According to the legal department of Ukraine’s legislature, it would be unconstitutional for the creation of Ukraine’s proposed Gambling Commission. This is currently outlined in the country’s draft gambling law. The Legal Department of the Verkhovna Rada made this claim in its notes on the bill, arguing that only the executive had the power to create a regulatory body like a gambling commission.

The parliamentary Committee on Finance, Tax, and Customs Policy may appoint members of the Tender Commission under the current version of the bill, which then elects the chairman and members of the Gambling Commission. Nevertheless, the legal department said that the regulation does not include appointing members.

The legal department also said that according to the Constitution of Ukraine, the parliamentary committees are established by the Verkhovna Rada of Ukraine to carry out draft law, prepare and preliminarily consider issues related to its powers, and perform control functions under the Constitution of Ukraine. Thus, the committee of the Verkhovna Rada of Ukraine should not be the subject of nominations to the Tender Commission for the election of the chairman and members of the Authorized Body.

It added that the powers of the Verkhovna Rada to establish by law central executive bodies with a special status are held by the Prime Minister and the Cabinet. Furthermore, the legal department criticized other areas of the draft law by saying that there should be a clarification on a requirement that all operators and slot machine suppliers “must not be controlled by residents of an occupying state and the aggressor state in relation to Ukraine” was “devoid of clear and unambiguous content.”

On the other hand, it said that the idea of excluding operators’ entry into the market is permitted if the language can be clarified. Before the postponement, the bill was planned to be considered by the Rada for its second reading on 18 June. In January 2020, the first reading was passed, after being rejected in an initial vote in December. In the meantime, a new tax proposal for gambling, which would set a 5% GGR tax on bookmaking, 10% for online gambling and lotteries, and 12.5% for slot machines, has been filed by Marusyak.

Source: https://www.igamingbusiness.com/news/law-committee-ukraine-regulator-formation-unconstitutional

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