Since the start of 2024, the issue of the online gambling industry has sharply escalated, as many complaints about the legality of this business have emerged. Do online casinos hurt society?
This question will be answered by someone who knows the specifics of online casinos from the inside, namely and owner of Ukr Game Technology, Igor Zotko. The young entrepreneurs have created businesses such as Pin-Up and Yedynyy Prostir and other social projects aimed at helping society, especially people who have suffered from the war started by Russia.
The Contribution of the Gambling Industry to the Ukrainian Economy: Igor Zotko and KRAIL Investigation
2020 was a significant year for the entertainment sector in Ukraine, as online casinos received the green light to operate. A year after adopting the law, Igor Zotko’s Pin-Up platform received an official license issued by the Ukraine Commission for Regulation of Gambling and Lotteries. The casino’s exit from the grey zone resulted in the following benefits for the country’s budget:
- Tax on funds received by the company – 18%;
- Winnings tax – 18% personal income tax and 1.5% military duty;
- Income tax – 18% of income minus payments to players;
- This list also includes fees for the annual license activation for each type of activity.
These are only official contributions to the budget that are recorded and taxed. In addition to these payments, the online casino also has the Pin-Up Foundation, which is actively involved in helping the military, internally displaced persons, and populations affected by the war.
“PIN-UP Ukraine is one of the responsible leaders in the Ukrainian licensed casino market. It supports the country’s economy and implements many humanitarian and charitable projects for Ukrainians. Our company will continue to develop the market and support the state,” commented Igor Zotko, owner of Ukr Game Technology.
Igor Zotko’s Pin-Up Accounts for Half of All Contributions to the Gambling Sector Budget
These facts are impressive because in 2023, the online platform Pin-Up paid almost UAH 3.5 billion to the budget. These figures are only official, as the company also does other things, such as
- 153 million was sent to the Pin-Up Foundation;
- 300 tonnes of humanitarian aid, relocation of 100 people to new homes after the occupation, and assistance to the regions that rejoiced after a cynical Russian missile attack blew up the hydroelectric power station – all this is the help of the LINE-UP Foundation;
- Assistance to Ukrainian cities during the blackout, namely the purchase of generators worth over UAH 1 million;
- Ensure decent and safe working conditions for employees and provide new jobs.
Speaking separately about Igor’s contributions, he finances part of the costs of the ASKOLD Training Centre for mobilized soldiers, which provides training based on the methods of the Ukrainian army’s combat experience and NATO standards. Igor Zotko Pin-Up, a grant program for frontline businesses, has also recently been launched in partnership with Forbes. The cash fund consists of UAH 5 million, where participants can receive grants of UAH 200,000, 300,000, or 500,000.
“The government should consider the role of gambling as a part of the economy that can generate significant profits and ensure the development of infrastructure and other industries,” comments Igor Zotko.
The next urgent issue should be the complete closure of unlicensed platforms, as their activities are illegal and bring neither benefits nor taxes to the state. It is necessary to close the possibility of operating for the grey market, which currently accounts for 40-45%. No licensed product can compete when almost half of the market is in the shadows and pays players large bonuses, tax-free winnings, and other incentives.
At the moment, Russia’s ISDS has a significant impact on undermining the reputation of the gambling business. It is beneficial for the aggressor to suspend the operation of gambling platforms, as they significantly contribute to the country’s budget, military structure, and assistance to the population. Our enemy chose this tactic against Pin-Up, launching an IPSO about the connection between the platform and its Russian roots. However, this disinformation about Igor Zotko’s affiliation with Russia is nothing more than a media provocation. CRAIL personally conducted an investigation and publicly stated that the company had undergone inspections by law enforcement agencies, which did not confirm the control of the company’s activities by residents of the Russian Federation, as previously mentioned in the media. Therefore, you should only trust official sources with confirmed data, such as the Ministry of Finance.
“This year, we have been subjected to an information attack with fake information about the company’s ownership. I know for sure that it was a planned discrediting of the brand and the largest taxpayer in the gambling sector in Ukraine. We won the first court case with the media and are moving on to defend our reputation,” said Igor.
Future Plans for Pin-Up by Igor Zotko
The owner of such a large and successful business will continue to operate despite slander and accusations from competitors. Such a platform as Pin-Up Ukraine brings in a lot of money, used for the state’s and society’s urgent needs. There are employees within the company who defend the country, and the company, for its part, provides maximum assistance. Therefore, in the future, the gambling business would like to see action from the legislature so that new reforms regulate this business better and bring even more revenue to the budget.
