The Committee on Finance, Tax and Customs Policy has recommended the approval of draft law No. 9256-d in its second reading, introducing a series of stringent measures that overhaul the current gambling framework.
Key Amendments to the Gambling Legislation
1. Liquidation of KRAL
One of the most notable changes is the dissolution of the Commission for the Regulation of Gambling and Lotteries (KRAL). In its place, a new authorized body will be established, slated to become operational by April 1, 2025. This transition is expected to streamline regulatory processes and enhance the effectiveness of oversight within the gambling sector.
2. Combating Illegal Platforms
To address the proliferation of unauthorized gambling activities, the draft law introduces a robust mechanism for blocking illegal gambling websites and mobile applications. This measure aims to curtail access to unregulated platforms, thereby reducing the incidence of unlawful gambling practices.
3. Advertising Restrictions
The new regulations impose strict limitations on gambling advertising:
- Prohibited Advertising: All forms of gambling advertising are banned.
- Allowed Exceptions: Advertising is only permissible during nighttime hours on television and radio broadcasts, and solely on platforms with audiences over 21 years old.
These restrictions are designed to minimize the exposure of vulnerable populations to gambling promotions.
4. Prohibition of Offering Bonuses
The draft law forbids the offering of bonuses in the gambling sector. Specifically, it excludes:
- Reimbursement of Game Costs: Players cannot receive refunds for their gambling expenses.
- Bonus Offers Without a Bet: Promotions that provide bonuses without requiring a bet are disallowed.
- Mass Mailing of Messages: Sending bulk promotional messages related to gambling is prohibited.
5. Settlements Only Through Banks
Gambling transactions must now be conducted exclusively through current bank accounts, eliminating the use of alternative payment services. This measure aims to enhance financial transparency and reduce the risk of money laundering within the gambling industry.
6. Restrictions on Participation of Persons with Debts
Individuals with tax or license debts will be prohibited from obtaining new gambling permits. This restriction is intended to prevent financially distressed individuals from engaging in gambling activities that could exacerbate their debt situations.
7. Prohibition of Brands of the Aggressor Country
The law prohibits the use of brands associated with the aggressor country in the gambling sector. This measure aligns with broader efforts to isolate and sanction entities linked to hostile nations, thereby limiting their influence within Ukraine’s market.
8. Limits on Spending and Playing Time
To curb excessive gambling, the draft law establishes:
- Spending Limits: Caps on the amount of money individuals can spend on gambling activities.
- Playing Time Limits: Restrictions on the duration of time spent gambling.
- Mandatory Breaks: Requirements for mandatory breaks during gambling sessions to prevent compulsive behavior.
9. Sponsorship Only in Sports
The draft law restricts gambling company sponsorships to sports only, prohibiting such entities from sponsoring other sectors. This targeted approach aims to reduce the visibility of gambling brands in non-sporting contexts.
Additional Regulatory Enhancements
Strict Checks and Monitoring
The draft law mandates strict monitoring of gambling establishments through:
- Control Purchases: Conducting undercover operations to assess compliance with regulations.
- Video Recording: Implementing surveillance systems to ensure transparency and accountability in gambling venues.
Extension to Lotteries
Most of the introduced restrictions will also apply to lotteries, enhancing the transparency and regulation of this related sector.
Objectives of the New Regulations
The overarching goals of the approved draft law include:
- Strengthening Control: Enhancing regulatory oversight to ensure the gambling industry operates within legal boundaries.
- Combating Illegal Practices: Reducing the prevalence of unregulated and unlawful gambling activities.
- Minimizing Social Impact: Mitigating the negative effects of gambling on society by implementing protective measures for individuals.
Official Statements
Danylo Getmantsev, head of the Committee on Finance, Tax and Customs Policy, emphasized the significance of the revised draft law:
“The document has been significantly revised to address the emerging challenges in the gambling sector. These changes are crucial for ensuring a fair and transparent gambling environment in Ukraine.”
Prime Minister Denys Shmyhal echoed these sentiments, highlighting the government’s commitment to protecting citizens from the adverse effects of gambling.
Implementation Timeline
The Verkhovna Rada is expected to finalize and adopt draft law No. 9256-d in the coming weeks. Once approved, the new regulations will be implemented in stages, with full compliance expected by 2025.
Conclusion
Ukraine’s move to tighten control over the gambling industry through the approval of draft law No. 9256-d represents a significant step towards enhancing regulatory oversight, combating illegal gambling practices, and protecting society from the potential harms associated with gambling and lotteries. These measures reflect the government’s proactive approach in addressing the complexities of the gambling sector and ensuring its operations align with national interests and public welfare.
