B2B Licensees: What Are the Expectations for Companies Providing Services to the Gambling Market?

It is not easy for developers to sell their online monitoring system for a casino or slot hall. You need to get a special license to provide services in the field of gambling, which costs 1.8 million hryvnias. Eleven Ukrainian companies have already received such B2B licenses. Almost everyone is engaged in the development of systems for online monitoring and management of gambling halls. But the expectations from the work were not met by all licensees. The service station of the company "Galaxion" Sergey Los tells - there are not many clients yet.

“So far, this license itself has not brought us additional orders. But we were forced to take this license because we have one client who purchased a gaming hall monitoring system from us. And without this license, the client could not get his license. An operator who opens a gaming club must have an agreement with a B2B company that will serve it in the future. Without this agreement, he cannot obtain a license to operate. Therefore, so far we are working with only one network of slot-halls that are planning to open,” - says Sergei Los.

A representative of one of the companies that received a license to provide services in the field of gambling told Gamingpost that there are practically no orders because the market itself is not yet operating at full capacity.

“What market - so many clients. And there are no clients. They can be counted on the fingers of both hands. The number of operators depends on whether the tax code changes. We do not argue whether it is good or bad, we work with what is on the market. If nothing changes, then the market will remain so. And there will be neither replenishment to the budget, nor a legal market as such,” - says a representative of a company with a B2B license.

But there is hope that there will be more clients, says Sergei Los. Before the closure of the gambling market in Ukraine, the Galaxion company was called Odrex and for about 10 years cooperated with many gambling operators. Now, after legalization, these companies are going to re-enter the legal gambling market. But they are not inclined to take risks.

“There are a lot of companies that are just planning to enter the market. They are waiting for the moment due to the fact that the market has not yet been formed, the rules of the game have not been formed. They are in no hurry to make investments, they are in no hurry to take steps, until they see from the experience of someone else that the business is working and making money. Therefore, there is a hope that when the tax issue is resolved, there will be more clients,” - says Sergei Los.

The bill on changes in taxation was adopted by the People's Deputies in the first reading. It equalizes GGR tax rates for all types of businesses up to 10%, defines the correct wording of "income" and "winnings", and does not tax winnings up to UAH 48,000. The document now awaits a second reading in the fall. And the paid B2B licenses have already brought almost UAH 20 million to the Ukrainian budget.

The material especially for Gamingpost.net


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