Ukraine’s Gambling Industry Pays $47.2M in Taxes in February

Ukraine’s Ministry of Finance has published its tax report for February, highlighting a significant increase in the gambling industry’s contributions. Despite the ongoing war with Russia, the tax revenues suggest that the gaming sector is still going strong.

According to the ministry, businesses and organizations in the country paid a total of UAH 184.8 billion ($4.85 billion) in taxes and fees in February. This notably represents a significant 65% increase on January.

Payments to the State Tax Service amounted to UAH 107.4 billion ($2.82 billion, an increase of 78%), which included UAH 61 billion in corporate income tax and dividends, UAH 18.9 billion ($0.5 billion) in value-added tax, UAH 15.6 billion ($0.41 billion) in personal income tax and military levy, UAH 8 billion ($0.21 billion) in exercise tax and UAH 3.1 billion ($0.09 billion) in rent.

In the meantime, income from the State Customs Service decreased by 15.9% to UAH 39.8 billion ($1.04 billion).

By the end of the month, the general and special funds of the state budget received UAH 229 billion ($6.01 billion) in taxes, fees and other payments. Approximately UAH 36.1 billion ($0.95 billion) was provided to the Pension Fund and social insurance funds.

As mentioned, the gambling industry increased its contributions and paid out UAH 1.8 billion ($0.047 billion) in taxes. This represents a staggering 370% increase from February and highlights the sector’s resilience. For reference, the gambling industry’s contribution in January stood at UAH 400 million ($10.5 million).

Ukraine Seeks to Regulate Its Industry Amid the War

Speaking of taxes, in August 2023, Ukraine resumed its 18% turnover tax on online gambling. The decision came as the country sought to raise valuable revenue.

In the meantime, Ukraine continues its fight against illegal gambling and the influence of Russian gambling companies. Soon after the start of the latter country’s invasion, Ukraine committed itself to eliminating sites that siphon gambling money to the Russian economy.

To that end, the US Gaming Control Board in Nevada proposed to help Ukraine oust Russian influence from the gambling industry.

Ukraine’s crackdown on companies with ties to Russia also affected the Ukrainian gambling giant Parimatch, which tried to convince the government that it has no affiliation with its aggressor. A petition to lift the company’s sanctions had even reached President Volodymyr Zelenskyy.

In more recent news, Ukraine’s Casino Cosmolot came under fire over allegations of tax evasion and unlicensed gambling.