Ukrainian casinos evade taxes

Major gambling companies in Ukraine are suspected of underpaying taxes. According to Yuriy Hayday, senior economist at the Centre for Economic Strategy, two of the three largest gambling businesses pay only 5–8% of the amount of bets received, while smaller market players remit two to three times more to the budget.

Why is the tax burden distributed unevenly?

The expert identifies two possible ways to increase tax revenues:

1. Strengthening the position of new companies. If the "second tier" continues to take market share from the leaders while maintaining high tax discipline, the budget could receive additional funds.
2. Enhancing control by tax authorities. If the State Tax Service (STS) and the new regulator figure out why some large companies pay less, the situation could change.

However, as Hayday notes, market leaders, despite their huge turnovers, use schemes that allow them to minimise taxes.

Reasons for the leniency of supervisory bodies

Economists are asking: how do large casinos manage to pay significantly less? The answer is obvious: corruption. Kickbacks amounting to 3% of turnover allow tax authorities to turn a blind eye to violations, while the Bureau of Economic Security (BES) shows no interest in investigations.

As a result, the vertical of power, including tax and anti-corruption structures, demonstrates passivity. This creates favourable conditions for the gambling business to evade its obligations to the state budget.