Assessment of the investment attractiveness of the ukrainian lottery market for foreign lottery operators in the context of recent legislative changes

Toporetska, Z., Pohoretskyi, M., & Vazhynskyi, V. (2025). Assessment of the investment attractiveness of the ukrainian lottery market for foreign lottery operators in the context of recent legislative changes. Baltic Journal of Economic Studies, 11(1), 281-286. https://doi.org/10.30525/2256-0742/2025-11-1-281-286

The lottery market has always been interesting for investors, because unlike the gambling business, the lottery business is always socially responsible and socially useful. For a long time, Ukraine had a state monopoly on the lottery market, which excluded foreign investors from launching and conducting lotteries in Ukraine. However, in early 2025, a law came into force that opened up the possibility for investors to obtain this right. The article is aimed at an economic assessment of the lottery market in Ukraine, analysis and comparison of the Ukrainian legislation regulating the activities related to the issuance and conduct of lotteries, and calculation of costs and benefits of a foreign lottery operator as a foreign investor in case of making a decision to conduct lotteries in Ukraine. Currently, the lottery market is divided among three lottery operators that received their licences before 2012. The authors have studied the economic indicators of the lottery market for the period 2020-2023 and found that, despite high market turnover, lottery operators showed small revenues from this activity. After assessing the costs of setting up a business in Ukraine, the authors conclude that, given the current indicators, a foreign investor is unlikely to be able to return the investment in 10 years (the term of the licence to issue and conduct lotteries). Therefore, the organisation of interstate lotteries jointly with lottery operators in Ukraine seems to be a more promising area for investment. Such lotteries have already gained popularity in Europe as they offer significantly higher prizes than national lotteries. The organisation of such lotteries does not require significant investor costs, as they will be conducted on the existing material and technical base of national lottery operators in Ukraine. The introduction of such lotteries is seen as promising for raising funds for the post-war recovery and reconstruction of Ukraine.