiser’s rules, which time shall not, however, exceed ten business days from the date the recipient of either the prize payout or the bet to be refunded is determined.

6. A betting organiser may extend the time referred to in paragraph five of this Article, but for not more than ten business days, and notice of such extension shall always be given to the player to whom the prize is to be paid out or the bet is to be refunded, with the reasons for such extension and the time within which the payout or refund will be made to be specified.

Article 35. Forms of betting activities

1. Betting activities may be carried out only:

1) at betting outlets;

2) on the Internet.

2. Betting activities may not be carried out otherwise than in compliance with this Law or in any way not expressly permitted by this Law.

Article 36. Betting activities at betting outlets

1. Betting organisers may carry out betting activities only at betting outlets located in a special gaming area and under a betting licence in accordance with this Law.

2. The following shall be deemed a special gaming area for locating betting outlets:

1) buildings that host three-star, four-star or five-star hotels with a room capacity of at least fifty (50), for Kyiv;

2) buildings that host three-star, four-star or five-star hotels with a room capacity of at least twenty-five (25), for other populated areas;

3) racecourses.

3. Betting outlets of a betting organiser shall be located in a special gaming area, and the premises of a betting outlet shall have a total area of at least fifty (50) square metres.

4. Betting outlets of a betting organiser may not be located:

1) directly on the premises where state or local authorities are located;

2) directly on the premises of preschool educational establishments, general secondary educational establishments, out-of-school, specialised, higher educational and other educational establishments, including where hostels of such establishments are located;

3) directly on the premises of cultural institutions, including libraries, museums, theatres and exhibition galleries;

4) directly on the premises of healthcare facilities;

5) directly on the premises of specialised children's entertainment centres;

6) directly on the premises of religious buildings and structures or on premises that belong to religious organisations;

7) on housing premises or other residential building premises, including apartment buildings;

8) in projects under construction, kiosks, open sheds or mobile small architecture or other temporary structures used for carrying on business.

5. A betting organiser shall have, as its rightful owner or rightful user, such online system at betting outlets which shall meet the following requirements:

1) there is a mechanism to record any acceptance, calculation and payout of prizes in a wager made;

2) there is a list (line) of events offered for wagering;

3) there are methods to protect the personal data of a player;

4) there are methods to protect an online system from unauthorised outside interference by persons;

5) an inspection by a certification entity that the Competent Authority included on the list of certification entities has been passed.  

6. Betting organisers shall equip the premises of a betting outlet with a security alarm system.

7. Betting organisers shall equip the premises of a betting outlet with, and shall use appropriate signs to inform visitors of, video surveillance and audio recording systems and shall ensure the storage of video recordings. The security alarm and video surveillance system requirements and the video storage time shall be set out in licence conditions by the Ukrainian Cabinet of Ministers.

8. The opening hours of a betting outlet shall be determined by the betting organiser at its discretion, but in compliance with laws on public safety and order, normal (ordinary) living conditions for those who live in an area adjacent or close to such betting outlet, as well as in compliance with rules and regulations applicable to maximum levels of acoustic noise and electromagnetic radiation.

9. Information on the decision to grant the betting licence (the date and number of such decision, and the licence term), details of the relevant betting outlet licence, bookmaker wager rules or totalisator wager rules (wagering rules), the opening and working hours of a betting outlet, as well as information material about gambling addiction and responsible play, shall be placed at a place accessible to players and visitors where betting outlets of a betting organiser are located.

10. Betting outlets of a betting organiser may accept bets, pay out prizes and make payouts in cash and by wire transfer in accordance with the law.

No equipment may be installed at a betting outlet to enable a player to make a bet, check a bet, receive a prize, etc himself and without the betting organiser’s employee being involved.

11. Any gaming equipment that gives access to, reproduces or independently creates (generates) virtual (artificial) events or games, including by means of a random number generator, may not be installed at betting outlets, nor may they accept bets on such events or games.

12. Betting outlets may be located on racecourse premises with the purpose of organising and conducting gambling horse-sports games (competitions) according to bookmaker wager rules or totalisator wager rules (wagering rules). A racecourse may conduct totalisator wagers on competitions held at that racecourse, after a relevant licence has been obtained from the Competent Authority.

Article 37. Betting activities on the Internet

1. A betting organiser shall carry out betting activities on the Internet in compliance with this Law and other legislation and solely by using such betting organiser’s online system that meets the requirements of this Law.

2. A betting organiser may carry out its activities on the Internet through an online system using a website (specified in the relevant register) and mobile applications for accepting bets, paying out prizes and making wager payouts.

3. A betting organiser operating on the Internet shall be a rightful owner or user of an online system that shall meet the following requirements:

1) there is a mechanism to record any acceptance, calculation and payout of prizes in a wager made;

2) there is a list (line) of events offered for wagering;

3) there is a method to identify a player and his age;

4) there are methods to protect the personal data of a player;

5) there are methods to protect an online system from unauthorised outside interference by persons;

6) an inspection by a certification entity that the Competent Authority included on the list of certification entities has been passed.  

4. A betting organiser carrying out its activities on the Internet may accept bets from persons in or outside Ukraine in compliance with this Law and other laws and regulations.

5. A betting organiser may operate on the Internet through a website after having notified the Competent Authority of the domain name that it will use for betting activities.

6. A betting organiser or its founder (member) that directly or indirectly controls such organiser shall be a rightful owner or user of such betting organiser’s website and domain name.

7. A betting organiser carrying out its activities on the Internet shall ensure that the following accurate information in the official language (and in other languages, at such betting organiser’s option) is available on its website regarding:

1) the betting organiser’s full name as set out in its constituent documents;

2) the betting organiser’s place of business;

3) the betting organiser’s identification code;

4) the decision to grant the licence (the date and number of the decision, and the licence term);

5) bookmaker wager rules or totalisator wager rules (wagering rules);

6) how and when prizes are paid out;

7) the mobile applications and other gaming equipment used by the betting organiser;

8) the gambling organiser’s maintenance and technical support team;

9) information material about gambling addiction and responsible play;

10) a notice that those under the age of 21 may not participate in wagers.

8. Any mobile applications or other software and hardware designated for participation in wagers shall give players access to the information specified in paragraph seven of this Article.

9. A player shall himself create a player customer account (personal account) in an online system of a betting organiser by filling out a relevant registration form.

SECTION VІ

THE ORGANISATION AND CONDUCT OF GAMING MACHINE GAMES

Article 38. The organisation and conduct of gaming machine games

1. Gaming machine games may be organised and conducted only in gaming machine venues based in special gaming areas and under a licence to organise and conduct gaming machine games and licences for each gaming machine in accordance with this Law.

2. The following shall be deemed a special gaming area for locating gaming machine venues:

1) three-star, four-star and five-star hotels (a building or a complex of buildings) with a room capacity of at least fifty (50), for Kyiv;

2) three-star, four-star and five-star hotels (a building or a complex of buildings) with a room capacity of at least twenty-five (25), for other populated areas.

3. Gaming machine venues shall be deemed one or more non-residential premises (or a part thereof) with a total area of at least three hundred (300) square metres that are located at the same address within three-star, four-star and five-star hotels (a building or a complex of buildings).

4. Gaming machine venues may not be located:

1) directly on the premises where state authorities, other government agencies or local authorities are located;

2) closer than 500 metres from preschool educational establishments, general secondary educational establishments, out-of-school, specialised, vocational (vocational and technical) educational and pre-higher professional educational establishments;

3) directly on the premises of religious buildings and structures and on premises that belong to religious organisations;

4) on housing premises or other residential building premises, including apartment buildings;

8) in projects under construction, kiosks, open sheds or mobile small architecture or other temporary structures used for carrying on business.

9) in populated areas with a population below ten thousand (10,000).

5. The class of a hotel shall be evidenced by a certificate of classification in respect of such hotel.

6. Smoking, including electronic cigarettes, shall be prohibited in gaming machine venues. Those intoxicated with alcohol, drugs or toxic substances shall not be allowed to play gaming machines.

