How a Global Esports Leader Built Its Legal Base in Ukraine

A New Frontier: Esports in Ukraine

Ukraine’s esports industry has been rapidly evolving, with its cities hosting high-profile tournaments and local talent earning global recognition. As the digital competition scene expanded, our client—a world-class esports tournament operator—saw strategic potential in entering the Ukrainian market.

They envisioned more than just hosting events. Their plan was to lay down a lasting legal and financial presence: a base of operations from which to coordinate player relations, manage payouts, and work closely with Ukrainian sponsors and teams.

But ambition alone wasn’t enough. Ukraine’s legal system, particularly around esports, remains a patchwork. Entering the market without experienced legal guidance could lead to missteps. That’s why they came to Intermarium.

The Hurdles They Faced

No Clear Playbook for Esports Regulation

While esports is officially a recognized sport in Ukraine, there’s no clear framework that governs tournament platforms or the distribution of prize funds. Different ministries and regulators interpret gaming activities inconsistently.

This left the client exposed. Without a consistent licensing path, they risked falling into legal grey areas—particularly when dealing with large-scale contracts, brand partnerships, and payments to international players.

International Prize Payouts and Ukrainian Tax Law

The platform had a global payout system for players, with contracts spanning numerous countries. But bringing this model to Ukraine raised concerns:

• Would Ukrainian tax authorities view player income as local or foreign?
• Would transfers in and out of Ukraine fall under strict currency control?
• Could prize money be taxed twice?

These questions required immediate, reliable answers.

Legal Structure: Subsidiary or Representative Office?

The client’s legal presence in Ukraine had to align with both business and compliance goals. A representative office was easier to set up but limited in scope. A full subsidiary provided flexibility—but brought complexity in taxation, licensing, and employment.

Each model posed unique legal and financial outcomes. Choosing the wrong one could block future partnerships or limit revenue potential.

Financial Monitoring and AML Compliance

With transactions moving in multiple currencies and jurisdictions, the client had to prove AML compliance to both Ukrainian and international banking institutions. Even minor missteps in financial protocols could trigger account holds or regulatory scrutiny.

Intermarium’s Legal Game Plan

We offered more than legal advice—we built a foundation for scalable success. Our team of gaming law attorneys and online gaming lawyers rolled up their sleeves to deliver a hands-on solution.

Step 1: Mapping the Legal Terrain

First, we dove deep into the local esports environment—reviewing everything from sports legislation and tax codes to fintech and online gaming regulations. Where direct laws were missing, we drew parallels from related legal areas like online streaming and IT services.

We also audited existing Ukrainian treaties and foreign currency laws to identify safe paths for transferring prize money and operational funds.

Step 2: Choosing and Building the Right Structure

Together with the client, we ruled out the representative office approach. It would have limited their ability to sign contracts or pay staff directly.

Instead, we registered a fully compliant Ukrainian subsidiary, carefully structured to:

• Minimize tax liabilities
• Support full business operations
• Manage local employees

We drafted all necessary corporate documents, advised on shareholder agreements, and ensured alignment with the client’s global compliance model.

Step 3: Prize Payments Without Penalties

Esports is about rewarding performance. But how do you pay out winnings without triggering audits or overpaying taxes?

We designed a model that:

• Applied Ukraine’s tax treaties to prevent double taxation
• Met legal requirements for cross-border payments
• Aligned with the National Bank of Ukraine’s foreign currency rules

The result: no tax penalties, no delayed transfers, and over 30% savings in projected tax burdens.

Step 4: Securing Compliance from Day One

To satisfy local regulators and global banks, we reviewed the client’s financial procedures line by line. Our gaming attorneys:

• Audited fund flows for AML risks
• Helped the client open bank accounts with esports-friendly institutions
• Built internal policies for ongoing compliance and staff training

By launch day, they had the structure and protocols needed to operate with zero legal friction.

The Outcome: Ready for Growth

Within a short span, the client’s Ukrainian operation was live. More importantly, it was:

• Legally registered and authorized to conduct business
• Staffed and operational under local employment law
• Equipped with tax models and bank accounts for seamless prize payments
• Fully compliant with AML standards
• Strategically positioned for future expansion in Eastern Europe

Lessons for the Industry

Ukraine is full of esports talent and opportunity—but legal clarity isn’t guaranteed. What this case proves is simple: with experienced legal counsel, businesses can build a secure path even through legal uncertainty.

Whether you’re an international tournament platform or a digital game developer, having online gaming lawyers who understand both local context and global demands is critical.

At Intermarium, we don’t offer theory—we offer results. If you’re planning to enter Ukraine’s gaming market, we’ll help you do it legally, smartly, and with confidence.