Lottery License

Many people around the world dream of hitting the multimillion jackpot by participating in lotteries. The lottery is a completely random gambling game, the outcome of which does not depend on the knowledge, skills and experience of the gambler, and potentially anyone can get rich. The participant becomes the winner if the random number generator produces the numbers indicated in his or her ticket, both in paper and electronic form.

Lotteries have been and remain one of the most popular gambling types. The involvement of people around the world is colossal, since the online segment is actively developing. This obliges operators to conduct socially responsible business and make the game safe for society

In many, especially in European countries, lotteries are allowed, but they can only be conducted under a license. In the United Kingdom, Italy, France, Austria, Hungary, Belgium, Bulgaria, Estonia and other countries, national lotteries operate very successfully. Pan-European lotteries are also very popular, played by citizens of several EU countries at the same time (EuroMillions, EuroJackpot and Vikinglotto). Traditionally, the largest prizes are raffled off in the American lotteries, where jackpots reach $ 1.5 billion.

As for Ukraine, the situation with lotteries is rather peculiar: they are not recognized as a gambling activity, while at the same time they meet all its characteristics. The Ukrainian lottery market is monopolized by the state represented by three operators, and it is almost impossible to enter it.

There are several types of lotteries:

  • instant lottery – the information about whether a ticket is a winning one or not is laid down already at the stage of issuance in the form of a numbers or pictures set. That is, the gambler knows whether his or her ticket has become lucky immediately after the purchase. The disadvantage of such lotteries is that rather small amounts are raffled off, and it is very difficult to hit the jackpot;
  • draw lottery – is held at a certain time and when buying a ticket it is impossible to know its outcome. As a rule, draw lottery is conducted live on television or online on the Internet;
  • online lottery – you can play both on websites and in mobile applications. Online lotteries offer standard bets (individual ticket), syndicated games (game with several gamblers) and combo bets (standard ticket + syndicated bet).

Under current conditions, it is most profitable to operate at the online market, which is not limited to the territory of a single country, is available 24/7 and allows clients to play without leaving their homes. Traditionally, in order to create an online lottery, VigoLex team recommends obtaining licenses of Malta, Curacao or Gibraltar. VigoLex lawyers have experience in obtaining gambling licenses in different jurisdictions and will be able to help beginning entrepreneurs to start a legal business.

In addition to obtaining a license in the most profitable jurisdiction, those wishing to establish an online lottery need to resolve many issues:

  • development of a business strategy;
  • gathering a team of professionals;
  • opening bank accounts and/or connect to payment systems;
  • software development (a website or a mobile application);
  • acquirement of licensed services of random number generation;
  • preparation of all necessary documents, policies, public offers;
  • organizing accounting services and marketing.

VigoLex team has regularly serviced the gambling business from the conceiving of the business idea to the establishment of all business processes, solution of all legal issues. Our success is the success of our clients; therefore, we are interested in helping to realize the client’s wishes, but with legal competence and with the greatest benefit for the business.

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    Although the Law of Ukraine “On the regulation of activities related to the organization and conduct of gambling and lotteries” does not classify activities related to the organization and conduct of lotteries as gambling, obtaining a license is mandatory in accordance with the Law of Ukraine “On State Lotteries of Ukraine”.

    The state body that controls and regulates the work of lotteries in Ukraine is the GLRC – the Gambling and Lotteries Regulation Commission.

    In accordance with the Law of Ukraine “On State Lotteries of Ukraine”, the fee for a license to issue and conduct lotteries is 28,000 (twenty eight thousand) minimum salaries established as of January 01 of the year in which the decision to issue a license is made, that is, in 2021 the cost of the license constitutes UAH 168,000,000. However, the license is issued for 10 years and the specified license fee is paid annually in equal installments during the term of validity of the license.

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