Article 39. Duties of a gaming machine gambling organiser

1. A gaming machine gambling organiser shall:

1) equip the premises of a gaming machine venue with a security alarm system and video surveillance systems and shall ensure the storage of video recordings. The security alarm and video surveillance system requirements and the video storage time shall be set out in licence conditions;

2) a gaming machine gambling organiser shall prevent the following events:

a) knowingly misleading information is provided regarding the organisation and conduct of gambling games and the outcome of a game;

b) assistance in winning;

c) interference in the game process.

3) perform such other duties as set out in this Law and the gambling laws.

2. A gaming machine gambling organiser may not offer tobacco products to visitors or players.

Article 40. Gaming machine venue: General requirements

1. A gaming machine gambling organiser shall commence its activities of organising and conducting gambling games in a gaming machine venue after a licence to organise and conduct gambling games in gaming machine venues and licences for each gaming machine have been obtained in accordance with this Law.

2. One licence to organise and conduct gambling games in gaming machine venues shall permit gaming machine venues that meet the requirements of this Law to operate and to host 250 gaming machines.

3. A gaming machine gambling organiser shall ensure that the quantity of gaming machines hosted in one gaming machine venue is at least 50.

4. The opening hours of a gaming machine venue and of any facilities located therein shall be determined by the organiser at its discretion, but in compliance with laws on public safety and order, normal (ordinary) living conditions for those who live in an area adjacent or close to such gaming machine venue, as well as in compliance with rules and regulations applicable to maximum levels of acoustic noise and electromagnetic radiation.

5. No gaming machine hosted in a gaming machine venue shall be visible from the outside of the building.

Article 41. Accepting money, paying out (giving) prizes, and refunding money paid by players to participate in gambling games in gaming machine venues

1. Money paid by players to participate in gambling games in gaming machine venues shall be accepted and refunded and prizes shall be paid out (given), in each case, only at cash desks in compliance with statutory requirements applicable to the use of cash registers and the carrying out of national currency cash transactions.

2. A prize shall be paid out and money paid to participate in a gambling game shall be refunded to a player, on such player’s first demand, subject to the restrictions set out in the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing, but within thirty (30) days from the date of the player's claim.

SECTION VII

THE ORGANISATION AND CONDUCTION OF POKER GAMBLING GAMES

Article 42. The organisation and conduction of poker gambling games on the Internet

1. Poker gambling games on the Internet shall be organised and conducted only under a licence to organise and conduct poker gambling games on the Internet.

2. Internet poker gambling organisers shall carry out their activities in compliance with this Law, the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing, and other laws and regulations.

3. An Internet poker gambling organiser may not:

1) conduct any poker games and/or poker tournaments, other than those provided for in such poker organiser’s rules;

2) carry out activities without a licence;

3) offer (as a prize) any alcohol, beer, low-alcohol beverages, table wine, tobacco products or other property, the possession or disposal of which requires appropriate permits or licences;

4) force visitors to participate in a poker game.

4. An Internet poker organiser shall operate only through such poker organiser’s online system that meets the requirements of this Law.

5. An Internet poker organiser may carry out its activities on the Internet by using a website (specified in the relevant register) and/or mobile applications running on various operating systems.

6. An Internet poker organiser may accept bets from persons in or outside Ukraine in compliance with this Law and other laws and regulations.

7. Internet poker organisers may not provide telecommunication services or any equipment for the organisation and provision of equipped space to third parties for access to the Internet (Internet clubs, Internet cafés etc).

Article 43. Restrictions that may be applied by an Internet poker organiser

1. An Internet poker organiser may, in compliance with this Law, the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing, and poker game rules, apply the following restrictions in its relations with players and/or visitors:

1) refuse to pay out a prize to a non-player who is not entitled to such prize or a bet;

2) refuse to pay out a prize and to refund a player's bet if there are grounds provided for in the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing;

3) prohibit or restrict access to a website for a player and/or visitor if such person disturbs public order or hinders a poker game from being conducted or bets from being placed or is reasonably suspected of using methods, technologies, software or techniques that are likely to influence a winning outcome or hinders prizes from being paid out, violates poker game rules, insults the honour and dignity of players, visitors, participants, representatives of the poker organiser or third parties, refuses to present a document allowing his age to be accurately identified or does any other acts that interfere with the normal activities of the poker organiser.

2. Other restrictions may be set out in the rules of an internet poker organiser.

SECTION VIII

LICENSING THE ORGANISATION AND CONDUCT OF GAMBLING GAMES

Article 44. Types of licences

1. The following licences shall be granted for the organisation and conduct of gambling games:

1) licence to organise and conduct gambling games in casino gaming venues;

2) licence to organise and conduct casino gambling games on the Internet;

3) licence to organise and conduct betting activities;

4) licence to organise and conduct gambling games in gaming machine venues;

5) licence to organise and conduct poker gambling games on the Internet;

6) gaming table and/or roulette wheel gaming table licence;

7) betting outlet licence;

8) gaming machine licence;

9) gambling service licence;

10) racecourse totalisator wager licence;

11) investment licence.

2. A licence authorises only one gambling organiser brand to be used in accordance with the rules set out in this Law.

Article 45. Licensing powers of the Competent Authority

1. The Competent Authority shall grant licences in respect of the activities in the organisation and conduct of gambling games in the manner prescribed by this Law and the licence conditions.

2. The Competent Authority shall prepare licence conditions for each of the activities in the organisation and conduct of gambling games, subject to the specific provisions contained in this Law.

3. Licence conditions for each of the activities in the organisation and conduct of gambling games shall be approved by the Ukrainian Cabinet of Ministers.

4. The Competent Authority shall enter any decisions and documents it adopted and other business licensing information required to keep the registers as prescribed by the Ukrainian Cabinet of Ministers into the Uniform State Register of Legal Entities, Private Entrepreneurs and Public Organisations and the registers maintained under this Law.

5. The Competent Authority shall have such other powers as set out in the Ukrainian Law on Business Licensing.

Article 46. Documents to be filed to obtain licences

1. A director of a legal entity that intends to carry on the business of organising and conducting gambling games shall file a licence application with the Competent Authority himself or through an authorised person.

2. A licence application shall contain the following details:

1) the name, place of business, bank account details and identification code of the applicant;

2) the business activity (as specified in paragraphs one and two of Article 2 of this Law) for which the licence applicant seeks a licence;

3) the type of the licence sought by the applicant;

4) information on the legal grounds for using such gambling organiser’s online system;

5) information on the gambling organiser brand to be used to organise and conduct gambling games;

6) the domain name the applicant is planning to use to organise and conduct gambling games on the Internet (if the application is filed to obtain a licence to organise and conduct gambling games on the Internet).

3. A licence application shall be accompanied by the following documents:

1) certified copies of the applicant’s constituent documents;

2) an extract from the relevant bank, court or commercial register in relation to the applicant’s founder (member), which was issued on a date that is no more than 90 calendar days before the filing date of the licence application, if the applicant’s founder (member) is a foreign legal entity;

3) a document issued by an idempotent auditor (acting in accordance with the Ukrainian Law on Financial Statement Audits and Auditing) to confirm that the authorised capital is fully formed;

4) a document evidencing the sources of the funds used to form the authorised capital, in particular the financial statements of the corporate founders (members) or the tax accounts of the individual founders (members) of the legal entity that intends to carry on the business of organising and conducting gambling games;

5) a document evidencing the authority of the signatory to the licence application;

6) certificates of no conviction in Ukraine and the country of citizenship of the directors, chief accountant (or a person charged with bookkeeping), substantial shareholders and ultimate beneficial owners;

7) documents evidencing, or a preliminary agreement providing for, the right of ownership or use, and a description of the premises to be used by the gambling organiser to carry out its activities if a licence to organise and conduct gambling games in casino gaming venues or a licence to organise and conduct gaming machine gambling games is obtained;

8) documents showing that the premises meet the requirements set out in this Law;

9) certified copies of documents showing that the applicant or its founder (member) has the right to the .UA domain name to be used to organise and conduct gambling games, and information on the hosting provider and domain name registrar (if the application is filed to obtain a licence to organise and conduct gambling games on the Internet);

10) such other documents as required by this Law and/or the licence conditions.

