14 October 2015; Kyiv, Ukraine. The second day of the Game ON Conference, dedicated to latest trends in online gambling and sports betting, continued to address the at times difficult questions, offering a way forward for rejuvenating the gambling industry in Ukraine. The scale of the audience in the presentation hall despite the national holiday was a testament to the timeliness of this discussion.
Opening with a comprehensive review by DLA Piper Ukraine of the intricacies of the Ukrainian tax structures, Pontus Lindvall, CEO and President of Betsson, shared his company’s rich expertise and pioneering approach to online gambling on the European and American markets. One of the key messages of Mr. Lindvall’s address was the need for legalisation of the industry since reputable companies cannot enter an unregulated market. He stressed the need for transparent taxation as investors and operators working to international principles will not compete with companies who avoid payments.
Game ON also featured a presentation by Lasha Gogiberidze, Commercial Director of international holding company Parimatch, who acted as a lead sponsor of the Conference. His presentation titled ‘Sports betting – we are ready’ provided expert overview of the online bookmaking market in Ukraine, using the company’s positive experience in Moldova, Belarus, Russia, Georgia and Kazakhstan as a case study: “85% of betting in Ukraine takes place online, with currently about 1500 illegal betting shops around. The majority of bets are placed through web-based platforms of foreign operators, which means the proceeds from the bookmaking business go offshore. There are about fifteen such online operators popular here, among which are Bet365, William Hill, bwin, Betcity, Fonbet and others. The end result is that the loss of potential profit for the country is enormous.” Lasha Gogiberidze further commented that sports betting and bookmaking in general is a financial product and as such it requires a working legal environment. The benefit for the state budget, however, would be substantial. He also stressed that bookmaking companies are ready to conduct business in a socially responsible way by supporting the development of national sports and addressing other social needs in line with proper regulation.
Martin Lucas of Inspired Gaming Group presented innovations in the Video Lottery Terminal sector, as an ever-evolving entertainment eco-system, which quickly reacts to the latest technological and customer trends. Simon Fraser from GBI Racing in his inspiring presentation demonstrated how sports betting can give an impetus to the development of horse racing and horse breeding, making those once again a part of Ukraine’s culture. Irina Sergienko, representing the Ukrainian Bookmakers Association at the event, summarised numerous legislative initiatives aimed at regulating various aspects of the gambling industry. She concluded, however, that there are only two that look at the market as whole, with one being developed by Viktor Romanyuk, a People’s Deputy and a member of the Ukrainian Parliament, who presented his draft legislation on the first day of the Game ON Conference.