Gaming Laboratories International (GLI) has become the first international gaming lab to be accredited in Ukraine.

GLI has been appointed by Ukrainian regulatory authority, PlayCity, as both a testing/certification and inspection body for all gaming related hardware and software, and is currently the only foreign entity to be accredited.

The company will work with both foreign and Ukrainian suppliers, which will need to hold a certificate of approval from PlayCity in order to request certification for the market.

GLI will deliver all Ukrainian certification services through its European operational hub, GLI Europe, ensuring certification is conducted under GLI’s ISO/IEC 17025, 17020, and 17065 accreditations.

“We are grateful for the trust PlayCity has placed in GLI,” said James Boje, GLI managing director EMEIA. “At GLI, we work with regulators in more than 710 jurisdictions, and we will bring our global expertise to PlayCity and to suppliers who wish to enter the Ukrainian market, guaranteeing the highest levels of testing quality and compliance.”

In related news, Ukraine’s Ministry of Digital Affairs recently introduced two new bills to update the current gambling regulatory and tax framework.

The Ministry said that the legislative changes will move the industry from formal supervision to real digital control and fair taxation.

The first bill changes the approach to regulating the industry from formal oversight to constant digital control.

It provides as obligation for gambling organisers to monitor gaming behaviour and respond to signs of risky behaviour, and allow players to set personal limits and self-restrict. It also includes a clear gradation of violations for licensees and proportionate sanctions.

“This will help create conditions for a more transparent and accountable market, gradually reduce the shadow segment, and increase budget revenues,” said the Ministry.

A separate bill proposes new rules for taxing the gambling sector.

The Ministry said that the current tax model contains many loopholes and contradictions, which puts legal businesses at a disadvantage. In particular, gambling income tax and corporate income tax are applied simultaneously, meaning that the same economic base is effectively taxed twice.

In addition, the current tax on winnings is calculated on the full amount of the payout, without taking into account the player’s stake. 

The new bill proposes to establish a single tax rate on income from gambling organisations at 18 per cent, with the tax on winnings to be paid from the player’s real income – the difference between the deposited funds and winnings.

It also proposes to verify companies’ tax reporting with the data of the State Online Monitoring System, and to schedule tax audits in case of significant discrepancies in data.

“The legalisation of gambling in 2020 was the first step towards bringing the market out of the shadows, but during this time it became clear: legality in itself does not guarantee effective control,” said Natalia Denikeeva, Deputy Minister of Digital Transformation. “The market has grown faster than the tools of state supervision, and today our task is to move from formal regulation to systemic, digital control of this industry. 

“The proposed package of legislative changes actually changes the logic of the state’s work in this area – we will see the market every day based on data.”

The government has invited comments from interested parties, which will be taken into account during further refinement of the draft laws.