4. An application seeking a licence specified in sub-paragraph 6 of paragraph one in Article 44 of this Law shall be accompanied by documents evidencing the certification of the gaming tables and/or roulette wheel gaming tables.

 

5. An application seeking a licence specified in sub-paragraph 7 of paragraph one in Article 44 of this Law shall be accompanied by documents:

evidencing, or by a preliminary agreement providing for, the right of ownership or use, and a description of the premises to be used by the gambling organiser to carry out its activities;

6. An application seeking a licence specified in sub-paragraph 8 of paragraph one in Article 44 of this Law shall be accompanied by the following documents:

1) a document evidencing the certification, and the applicant’s ownership, of the gaming tables;

2) documents evidencing, or a preliminary agreement providing for, the right of ownership or use in respect of the premises to be used as a gaming machine venue.

7. An application seeking a licence specified in sub-paragraph 11 of paragraph one in Article 44 of this Law shall be accompanied by:

1) in the case of individual investment projects implemented under paragraph five of Article 26 of this Law:

a) the investment project;

b) a resolution of the Ukrainian Cabinet of Ministers, setting out that the provisions in paragraph three of Article 26 of this Law shall not apply;

2) in the case of a hotel complex built under paragraph six of Article 26 of this Law:

a) a registered construction commencement notice.

8. An application seeking a licence specified in sub-paragraph 10 of paragraph one in Article 44 of this Law shall be accompanied by documents showing that the applicant owns a racecourse.

Article 47. Licence conditions

1. Licence conditions in relation to each of the business activities in the organisation and conduct of gambling games shall be approved by the Ukrainian Cabinet of Ministers.

Licence conditions shall set out:

1) a licence application form;

2) a notice form in respect of the domain names to be used by a gambling organiser on the Internet;

3) a form for the information required to obtain a licence;

4) gaming equipment requirements;

5) a notice form in respect of a decision to grant or refuse a licence;

6) a form of gaming venue opening or closing notice;

7) restrictions on an applicant being controlled (within the meaning set out in Article 1 of the Ukrainian Law on the Protection of Economic Competition) by residents of countries carrying out armed aggression against Ukraine (within the meaning set out in Article 1 of the Ukrainian Law on the Defence of Ukraine) and/or whose acts create conditions for a military conflict to arise or for military force to be used against Ukraine;

8) restrictions on an applicant and/or its related parties being among those whose operations are restricted or prohibited under the Ukrainian Law on Sanctions;

9) other statutory requirements.

2. Licence conditions may not set out any further conditions for gambling organisers, other than those specified in this Law.

Article 48. Consideration of a licence application

1. The Competent Authority shall decide to grant or refuse a licence within fifteen (15) business days from the date of receipt of the licence application and accompanying documents.

2. The Competent Authority shall consider, and shall decide to dismiss, an application if there are grounds for doing so, within five (5) business days from the date of receipt of such licence application and accompanying documents.

A decision to dismiss a licence application shall become effective on its date and shall at all times be published on the official website of the Competent Authority, and information on such decision shall be entered into the Uniform State Register of Legal Entities, Private Entrepreneurs and Public Organisations on the business day immediately following the date of such decision.

A licence application shall be dismissed on the following grounds:

1) the documents accompanying the licence application have not been filed in full;

2) the application or at least one of the documents accompanying such licence application:

a) was signed by a person without authority to do so;

b) was issued otherwise than in compliance with this Law, was prepared otherwise than in due form, or lacks any details required to be specified therein under this Law;

3) the Uniform State Register of Legal Entities, Private Entrepreneurs and Public Organisations lacks details of the licence applicant (a business entity) or contains information on the state registration of its dissolution;

4) there is information that the business entity’s operations are controlled (within the meaning set out in Article 1 of the Ukrainian Law on the Protection of Economic Competition) by residents of countries carrying out armed aggression against Ukraine (within the meaning set out in Article 1 of the Ukrainian Law on the Defence of Ukraine).

3. A notice of decision to grant a licence shall be sent to the applicant within five business days from the date of the decision.

4. A notice of decision to refuse a licence shall be sent to the applicant within five business days from the date of the decision. A decision to refuse a licence shall set out a list and description of the grounds (reasons) for which such decision was made.

Article 49. Licence issue and payment

1. The Competent Authority shall grant a licence after receiving a document evidencing that fees have been paid for the first year of such licence in accordance with this Law.

2. A document evidencing that licence fees have been paid shall be any document that is evidence of payment in accordance with the law.

3. Fees for the first year of a licence shall be paid within ten business days from the date the applicant receives a notice of the decision to grant such licence from the Competent Authority.

4. Annual fees for a licence to organise and conduct gambling games shall be paid for each year of such licence at least thirty days before the beginning of each subsequent year of such licence.

5. Fees for the first year of a gaming machine, gaming table or betting outlet licence shall be paid within a period of ten business days from the date the applicant receives a notice of the decision to grant such licence from the Competent Authority.

6. Annual fees for a gaming machine, gaming table or betting outlet licence shall be paid for each year of such licence at least thirty days before the beginning of each subsequent year of such licence.

7. The amount of licence fees shall be determined by the amount of the minimum salary as effective at 1 January of the year in which it is decided to grant a licence and shall be paid in equal instalments each year.

8. If the Competent Authority revokes a licence, no instalment of fees paid for such licence shall be refunded.

Article 50. Licence refusal

1. A decision to refuse a licence shall be made on the following grounds as a result of the consideration of the licence application:

1) any information contained in the documents filed by the applicant to obtain the licence is inaccurate;

2) the applicant has been found to not satisfy the requirements of this Law and/or the licence conditions for the licence type specified in the licence application;

3) any of the applicant’s directors, chief accountant (or a person charged with bookkeeping), substantial shareholders or ultimate beneficial owners has a conviction for a public safety crime, property crime, business crime, computer, computer system or computer network or telecommunication crime or white-collar crime or crime committed in professional public service activities, which conviction has not been released or spent in a manner prescribed by law;

4) the verification of the documents filed by the applicant together with the licence application could not determine the sources of the funds used to finance and form the authorised capital of the applicant or identify those who are the founders (members) of the applicant;

5) the applicant has been found by a state financial monitoring entity or by a court to be in breach of the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing;

6) it has been found that the licensee’s operations are controlled (within the meaning set out in Article 1 of the Ukrainian Law on the Protection of Economic Competition) by residents of countries carrying out armed aggression against Ukraine (within the meaning set out in Article 1 of the Ukrainian Law on the Defence of Ukraine) and/or whose acts create conditions for a military conflict to arise or for military force to be used against Ukraine.

