Eastern Europe
Anticipating Gambling Legalisation in Ukraine, Hilton Kyiv Plans to Open 2 Casinos
Hospitality giant Hilton has announced its plans to open two casinos on the premises of its Kyiv hotel, anticipating gambling legalisation in Ukraine.
The co-owner of the hotel’s Ukrainian branch, who has also co-founded the 1+1 Media Group, Boris Fuchsman, plans to invest $30 million in the project.
The project’s start date remains unknown amid ongoing efforts to legalise gambling in hotels.
A draft bill legalising gambling in hotels has to undergo a few more steps before it comes into effect: while it was passed in the first reading on January 16, parliament still has to vote for it in the second reading before Ukraine’s president signs it.
Ukraine’s President Volodymyr Zelensky has pushed for legalising gambling in Ukraine: he ordered a new gambling bill in September 2019 and supported it in December when parliament votes for it in the first reading. As a result, 260 lawmakers voted for the draft law.
Ukraine’s Prime Minister Oleksiy Honcharuk echoed Zelensky’s support for the bill. The easiest way to eliminate the vast network of underground illegal gambling spots would be to legalise the activity, which could also bring over $120 million in tax revenues to the state budget, Honcharuk said during a briefing in November 2019.
Meanwhile, the head of the parliament’s committee on finance, taxation and customs policy, Danylo Hetmantsev estimates the tax revenue could be as high a $190 million.
According to the draft, casinos will be only be permitted in five-star hotels in designated tourist areas.
The government’s ambition is to ensure that “gambling will be conducted exclusively on the territory of hotels” while removing “gambling halls and slot machines from streets,” Honcharuk said.
In Kyiv, only hotels with more than 200 rooms will be eligible, while in smaller cities such as Odesa, Kharkiv, Dnipro, and Lviv, hotels will be allowed to install casinos if they have at least 120 rooms.