Vardan Meliksetyan about online gambling market in Ukraine
The total value of the gambling online market in Ukraine reaches about $ 3.6 billion.
The CEO of EyeMotion, Global Gaming Vardan Meliksetyan about online gambling market in Ukraine.
How attractive is the Ukrainian gambling market for investments?
As a software provider company, Eyemotion follows different markets development. Latest changes in Ukraine iGaming industry, I mean the latest law, which will provide an opportunity for new and existing operators to get local license and do business in Ukraine, is very interesting. We made a quick Ukraine market analyze, with population 41.7 mln there is nearly 3.6 billion valuation iGaming market.
How do you assess the quality of the new law on gambling, which was recently signed by the President in terms of conditions for business?
We have data, that total 138 domains, online casinos work, worked and also were blocked by Ukraine government. It means there is non regulated and big market nearly 900,000 players and 43,000 gamblers. Every new law must be better than the previous( non regulated ) version. It’s hard to say and analyze now how this law and documents will work in real life, but as normal practice shows, government change and updates laws.
Are you considering entering Ukraine immediately after the regulator is formed and licenses are issued?
As software provider we’re interested to provide our products to new and existing operators. But also we have CrossGaming brand, which is in development process, with new great casino platform. We have some positive signals from Ukrainian investors and partners to enter that market, but final dissection isn’t done.
Which segment of the gaming market are you interested in and why?
We have strong experience in online casino and online sport betting is new for us, but we partnership with top software providers, who provide us one of the best solutions. Having this strong background, we’re interested to target this market.
According to your estimates, how much investment does the operator need to start working in Ukraine in this segment?
To say how much operator needs to start iGaming business in Ukraine, we need to do more deeply analyze, prepare marketing plan, marketing strategy. But according to Armenian market, where we have some research data, needs minimal $10 mln.
What is the approximate payback period of such investments?
I would like to answer this question with real example, but without mentioning the operator’s name. The operator who started in 2017, has net income: $480,000 and damage net profit: $4mln in 2018. I think payback will be after 4-5 years.
How competitive will the Ukrainian gambling market be compared to neighboring jurisdictions? Why is that?
As I have mentioned, more than 138 domains, operators targeted Ukraine, and it means that black market was too big. After this law, if it’s be real equal opportunity for all operators, this operators can make Ukraine market more regulated, more transparent, for players, for government, and they can gather taxes.
We have experience of analyze in Armenian, Georgian, some African markets. If we compare Armenian, Georgian ones with Ukraine markets, in Armenia license price is too high, and market is too small. Now about Georgia, they provide more comfort able opportunity, for different areas they have different license fee and is easier to work in Georgia, than in Armenia.
Summerising this talk, I would like to say, that after 1-2 years it will be clearer how this market will really work and how comfortable it will be for operators.