2. The Competent Authority’s decision to refuse a licence may be appealed to a court.

Article 51. Licence revocation

1. A decision to revoke a licence shall be made on the following grounds:

1) the licensee’s licence revocation application;

2) The Uniform State Register of Legal Entities, Private Entrepreneurs and Public Organisations contains information that the legal entity is being dissolved by liquidation (the private entrepreneur is ceasing his business) or information regarding the state registration of its dissolution (of cessation of business by the private entrepreneur);

3) any of the documents filed by the business entity to obtain the licence has been found to contain inaccurate information;

4) a report on the gambling organiser’s refusal to have an inspection conducted by the Competent Authority. A gambling organiser shall be deemed to have refused to have an inspection conducted by the Competent Authority where the Competent Authority’s officials have not been allowed to check compliance by that gambling organiser with this Law and the applicable licence conditions for no legal cause (the Competent Authority’s officials have been refused access to places where licensable activities are conducted and/or to gaming venues, or a person authorised to represent that gambling organiser during the inspection is absent from such gambling organiser’s place of business during the first day of the inspection);

5) a report on the gambling organiser’s breach of the requirements set out in paragraph five or six of Article 26 of this Law (in respect of investment licences);

6) licence fees have not been paid or remain overdue for more than two months;

7) the gambling organiser has failed to pay any such penalties imposed by valid resolution of the Competent Authority as specified in this Law;

8) the gaming equipment or online system has not been connected to the State Online Monitoring System within ten days from the date of receipt of the licence in accordance with sub-paragraph four in paragraph four of Article 22 of this Law;

9) a gaming machine has not been connected to the State Online Monitoring System;

10) the gambling organiser is in repeated breach of the requirements of this Law, the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing and/or the licence conditions;

11) the gambling organiser has been repeatedly found to have no designated bank deposit account opened or no bank guarantee issued for the payment of the amount specified in this Law.

12) there are documents supporting the fact that it has been found that the licensee’s operations are controlled (within the meaning set out in Article 1 of the Ukrainian Law on the Protection of Economic Competition) by residents of countries carrying out armed aggression against Ukraine (within the meaning set out in Article 1 of the Ukrainian Law on the Defence of Ukraine) and/or whose acts create conditions for a military conflict to arise or for military force to be used against Ukraine;

13) there are documents supporting the fact that any of the gambling organiser’s directors, chief accountant (or a person charged with bookkeeping), substantial shareholders or ultimate beneficial owners has a conviction for a public safety crime, property crime, business crime, computer, computer system or computer network or telecommunication crime or white-collar crime or crime committed in professional public service activities, which conviction has not been released or spent in a prescribed manner;

2. Any breach by a gambling organiser of (its non-compliance with) the requirements of this Law and/or the licence conditions shall be grounds for the Competent Authority ordering that such breach of the requirements of this Law and/or the licence conditions be remedied.

3. Any breach of the requirements of this Law and/or the licence conditions shall be deemed repeated where a gambling organiser commits another breach of the requirements of this Law and/or the licence conditions during one calendar year.

4. The Competent Authority shall decide to revoke a licence or to conduct a further inspection, within thirty days of the date the requirements of this Law and/or the licence conditions are found to have been breached repeatedly.

If the requirements of the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing are found to have been breached repeatedly, the Competent Authority shall decide to revoke a licence within six months of the date such breach is found, but no later than three years after the date of such breach.

5. Gaming machine, gaming table and/or roulette wheel gaming table licences shall be revoked on the grounds that the Competent Authority’s decision revoking the business entity’s licence to organise and conduct casino gambling games has become effective. A gaming machine licence shall be revoked on the grounds that the licence to organise and conduct gambling games in gamine machine venues has been revoked.

6. A betting outlet licence shall be revoked on the grounds that the Competent Authority’s decision revoking the business entity’s licence to organise and conduct betting activities has become effective.

7. The Competent Authority’s decision to revoke a licence may be appealed to a court.

Article 52. Licence to organise and conduct gambling games in casino gaming venues; Gaming table and gaming machine licences: Fees and term

1. A licence to organise and conduct gambling games in casino gaming venues shall be granted by the Competent Authority for a term of five years.

2. Fees payable for a licence to organise and conduct gambling games in casino gaming venues (based in Kyiv) shall be sixty thousand (60,000) times minimum salary.

3. Fees payable for a licence to organise and conduct gambling games in casino gaming venues (based in any populated areas, other than Kyiv, and outside populated areas) shall be thirty thousand (30,000) times minimum salary.

4. Annual fees for each gaming table licence shall be:

1) one hundred and seventy-five (175) times minimum salary per roulette wheel gaming table;

2) ninety (90) times minimum salary per gaming table, other than a roulette wheel gaming table.

5. The Competent Authority shall grant a gaming table licence for the term of the licence to organise and conduct gambling games in casino gaming venues.

6. Annual fees for a gaming machine licence shall be six (6) times minimum salary per gaming machine in a casino gaming venue.

7. The Competent Authority shall grant a gaming machine licence for the term of the licence to organise and conduct gambling games in casino gaming venues.

Article 53. Licence to organise and conduct casino gambling games on the Internet: Fees and term

1. A licence to organise and conduct casino gambling games on the Internet shall be granted by the Competent Authority for a term of five years.

2. Fees payable for a licence to organise and conduct casino gambling games on the Internet shall be six thousand five hundred (6,500) times minimum salary.

Article 54. Licence to organise and conduct betting activities; Betting outlet licences: Fees and term

1. A licence to organise and conduct betting activities shall be granted by the Competent Authority for a term of five years. Such a licence shall authorise betting activities to be organised and conducted at betting outlets and on the Internet.

2. Fees payable for a licence to organise and conduct betting activities shall be thirty thousand (30,000) times minimum salary.

3. The Competent Authority shall grant a betting outlet licence for the term of the licence to organise and conduct betting activities.

4. Annual fees for a betting outlet licence shall be thirty thousand (30,000) times minimum salary.

5. A racecourse totalisator wager licence shall be granted by the Competent Authority for a term of five years and for racecourses only. One minimum salary shall be charged in fees for such a licence.

A racecourse owner may obtain a racecourse totalisator wager licence authorising only one betting outlet to accept bets and pay out prizes on competitions taking place at such racecourse, provided that such outlet is located on the racecourse premises. Those who have obtained the said racecourse totalisator wager licence may not conduct betting activities on the Internet.

Article 55. Licence to organise and conduct gambling games in gaming machine venues; Gaming machine licences: Fees and term

1. A licence to organise and conduct gambling games in gaming machine venues shall be granted by the Competent Authority for a term of five years.

2. Fees payable for a licence to organise and conduct gambling games in gaming machine venues shall be seven thousand five hundred (7,500) times minimum salary.

3. The Competent Authority shall grant a gaming machine licence for the term of the licence to organise and conduct gambling games in machine gaming venues.

4. Annual fees for a gaming machine licence shall be six (6) times minimum salary per gaming machine.

Article 56. Licence to organise and conduct poker gambling games on the Internet: Fees and term

1. A licence to organise and conduct poker gambling games on the Internet shall be granted by the Competent Authority for a term of five years.

2. Fees payable for a licence to organise and conduct poker gambling games on the Internet shall be five thousand (5,000) times minimum salary.

3. Fees for the first year of a licence to organise and conduct poker gambling games on the Internet shall be paid within a period of ten business days from the date the applicant receives a notice of the decision to grant such licence from the Competent Authority.

Article 57. Gambling service licence: Fees and term

1. A gambling service licence shall be granted by the Competent Authority for a term of five years.

2. Fees payable for a gambling service licence shall be three hundred (300) times minimum salary.

SECTION ІХ

LIABILITY FOR

GAMBLING LAW VIOLATIONS

Article 58. Financial liability for breach of the requirements of this Law

1. Gambling organisers that permitted any such changes to be made to the design of gaming equipment which are not provided for in the manufacturer’s documents or any such changes (modifications) to be made to gaming equipment which are not approved by the gaming equipment manufacturer shall be penalised by a fine of one thousand (1,000) times minimum salary, for each piece of gaming equipment.

2. Where it is found that any of those on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling or any person under the age of 21 was allowed into gaming venue premises, the gambling organiser shall be penalised by a fine of five hundred (500) times minimum salary.

3. In the event of a breach of the player identification procedure, as a result of which any person under the age of 21 or any of those on the Register of Individuals with Restricted Access to Gaming Venues and/or Gambling was allowed to participate in a gambling game, the gambling organiser shall be penalised by a fine of five hundred (500) times minimum salary.

