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Changes in the gambling legislation of Ukraine

2024-11-27 10:43 INDUSTRY NEWS AND INSIGHTS REGIONAL NEWS AND COMMENTARIES
Today, November 27, the Tax Committee of the Ukrainian Parliament recommended the adoption of draft law "On Amendments to the Gambling Law" №9256-d in the second reading.

Context

The reason for the appearance of this draft law was the active public discussion in Ukrainian society of the problem of gambling addiction among the military this spring.

Initially, the draft law, adopted in the first reading on April 24, proposed strict restrictions on gambling: a complete ban on advertising, reorganization of the Gambling Commission, fines and additional license requirements.

After a pause of almost six months, deputies returned to work on this issue. Adopting the draft law at a meeting of the Tax Committee means that it can be considered by Parliament and, if supported, will come into force.

The version approved by the committee differs significantly from the version adopted in the first reading:

Advertising is allowed:

· On the Internet, but should not be targeted at persons under 21;
· On TV from 11 p.m. to 6 a.m.;
· Sponsorship remains possible only in the field of sports.

Regulator:

· Gambling The Commission is liquidated and an agency is created in its place, which will be controlled by the Ministry (which - the Cabinet of Ministers will determine if the law is adopted);
· The regulator gains the authority to set limits on the game (time and money);
· The supervisory powers and types of sanctions for violations are also significantly expanded
· The regulator will also be able to block illegal sites.

B2B:

· To date, non-resident companies can supply software without obtaining a Ukrainian license. It is proposed to remove this option.

Payments:

· Payment systems are prohibited from servicing gambling, operators will have the opportunity to make payments exclusively through a bank.

Lotteries:

· It is proposed to reduce the requirements for operators during the war and to allow foreign operators with experience in holding lotteries to take part in the competition for a lottery license.

4H Agency Comment

We have been deeply immersed in gambling issues in Ukraine for many years. And this is not the first attempt to reform the market in our memory. Unfortunately, the previous ones were not successful.

As for the proposed provisions, in general, the intentions look positive, a strong regulator can restore order and minimize illegal operations, advertising, especially online, is necessary, the lottery market has long needed a restart, and the issue of tax on winnings has been discussed almost from the first days of legalization.

Therefore, we hope that this time the attempt will be successful and we will be able to observe the development of gambling in Ukraine.