The procedure for issuing permits for compliance and approval of the operation of gaming facilities (casino gaming zone, bookmaker slot for accepting bids and paying winnings, gaming machine hall) has been adopted in Ukraine.
Oleksiy Demyanenko (Partner in the law firm Asters) and Tetiana Tyshchenko (Partner at Asters, member of the Advisory Board of Experts of the Regulatory Commission on Gambling and Lotteries in Ukraine) analyzes the legal nuances of the procedure.
Approval is given to the owner of the premises and not to the tenant or operator.
The owner of the premises can operate them independently or make them available for use upon approval. The ordinance is formulated in such a way that the transfer of premises into game use takes place with the granting of permission to comply with the premises to the owner. Although the possibility that certain premises are already rented for gambling prior to the submission of the application by the owner is not obvious, one can conclude that this is reasonably permitted under the general principles of commercial agreements. The deciding factor is not the date of the conclusion of the lease, i. H. Before or after the approval of conformity has been granted, but rather the fact that the premises are not allowed to be operated by the tenant for gambling purposes before the authorization has been received from the owner.
The permit is given for individual premises, which means that the same owner needs multiple permits if the operations are carried out at different locations or at different locations in one location.
Each of the bookmaker slots and the slot machine hall must always be in one building, i.e. H. If the bookmaker slot or arcade occupy multiple interconnected premises, they will be treated as separate bookmaker slots and arcade halls. At the same time, the casino can be located in several premises at the same address, obtain approval for the compliance of several premises for each of these premises, but is considered as one casino.
The application for a permit must be accompanied by the ownership documents for the premises, the certificate of assignment of the category to the hotel in which the premises are located and the technical passport of the premises.
The list of documents is complete. While the regulations require the submission of a certificate of assignment of the category to the hotel, this document cannot logically be submitted by an owner of a bookmaker slot located on the hippodrome.
The approval is granted within 5 calendar days of the application. The procedure does not provide for an extension of the deadline by the Gambling Commission. However, the application may be refused if the application is incomplete and contains procedural errors that require the application to be resubmitted to the application or premises that are not in compliance with the regulations. The verification of documents can be carried out remotely at the Gambling Commission office without physical inspection of the premises, especially if they are in the regions of Ukraine.
The permit is granted indefinitely, and there is no provision for renewal or revocation of the compliance permit.
The difficulties may arise, for example, when the arcade is legitimately opened in an area reasonably distant from the school and the school is then opened in the immediate vicinity of such an arcade. While this particular case is not addressed in the regulations, there are at least three options:
(i) The arcade can continue to exist, as the restriction to 500 meters only applies and is checked at the time the arcade opens. The owner of the amusement arcade does not bear the operational and business closure risk of a later school opening in the region ;;
(ii) the arcade is closed; and
(iii) The school cannot open 500 meters away if the arcade is legally in existence and has all necessary licenses and permits and is to be relocated to another, more remote location. However, if the school opened with an injury 500 meters away, it will have to be relocated as the arcade operator started legitimate operations earlier and therefore has priority.
In the previous regulations, no registration fee is set for the granting of a license, which means that the application fee is free of charge, unless and until the contrary decision is made by the Gambling Commission and the registration fee is introduced.
Information on permits issued and premises that have been validated for gambling will be published by the Gambling Commission for review via the website.