4. If a bet is accepted by means of:

1) any gaming equipment that is required by the Competent Authority to be inspected for conformity to technical requirements, and in respect of which there are no documents containing information regarding the required inspection for conformity to technical requirements applicable to such gaming equipment,

2) any gaming equipment that is required by the Competent Authority to be certified, and in respect of which there are no documents containing information regarding such certification,

3) any gaming equipment that is required by the Competent Authority to be connected to the State Online Monitoring System and that is not connected to the State Online Monitoring System—

the gambling organiser shall be penalised by a fine of one thousand (1,000) times minimum salary.

5. A gambling organiser carrying out betting activities at a betting outlet for which such gambling organiser has failed to obtain a betting outlet licence shall be subject to a fine of 160 times minimum salary, for each event when betting activities are carried out at such betting outlet for which no licence has been obtained.

6. A gambling organiser using any gaming equipment (a gaming machine and/or gaming table, including a roulette wheel gaming table) for which no licence has been obtained shall be subject to a fine of:

- 700 times minimum salary, for each event when any such roulette wheel gaming table is used to conduct a gambling game;

- 350 times minimum salary, for each event when any such gaming table (other than a roulette wheel gaming table) is used to conduct a gambling game. Where such gaming table has two or more workstations for employees of the gambling organiser, the fine shall increase by the number thereof.

- 24 times minimum salary, for each event when any such gaming machine is used to conduct a gambling game.

7. Any gaming equipment used after the Competent Authority's decision to revoke a licence has become effective shall be deemed used without a licence, for the purposes of the fine specified in paragraph six of this Article.

8. The financial penalties set out in this Article shall be applied by resolution of the Competent Authority which shall become effective from the date thereof. A decision by the Competent Authority to apply financial penalties to a gambling organiser shall be reasonable and shall contain the specific well-founded reason for such resolution.

9. The Competent Authority shall notify a gambling organiser of its decision to apply financial penalties to such gambling organiser within three business days from the date of such decision. The said notice of financial penalties to be applied to that gambling organiser shall be accompanied by a copy of such decision.

10. The Ukrainian Cabinet of Ministers shall determine how the financial penalties will be applied.

11. A decision by the Competent Authority to apply any such financial penalties to a gambling organiser as set out in this Article may be appealed to a court within three months from the effective date of such decision.

12. If, within three months from the effective date of a decision by the Competent Authority to apply financial penalties to a gambling organiser, such gambling organiser fails to give the Competent Authority written notice of voluntary execution of such decision, and such decision has not been appealed to a court, such decision shall be considered an enforcement document and shall be issued in compliance with the Ukrainian Law on Enforcement Proceedings and shall be delivered to the offices of the State Enforcement Service for enforcement in accordance with the law.

13. If a decision by the Competent Authority to apply financial penalties to a gambling organiser is appealed to a court within three months from the effective date of such decision, and if an administrative court initiates appeal proceedings in respect thereof, such decision shall be considered an enforcement document from the date a relevant judgment in the case becomes valid.

14. The financial penalties (fines) set out in this Article shall be credited to the State Budget of Ukraine.

Article 59. Liability for breach of advertising law requirements in respect of gambling games and gambling organisers

1. Advertisers or advertising producers or distributors that are in breach of the requirements prohibiting any advertising from being ordered, produced, placed or distributed in respect of gambling games and/or gambling organisers, trade and service marks or other intellectual property under which activities are carried out in the organisation and conduct of gambling games in violation of the gambling and advertising law requirements shall be subject to a financial penalty equivalent to three hundred (300) times minimum salary.

The financial penalties set out in this Article shall be applied by resolution of the Competent Authority as provided for in Article 58 of this Law.

2. The financial penalties set out in paragraph one of this Article may be appealed to a court.

SECTION Х

GUARANTEES FOR GAMBLING ORGANISER’S ACTIVITIES

Article 60. Guarantees for gambling organisers

1. For the entire term of a licence to organise and conduct gambling games, the following shall not be allowed:

any reduction in the term of a licence to carry out the relevant activity of organising and conducting gambling games;

any new types of authorisations to organise and conduct gambling games.

SECTION ХI

FINAL AND TRANSITIONAL PROVISIONS

1. This Law shall come into effect from the day immediately following the date of its publication, except for:

sub-paragraph two of paragraph one in Article 2, sub-paragraph five of paragraph seven in Article 2, sub-paragraphs fourteen, fifteen and twenty-eight of paragraph one in Article 8, sub-paragraphs nine and twenty-three of paragraph one in Article 15, paragraphs one, two, five, seven, eleven, thirteen, sixteen and seventeen of Article 22, paragraph four of Article 23, paragraph three of Article 27, sub-paragraph five of paragraph five in Article 36, sub-paragraph six of paragraph three in Article 37, sub-paragraph one of paragraph four in Article 46, sub-paragraph one of paragraph six in Article 46 and sub-paragraphs one and two of paragraph four in Article 58 which shall come into effect after the Competent Authority determines a list of companies (institutions and/or laboratories) that will certify certifiable gaming equipment and of certificates that will be automatically recognised in Ukraine, but no later than 1 January 2021;

sub-paragraph two of paragraph seven in this Section (in respect of Article 2032 of the Ukrainian Criminal Code) which shall come into effect one month after the date this Law is published;

sub-paragraphs two to eight of sub-paragraph (g) in sub-paragraph seven of paragraph seven in this Section (in respect of paragraph two of Article 71 of the Ukrainian Law on National Lotteries in Ukraine) which shall come into effect one year after technical regulations for lottery equipment have been adopted or conformity assessment requirements have been set, and sub-paragraph (l) of sub-paragraph seven in paragraph seven of this Section (in respect of the substitution of “Competent Authority” for “central executive authority that implements national financial policies” and “central executive authority that ensures the formation of national financial policies and policies on the issue and conduct of lotteries”) which shall come into effect from the date the Gambling and Lottery Regulation Commission becomes active.

2. Until they are brought in line with this Law, the laws and regulations shall be in effect insofar as they do not contradict this Law.

3. The provisions in this Act regarding the State Online Monitoring System shall come into effect from the date the State Online Monitoring System is brought into operation by resolution of the Competent Authority, but no later than two years from the effective date of this Law. After the State Online Monitoring System is brought into operation, gambling organisers shall connect gaming equipment to such system within six months from the date the State Online Monitoring System is brought into operation. The penalties imposed by this Law for failure to connect to the State Online Monitoring System shall not apply to gambling organisers until the said period expires.

Until the date the State Online Monitoring System is brought into operation, the annual equal instalment of fees payable for a licence to organise and conduct betting activities or for a licence to organise and conduct casino gambling games on the Internet and annual fees payable per gaming machine shall be threefold.

4. All information (required by this Law) for the period during which gambling organisers will operate until the State Online Monitoring System is brought into operation shall be uploaded into the state online monitoring system within ten business days after gambling organisers connect to the said system. The information shall be uploaded in accordance with the technical regulations set out by resolution of the Competent Authority. If there are no technical regulations approved, gambling organisers shall deliver the information in any form.

5. Until the Ukrainian Cabinet of Ministers approves the competitive selection procedures in respect of candidates for the offices of members of the Competent Authority, such competitive selection shall take place as provided for in the Ukrainian Law on the Public Service in respect of a competition to fill vacancies among Class A public officials.

6. The Ukrainian Law on the Gambling Business Ban in Ukraine (The Official Journal of the Ukrainian Parliament (Vidomosti Verkhovnoi Rady Ukrainy), 2009, No. 38, page 536 (as subsequently amended)) is declared to have ceased to be effective.

7. The following Ukrainian statutes shall be amended as follows:

1) in the Ukrainian Code of Administrative Offences (The Official Journal of the Ukrainian SSR Parliament (Vidomosti Verkhovnoi Rady URSR), 1984, Annex 51, page 1122 (as subsequently amended)):

insert Article 1564, to read as follows:

“Article 1564. Breach of acceptance rules for lottery bets

Any acceptance of lottery bets from those under the age of 18—

shall entail a fine (for the person who accepted such a bet) of one hundred to two hundred times non-taxable minimum personal income.

