A decree signed by Ukrainian President Vladimir Zelensky at the end of April limits the operation of online gambling websites in the country. A procedure for limiting gambling advertising was to be developed by the Cabinet of Ministers of Ukraine within a month, as well as introducing a number of restrictions on the organization’s structure, introducing a limit on gaming time, and conducting a nationwide information campaign about the dangers of gambling addiction.
More than 2,500 gambling websites operating without a license have already been blocked. An Ukrainian serviceman had written a petition stating that mass dependency was taking place in the armed forces, resulting in the loss of self-control among the military. The petition quickly reached the president after gaining the necessary number of votes.
In an interview with SBC Eurasia, Viktoriya Zakrevskaya, founding member of and deputy chairman of the Ukrainian Gambling Council (UGC), discussed Ukraine’s gambling situation and the details of the bill.
— Is there a problem with online gaming addiction in the country and how severe is the gambling problem among militaries?
— In Ukraine, there were 6,933 people registered with gambling problems as of May 3, 2024. First of all, it indicates that the procedure of self-restraint and restriction of relatives from gambling is effective. Every citizen, including military personnel and their families, has access to this mechanism. As a result, there does not appear to be a widespread problem of gambling addiction among the population, including military personnel.
Approximately 7% of the adult population – 1.4 million people – are potential players, according to the numbers. In other words, 6,933 “problem” players make up only 0.49% of the total. There are between 0.3% and 6.4% of adults in developed European countries that suffer from problem gambling.
Due to the war, it is difficult to obtain clear statistics regarding the population in the country; in addition, not all gambling addicts are included in the register. There is no way to justify talking about gambling addiction being a “pandemic” in the country.
— Although the government emphasizes the problem of addiction, what other provisions does the new law provide?
— There are several provisions in the law that lobby for lottery business interests, for example. There was already a bill 10101 on the agenda in February that turns lotteries into gambling companies without having to pay millions of hryvnia in taxes. Daniil Getmantsev, the head of the Verkhovna Rada’s tax committee, is one of its authors. A bill 9256-d was also introduced by him “on the liquidation of the Gambling and Lotteries Regulatory Commission, as well as strengthening controls over the gambling business.” This document transfers the functions of the Commission for the Regulation of Gambling and Lotteries (KRAIL) to the Ministry of Digital Transformation.
— Do you know the KRAIL’s opinion on this?
— Ivan Rudy, the head of the gaming commission, a veteran of the Russian war, spoke quite clearly: “For some reason, the Verkhovna Rada’s Tax Committee voted instantly for the bill “On the liquidation of KRAIL” under the guise of “saving gambling addicts in Ukrainian Armed Forces.” There is no logic in this decision. Liquidation of the body was not requested.”
Over the past few years, KRAIL has proposed measures to prevent lottery operators from legitimizing their manipulations. Their main concern is to eliminate state supervision of the lottery business. This hype about addiction is another attempt to discredit one of the few reforms in the country that has been implemented and monetized, which generates tens of billions of dollars in state revenues.
— In terms of advertising, what prohibitions does the bill provide?
— As a result of Presidential Decree N234 dated April 20, 2024, the Cabinet of Ministers established a procedure for limiting gambling advertising using brand advertising, including electronic communications, symbols of the Ukrainian Armed Forces and other military formations created in accordance with Ukrainian law.
There are also bans on:
- The registration of several client accounts for one player by Internet gambling organizers;
- When gambling online, gambling organizers are required to introduce mandatory breaks for each player during long periods of gambling;
- A player’s account can be closed if he wagers more than the monetary limit he declared during registration for a set period of time (days, weeks, months) that can only be changed once a month.
— Is there a possibility that this could spread to other segments of the population, citing ongoing hostilities?
— All players, not just the military, are subject to the new rules and procedures introduced by the Cabinet of Ministers until the end of the special legal regime of martial law.
— Several restrictions have been gradually introduced since gambling was legalized in Ukraine – could this lead to excessive regulation?
— The existing regulatory mechanism has several flaws, especially since only close relatives are able to add someone to this register. KRAIL recently proposed giving such powers to battalion commanders in times of war. Family members are often unaware of the moral and psychological state of military personnel. The command has a better understanding of those problems. It is now possible for deputies to introduce appropriate legislative changes quickly. It is important to note, however, that these changes will only affect legal websites.
There is no doubt that the majority of illegal websites have direct connections with the Russian Federation, so losing money on these platforms is actually funding the Russian war against us. Aside from destroying funds, illegal platforms also destroy personal information, including geolocation information. This can have catastrophic consequences not only for the players themselves but also for their fellow players.
— Do the authorities effectively combat black markets? In this fight, can the bill adopted in the first reading help?
Every day, the black market is feeling better. It is greatly assisted by officials who block legal gambling “until the circumstances are clarified” without any basis, relying only on their own “assumptions.” As a result, illegal websites give standing ovations to such decisions, increasing their traffic. Over 1,200 websites continue to operate without a license in Ukraine today and without any responsibilities towards their players.
Bill 9256-d actually strips all legal gambling organizers of the right to advertise their services, equates sponsorship with advertising, and forces them into the shadows. Liquidating KRAIL will reduce government oversight of the entire market. Economically, this will be detrimental to the country.
The document contains a provision that prohibits the organization of gambling for anyone who “owns directly or indirectly any share of a resident of a foreign state, a state that commits armed aggression against Ukraine.” The article generally covers all international gambling brands that have ever operated in Russia, even if they left after the start of the invasion. This ban does not have a time limit.
An official letter was already sent by the head of the UGC to the National Agency for the Prevention of Corruption (NAPC) regarding the need to thoroughly examine the bill’s anti-corruption provisions.
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