Earlier we wrote about future changes in the legislation of Ukraine. One of the most important changes in the draft law is the liquidation of KRAIL (as the current regulator) and the transfer of its authority to another body. Last week an electronic petition about gambling restrictions in Ukraine appeared. The basis for this petition were reports about the increase in gambling addiction among the military at the front.
The mentioned petition became the basis for discourse among both the Ukrainian population and representatives of the authorities. Against the background of the discussion among Ukrainian society, the Ukrainian Parliament accelerated the process of considering draft laws (one of which was introduced to the Ukrainian Parliament back in May last year). The Parliament of Ukraine was considering two draft laws on amendments to the gambling legislation.
Today, the Committee on Finance, Taxation and Customs Policy has recommended the adopted amendments to the gambling legislation. Based on the new regulation, in this article we will analyse the possible future changes. From our point of view we can underline the changes in advertising; functioning of gambling during war; status of KRAIL.
Advertising
Previously, Ukrainian legislation allowed gambling operators to advertise, including on the Internet and at sporting events (with minimal restrictions). Operators were not restricted in using opinion leaders, influencers, etc. The new amendments have tightened the regulation of gambling advertising. After today, we can conclude that gambling advertising is completely prohibited if draft law will be adopted. Gambling operators will not be able to advertise their activities at various public events, on the Internet, in the media, etc.
From our point of view, advertising is one of the factors of recognisability of gambling among the population. However, based on the data of the first Ukrainian report on gambling addiction conducted in the middle of 2023, 7 cases of gambling addiction were identified based on the Report (total number of respondents in online casino – 7386, sports betting – 1747, land-based casino and slot machines – 484). According to the results of the Report, it was indicated that gambling addiction does not have a high rate, even though it has a high level of popularity among Ukrainians. In the middle of 2023, 900 players on the register are restricted from gambling.
Thus, the presence of advertising in infospace before the change was recommended did not lead to serious changes in gambling addiction rates (even in times of war). Therefore, it is difficult to say now if such future restrictions will lead to positive changes.
Functioning of gambling in the war time
As we wrote earlier the adoption of the changes was a consequence of the discussion on restricting gambling during war. The new amendments establish the possibility of adding military men to the register of persons who are restricted from participating in gambling during the war.
KRAIL Status
The new legislation is aimed to liquidate KRAIL. A new executive authority will perform the functions of KRAIL, but the draft law itself does not give a clear answer as to which authority it will be.
Reporting issues
Previously, reporting by operators during wartime was cancelled – the draft law resumes such reporting. The amendments impose a penalty of 24 minimum wages if the operator fails to provide documents/information to the new executive authority. It also specifies two types of inspections: a) on-site inspection and b) testing under simulated conditions.
Operators must submit reports and other information to the new executive authority within 60 days of the draft law's adoption, covering the period for which they previously failed to submit them.
Next steps
After the Committee on Finance, Taxation, and Customs Policy of the Ukrainian Parliament approves the draft law for its first reading, it undergoes two readings in the Parliament. If the second reading is successful, the draft law will signed by the President of Ukraine, thus becoming legally binding.
We will inform you about further changes as soon as possible.
The mentioned petition became the basis for discourse among both the Ukrainian population and representatives of the authorities. Against the background of the discussion among Ukrainian society, the Ukrainian Parliament accelerated the process of considering draft laws (one of which was introduced to the Ukrainian Parliament back in May last year). The Parliament of Ukraine was considering two draft laws on amendments to the gambling legislation.
Today, the Committee on Finance, Taxation and Customs Policy has recommended the adopted amendments to the gambling legislation. Based on the new regulation, in this article we will analyse the possible future changes. From our point of view we can underline the changes in advertising; functioning of gambling during war; status of KRAIL.
Advertising
Previously, Ukrainian legislation allowed gambling operators to advertise, including on the Internet and at sporting events (with minimal restrictions). Operators were not restricted in using opinion leaders, influencers, etc. The new amendments have tightened the regulation of gambling advertising. After today, we can conclude that gambling advertising is completely prohibited if draft law will be adopted. Gambling operators will not be able to advertise their activities at various public events, on the Internet, in the media, etc.
From our point of view, advertising is one of the factors of recognisability of gambling among the population. However, based on the data of the first Ukrainian report on gambling addiction conducted in the middle of 2023, 7 cases of gambling addiction were identified based on the Report (total number of respondents in online casino – 7386, sports betting – 1747, land-based casino and slot machines – 484). According to the results of the Report, it was indicated that gambling addiction does not have a high rate, even though it has a high level of popularity among Ukrainians. In the middle of 2023, 900 players on the register are restricted from gambling.
Thus, the presence of advertising in infospace before the change was recommended did not lead to serious changes in gambling addiction rates (even in times of war). Therefore, it is difficult to say now if such future restrictions will lead to positive changes.
Functioning of gambling in the war time
As we wrote earlier the adoption of the changes was a consequence of the discussion on restricting gambling during war. The new amendments establish the possibility of adding military men to the register of persons who are restricted from participating in gambling during the war.
KRAIL Status
The new legislation is aimed to liquidate KRAIL. A new executive authority will perform the functions of KRAIL, but the draft law itself does not give a clear answer as to which authority it will be.
Reporting issues
Previously, reporting by operators during wartime was cancelled – the draft law resumes such reporting. The amendments impose a penalty of 24 minimum wages if the operator fails to provide documents/information to the new executive authority. It also specifies two types of inspections: a) on-site inspection and b) testing under simulated conditions.
Operators must submit reports and other information to the new executive authority within 60 days of the draft law's adoption, covering the period for which they previously failed to submit them.
Next steps
After the Committee on Finance, Taxation, and Customs Policy of the Ukrainian Parliament approves the draft law for its first reading, it undergoes two readings in the Parliament. If the second reading is successful, the draft law will signed by the President of Ukraine, thus becoming legally binding.
We will inform you about further changes as soon as possible.