A repetition of the offence provided for in paragraph one of this Article, for which the person has already been subjected to the administrative penalty,—

shall entail a fine (for the person who accepted such a bet) of two hundred to five hundred times non-taxable minimum personal income”;

in Article 221, for the words and numbers “in Articles 160” substitute the words and numbers “in Articles 1564 and 160”;

in sub-paragraph two of sub-paragraph one of paragraph one in Article 255, insert the numbers “1564” after the numbers “1562”;

2) in the Ukrainian Criminal Code (The Official Journal of the Ukrainian Parliament (Vidomosti Verkhovnoi Rady Ukrainy), 2001, Nos. 25 to 26, page 131):

restate Article 2032, to read as follows:

“Article 2032. Illegal activities of organising and conducting gambling games or lotteries

1. The organisation and conduct of gambling games without a licence to carry out the relevant activity of organising and conducting gambling games (which licence shall be granted in accordance with Ukrainian law) or the issue and conduct of lotteries by a non-lottery operator or the organisation or operation of any venues with the purpose of giving access to gambling games or lotteries that are conducted on the Internet—

shall be penalised by a fine of ten thousand to forty thousand times non-taxable minimum personal income and disqualification from an activity or office for one year.

2. The acts (specified in paragraph one of this Article) committed either by a person with a previous conviction of illegal activities of organising and conducting gambling games or lotteries or by a group of persons acting in concert—

shall be penalised by a fine of forty thousand to fifty thousand times non-taxable minimum personal income and disqualification from an activity or office for three years”;

insert Article 3653, to read as follows:

“Article 3653. Omission to act by a law enforcement employee in respect of illegal activities of organising and conducting gambling games or lotteries

1. An omission to act by a law enforcement employee in respect of illegal activities of organising and conducting gambling games or lotteries, i.e. (i) a failure (committed wilfully, for motives of personal gain or for other personal interest or in the interests of third parties) to take statutory measures on report (notice) regarding the commission of illegal activities of organising and conducting gambling games or lotteries, or (ii) any concealment by such employee of the illegal activities (which he has identified) of organising and conducting gambling games or lotteries—

shall be penalised by imprisonment for a period from six to eight years and disqualification from an activity or office for up to three years”;

3) in the Ukrainian Code of Civil Procedure (The Official Journal of the Ukrainian Parliament (Vidomosti Verkhovnoi Rady Ukrainy), 2017, No. 48, page 436):

in paragraph two of Article 293, insert sub-paragraph 11, to read as follows:

“11. restriction of an individual from visiting gaming venues and participating in gambling games”;

in Section IV, insert Chapter 21, to read as follows:

“Chapter 21. Adjudication of cases regarding a restriction of an individual from visiting gaming venues and participating in gambling games

Article 3001. Jurisdiction

1. An application for restriction of an individual from visiting gaming venues and participating in gambling games shall be filed with the court in the jurisdiction where such individual resides.

Article 3002. Eligible applicants

1. An application for restriction of an individual from visiting gaming venues and participating in gambling games may be filed by first-degree family members or legal representatives of such individual.

Article 3003. Application content

1. An application for restriction of an individual from visiting gaming venues and participating in gambling games shall set out facts showing that there are grounds for restricting an individual from visiting gaming venues and participating in gambling games, namely:

1) the game costs exceed the individual's personal income, which puts the individual or his family in a difficult financial situation;

2) there are debt obligations owed by the individual in excess of 100 times minimum subsistence level of income;

3) the individual fails to pay child maintenance for more than three months;

4) the individual or his family members are recipients of a housing subsidy or housing and utility fee allowances;

5) the individual or his family members, as well as his legal dependants, are in a difficult financial situation.

Article 3004. Hearing of cases

1. A case regarding a restriction of an individual from visiting gaming venues and participating in gambling games shall be heard by the court with the participation of the applicant and the individual against whom the case is heard.

2. The court costs of proceedings in a case regarding a restriction of an individual from visiting gaming venues and participating in gambling games shall be borne by the state.

3. The court, having found that the applicant acted in bad faith and unreasonably, shall order the costs to be paid by the applicant.

Article 3005. Court judgment

1. The court, when making a judgment ordering that an individual be restricted from visiting gaming venues and participating in gambling games, shall set out the period of such restriction which may not be less than the period specified in the Ukrainian Law on the State Regulation of the Activities Related to the Organisation and Conduct of Gambling Games.

2. After the judgment has become valid, the court shall send it to the state regulator of the organisation and conduct of gambling games”;

4) in the Ukrainian Law on Advertising (The Official Journal of the Ukrainian Parliament (Vidomosti Verkhovnoi Rady Ukrainy), 2004, No. 8, page 62 (as subsequently amended)), insert Article 221, to read as follows:

“Article 221. Advertising of gambling games or gambling organisers

1. Gambling games or any trade and service marks or other intellectual property under which the activities of organising and conducting gambling games are carried out or any other designations under which gambling games are conducted shall be prohibited from being advertised:

on radio or television, including by cable, satellite, IPTV, online or mobile or digital television or by other means of signal transmission, from 6 am to 11 pm;

in science, popular science, education, public policy, reference, fiction, children and youth or other publications (other than dedicated gambling publications);

in all print media (other than dedicated gambling publications);

on the exterior or interior surfaces of vehicles or metro;

through outdoor advertising;

on any products (including clothes) designed primarily for people under the age of 21;

at places where entertainment, theatre, concert, sports or other events are held for people under the age of 21.

2. No gambling advertising may use people under the age of 21, including as photo models.

3. No gambling advertising shall lead anyone to believe that winning a gambling game is easy and that gambling can be a source of income or a job alternative.

4. Any television or radio programmes or any theatre, concert or other events primarily targeted at people under the age of 21 (other than sports event broadcasts) may not be sponsored using any trade and service marks or other intellectual property under which the activities of organising and conducting gambling games are carried out.

5. Any advertisements for any gambling games or for any trade and service marks or other intellectual property under which the activities of organising and conducting gambling games are carried out or for any other designations under which gambling games are conducted shall be accompanied by warning messages that shall read as follows: “Gambling may lead to gambling addiction. Follow the rules (principles) of responsible play.” Each warning message shall cover at least 15 per cent of the overall advertisement area (size). The text of each warning message shall be black on white background.

6. Orders for gambling advertisements to be produced, placed and/or distributed may be placed only by a business entity that is licensed to carry out the relevant activity in the organisation and conduct of gambling games.

7. Any advertising activities shall be prohibited in respect of any gambling games of gambling organising businesses and/or any trade and service marks or other intellectual property under which the activities of organising and conducting of gambling games are carried out where the advertiser is not licensed to carry out the relevant activity in the organisation and conduct of gambling games.

8. A gambling advertisement shall contain accurate information and shall not be false, untrue or misleading.

9. A gambling advertisement shall contain the licence details, number and date and the name of the authority that granted the advertiser the licence to carry out certain activity in the organisation and conduct of gambling games.

10. No business entity may act as an advertiser for a gambling organiser brand that belongs to another business entity. The term “gambling organiser brand” as used herein shall have the meaning set out in the Ukrainian Law on the State Regulation of the Activities Related to the Organisation and Conduct of Gambling Games.

11. No advertising may be targeted at vulnerable groups (minors, persons in need, or persons suffering from mental illness)”;

5) in paragraph ten of Article 1 of the Ukrainian Law on Tourism (The Official Journal of the Ukrainian Parliament (Vidomosti Verkhovnoi Rady Ukrainy) (VVR), VVR, 2004, No. 13, page 180 (as subsequently amended)), insert sentence three, to read as follows: “A hotel shall retain its class rating for 5 years”;

6) after paragraph two of Article 2 of the Ukrainian Law on the Fundamental Principles of the State Supervision (Control) in Business Activities (The Official Journal of the Ukrainian Parliament (Vidomosti Verkhovnoi Rady Ukrainy), 2007, No. 29, page 389 (as subsequently amended)), insert a new paragraph, to read as follows:

“Compliance by gambling organisers with (i) the Ukrainian Law on the State Regulation of the Activities Related to the Organisation and Conduct of Gambling Games, and (ii) the licence conditions shall be controlled in the manner prescribed by this Law, subject to the specific provisions set out in the Ukrainian Law on the State Regulation of the Activities Related to the Organisation and Conduct of Gambling Games.”

Paragraphs three to eight shall therefore be deemed to be paragraphs four to nine;

7) in the Ukrainian Law on National Lotteries in Ukraine (The Official Journal of the Ukrainian Parliament (Vidomosti Verkhovnoi Rady Ukrainy), 2013, No. 31, page 369 (as subsequently amended)):

a) in paragraph one of Article 1:

in sub-paragraph two of sub-paragraph 16, omit the second sentence;

in sub-paragraph 17: in the first sentence, omit the words “or by a player (self-service terminal)”, and, in the second sentence, insert the words “reproduce (broadcast) the drawing process” after the words “the amount of a player’s prize”;

insert sub-paragraphs 22 to 25, to read as follows:

“22) “competition” means a method of selecting lottery operators which uses applicable best indicator parameters to assess a person’s ability to carry out the activities of issuing and conducting lotteries;

23) “inter-country lottery” means a lottery conducted by a national lottery operator jointly with a non-Ukrainian resident entity that is authorised to conduct lotteries under the law of its country of residence;

24) “TOTO lottery” means a draw lottery where the draw outcome is determined depending on a player’s guess about the outcome of sports events that is unknown beforehand and cannot be influenced by that player and/or the lottery operator. No ratio may be used in a TOTO lottery.

25) “lottery equipment” means an electronic bet acceptance system terminal and a central electronic system”;

b) in sub-paragraph two of paragraph one in Article 2, for the words “by the Ukrainian Law on the Licensing of Certain Business Activities” substitute the words “by the Ukrainian Law on Business Licensing”, and insert the words “subject to the specific provisions set out in this Law”;

c) in Article 4:

in sub-paragraph three of paragraph one, insert a sentence, to read as follows: “The above rule shall not apply to inter-country lotteries”;

insert paragraphs three and four, to read as follows:

“3. Three lottery operators may carry out the activities of issuing and conducting lotteries in Ukraine at the same time.

4. It shall be prohibited to provide Internet telecommunication services and/or to organise and provide Internet access points for third parties to access any websites through which lotteries are organised and conducted (Internet clubs, Internet cafés etc), other than websites of national lottery operators”;

d) in Article 5:

in paragraph one, for the words “by the central executive authority that ensures the formation of national financial policies and policies on the issue and conduct of lotteries” substitute the words “by the Gambling and Lottery Regulation Commission (the “Competent Authority”)”;

restate paragraph five, to read as follows:

“5. National lottery operators may not conduct national lotteries jointly with any persons, other than other legal entities that are authorised to conduct lotteries (including in other countries).

An inter-country lottery shall enjoy the status of a national lottery in Ukraine. The manner in which inter-country lotteries will be conducted shall be determined by the national lottery operator together with the other legal entities that conduct (or will conduct) such a lottery, and such manner shall not be in conflict with Ukrainian law.

Specific provisions applicable to the conduct of inter-country lotteries may be set out in the licence conditions”;

e) in Article 6:

in paragraph three:

in sub-paragraph one, for “sole activities” substitute “activities”;

omit sub-paragraph eleven;

for sub-paragraph two of paragraph five substitute three new sub-paragraphs, to read as follows:

“The minimum authorised capital for a national lottery operator shall be thirty million hryvnias. If the authorised capital of a national lottery operator is specified to be equal to the minimum authorised capital set out in this Law, such authorised capital shall be formed from cash only.

If the authorised capital of a national lottery operator exceeds the minimum authorised capital specified in this Law, at least thirty million hryvnias of such authorised capital shall be formed from cash.

No money that comes from unproven sources shall be used to form the authorised capital of a national lottery operator”;

restate sub-paragraphs two and four, to read as follows:

“A lottery operator shall have at least three years of experience of conducting national lotteries. Any experience of issuing and conducting lotteries shall not include experience of distributing lotteries, including national lotteries”;

“At the time of filing its licence application, a business entity shall prove that it meets the lottery operator requirements set out in this Law and such other standards as specified in the licence conditions and shall prove that national lotteries were conducted during three calendar years preceding the year in which such business entity applies for the licence”;

insert paragraph ten, to read as follows:

“10. A national lottery operator shall publish (in full) its annual financial statements and annual consolidated financial statements, together with the auditor’s report, on its webpage on or before the 30th day of April in the year immediately following the reporting year.

f) in Article 7:

in paragraph one:

in sub-paragraph one, insert the words “subject to the specific provisions set out in this Law”;

omit sub-paragraph two;

insert paragraphs two to four, to read as follows:

“2. A licence to issue and organise lotteries shall be granted for a term of ten (10) years.

3. Fees payable for a licence to issue and organise lotteries shall be twenty-eight thousand (28,000) times the minimum salary as effective at the first day of January of the year in which it is decided to grant such licence.

Fees for a licence to issue and organise lotteries shall be paid in equal instalments each year throughout the term of such licence in the manner determined by the Ukrainian Cabinet of Ministers.

Fees paid for a licence to issue and organise lotteries shall be credited to the State Budget of Ukraine.

4. Licences to issue and organise lotteries shall be granted as a result of a competition held by the Competent Authority”;

g) insert Article 71, to read as follows:

“Article 71. Lottery equipment requirements

1. Gaming machines may not be used as lottery equipment, nor may lottery equipment be inside any equipment that looks like gaming machines.

A process of spinning drums that seemingly imitates a drawing process on a gaming machine may not be reproduced in any form.

2. Lottery equipment shall be subject to conformity assessment or scientific and technical examination to check whether there are any hidden functions in accordance with Ukrainian law.

Technical regulations shall be prepared, and conformity assessment shall be carried out, in respect of lottery equipment in accordance with the Ukrainian Law on Standardisation, the Ukrainian Law on Technical Regulations and Conformity Assessment and the Ukrainian Law on the Accreditation of Conformity Assessment Bodies.

Such scientific and technical examination shall be carried out in respect of lottery equipment (to check whether it meets the Competent Authority’s requirements) in accordance with the Ukrainian Law on Scientific Activities and Scientific and Technical Activities and the Ukrainian Law on Scientific Examination and Scientific and Technical Examination.

The Competent Authority shall act as a technical regulator in the lotteries sector and shall organise, coordinate and perform work related to conformity certification and the preparation of standards, technical regulations and specifications for the issue and conduct of lotteries.

3. Components providing access to an electronic system unit within lottery equipment shall be sealed with the national lottery operator’s seal.

Each piece of lottery equipment shall be labelled and contain a manufacturing number, year of manufacture, data on modification and repair (if any), and the manufacturer’s name.

A national lottery operator shall have such lottery equipment and software documents which confirm its right of ownership or use, the origin of such lottery equipment and its conformity to applicable requirements.

4. Any component (equipment) that is not to be used, according to the user documentation, may not be connected to lottery equipment.

5. An electronic bet acceptance system shall ensure that each bet is recorded and displayed in a central electronic system.

6. National lottery operators shall use software in compliance with software licensing and copyright laws”;

h) in Article 9:

restate paragraph six, to read as follows:

“6. National lottery distribution outlets may be located anywhere in Ukraine, except as otherwise provided for in this Law.

National lottery distribution outlets may not be located:

in Ukraine’s temporarily occupied territory;

directly on the premises where state authorities, other government agencies or local authorities are located;

directly on the premises of cultural institutions (including libraries, museums, theatres and exhibition galleries);

directly on the premises of healthcare facilities;

directly on the premises of specialised children's entertainment centres;

directly on the premises of religious buildings and structures or on premises that belong to religious organisations;

on housing premises;

in projects under construction.

National lotteries shall be distributed in any manner not prohibited by law (including via the Internet or mobile applications or otherwise)”;

insert paragraphs nine and ten, to read as follows:

“9. Each transaction of accepting a national lottery bet, each transaction of refunding a national lottery bet and each transaction of paying out a national lottery prize shall be recorded in the national lottery operator’s electronic bet acceptance system in real time.

National lottery bets or prizes may not be accepted or paid out, without them being registered in such electronic bet acceptance system.

A national lottery operator shall enable the competent authority to exercise real-time control over an electronic bet acceptance system to the extent permitted by the licence conditions.

10. National lotteries that are similar, including visually, to casino gambling games (cylindrical games (roulette)) or dice games or that reproduce, in any form, a process of spinning drums that seemingly imitates a drawing process on a gaming machine shall be prohibited”;

j) in Article 10:

in paragraph three, insert three sentences, to read as follows: “Lottery bets may not be accepted from those under the age of 18. A distributor may, before accepting a bet, request an individual to present an evidence of age document if there is doubt that such individual has attained the age of 18 years. No bet may be accepted from the individual if the individual refuses to provide such a document”;

in paragraph five, insert sub-paragraph two, to read as follows:

“When a national TOTO lottery is conducted, the national lottery operator shall make a programme publicly available for each drawing of that lottery”;

k) in Article 12:

in paragraph one, omit sub-paragraph two;

in sub-paragraph two of paragraph four, restate the second sentence, to read as follows: “Such rule shall not apply to inter-country lotteries”;

l) in the Law, for the word “player” (in all cases and numbers) substitute the word “participant” in such case and number as may be appropriate;

m) in the Law, for the words “central executive authority that implements national financial policies” and “central executive authority that ensures the formation of national financial policies and policies on the issue and conduct of lotteries” (in all appropriate cases) substitute the words “Competent Authority” in such case as may be appropriate;

8) in the Ukrainian Law on Business Licensing (The Official Journal of the Ukrainian Parliament (Vidomosti Verkhovnoi Rady Ukrainy), 2015, No. 23, page 158 (as subsequently amended)):

in paragraph two of Article 2, insert paragraph five, to read as follows:

“5) gambling market activities that are carried out in accordance with the Ukrainian Law on the State Regulation of the Activities Related to the Organisation and Conduct of Gambling Games”;

in paragraph one of Article 7:

in sub-paragraph (18), insert the words “- subject to the specific provisions set out in the Ukrainian Law on National Lotteries in Ukraine”;

insert sub-paragraph 181, to read as follows:

“181) gambling market activities that are licensed in accordance with the Ukrainian Law on the State Regulation of the Activities Related to the Organisation and Conduct of Gambling Games”;

9) in the Ukrainian Law on Anti-Money Laundering, Terrorist Financing, and Weapons of Mass Destruction Proliferation Financing (The Official Journal of Ukraine (Ofitsiinyi Visnyk Ukrainy), 2020, No. 4, page 1 (as subsequently amended)):

in paragraph one of Article 1:

in sub-paragraph five of sub-paragraph 31, for the words “by a lottery or gambling game player” substitute the words “by a gambling game player or lottery participant”;

omit sub-paragraph 50;

restate sub-paragraph (j) of sub-paragraph 7 of paragraph two in Article 6, to read as follows:

“j) business entities that conduct lotteries and/or gambling games”;

in sub-paragraph 14 of paragraph two in Article 8, for the words and numbers “in paragraphs 12 and 13” substitute the words and numbers “in paragraphs 11 and 12”;

in paragraph one of Article 10:

restate sub-paragraph 4, to read as follows:

“4) business entities that conduct lotteries and/or gambling games (other than casino gambling games), when the financial transactions of accepting bets, refunding bets and giving (paying out) prizes are carried out.

A business entity that conducts lotteries shall also act as an initial financial monitoring entity when the financial transactions of accepting lottery bets, refunding lottery bets and giving (paying out) lottery prizes are carried out by lottery distributors on behalf and at the expense of that business entity.”;

insert sub-paragraph 5, to read as follows:

“5) business entities that conduct casino gambling games, when the financial transactions of exchanging money for gaming hryvnia substitutes or of exchanging gaming hryvnia substitutes for money are carried out and when prizes are paid out”;

restate paragraph eleven of 11 Article, to read as follows:

“11. Business entities that conduct lotteries and/or gambling games shall conduct due diligence, subject to the specific provisions below:

1) due diligence in respect of those who have become entitled to a prize in a lottery or gambling game shall be carried out before or during a financial transaction of paying out (giving) that prize or a financial transaction of exchanging gaming hryvnia substitutes for money, provided that such financial transaction is subject to financial monitoring under Article 20 or 21 of this Law;

2) due diligence in respect of those who have expressed an intention to have their lottery or gambling game bets back shall be carried out before or during a financial transaction of refunding such a bet, provided that such financial transaction is subject to financial monitoring under Article 20 or 21 of this Law;

3) due diligence in respect of those who have expressed an intention to place a bet in a lottery or gambling game or to exchange money for hryvnia gaming substitutes shall be carried out before or during such financial transaction, provided such due diligence is required under this Law and that such financial transaction is subject to financial monitoring under Article 20 or 21 of this Law.

A business entity that conducts lotteries shall, when due diligence is carried out in respect of a lottery participant, and in addition to such due diligence measures as set out in paragraphs eight and nine of this Article, identify the lottery’s name, the lottery ticket number (the name and number of another document evidencing the lottery bet or his prize amount) and (for draw lotteries) the date and number of the lottery draw”;

in sub-paragraph 3 of paragraph one in Article 18, for the words “business entities that provide lottery and/or gambling services” substitute the words “business entities that conduct lotteries and/or gambling games”;

in sub-paragraph one of paragraph one in Article 20, for the words “for business entities that provide lottery and/or gambling services, 30 thousand hryvnias” substitute the words “for business entities that conduct lotteries and/or gambling games, 55 thousand hryvnias.”

8. The Ukrainian Cabinet of Ministers shall:

1) by 1 July 2020, bring forward proposals for consideration by the Ukrainian Parliament in respect of amendments to be made to the Ukrainian Budget Code and the Ukrainian Law on the 2020 State Budget of Ukraine with regard to the allocation of funds received from gambling licence fees to the State Healthcare, Sports, Education, Culture and Science Fund, and proposals in respect of such amendments to other Ukrainian laws which are implied by this Law, by setting out that funds received from licences to organise and conduct betting activities will be applied to support sports, from licences to issue and conduct lotteries, to support culture, from licences to organise and conduct casino gambling games on the Internet or to organise and conduct poker games on the Internet, to finance healthcare, and from gambling service licences, for education and science, and shall set out that funds from licences to organise and conduct gambling games in casinos and gaming machine venues will be allocated (50%) to the state budget and (50%) to the appropriate local budget of the local community where such a gaming venue is located;

2) within two months from the effective date of this Law, ensure that the Competent Authority is established and financed;

3) within three months from the effective date of this Law, adopt the regulations specified in this Law;

4) ensure the operation of the state online monitoring system;

5) within three months from the effective date of this Law, bring its regulations in line with this Law;

6) within three months from the effective date of this Law, ensure that local authorities revise and repeal their regulations that conflict with this Law;

7) within three months from the effective date of this Law, ensure that rules are approved for the organisation and conduct of sports poker in Ukraine;

8) after the State Online Monitoring System is brought into operation, prepare and submit proposals for consideration by the Ukrainian Parliament in respect of amendments to be made to the Ukrainian Tax Code to change tax rates applicable to income from the activities of organising and conducting gambling games;

9) set up a working team to draft the subordinate regulations required to implement the provisions of this Law.

 

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