The legislation mandates the liquidation of the Commission for the Regulation of Gambling and Lotteries (KRAL) and introduces comprehensive restrictions on gambling advertising.
Establishment of a New Regulatory Body
In place of KRAL, the bill proposes the establishment of a new authorized body by April 1, 2025. This entity will be responsible for forming and implementing policies related to gambling and lotteries within Ukraine. The transition aims to enhance regulatory oversight and adapt to the evolving gambling landscape.
Key Provisions of the Bill
Member of Parliament Yaroslav Zheleznyak outlined several critical measures included in the legislation:
1. Restricting Access to Illegal Gambling Platforms
- Introduction of mechanisms to block access to unauthorized gambling websites and mobile applications, ensuring that only licensed operators can offer gambling services.
2. Regulating Gambling Advertising
- Prohibition of Gambling Ads: Complete ban on gambling advertisements with specific exceptions:
- Television and Radio: Allowed only during nighttime broadcasts.
- Age-Restricted Media: Permitted in media targeting audiences over 21 years of age.
- Digital Platforms: Allowed on platforms and search engines with content tailored to audiences over 21 years.
3. Bans on Specific Gambling Promotions
- Reimbursements and Expenses: Prohibition of offering or reimbursing expenses for gambling participation.
- Mass Communication: Ban on unsolicited telephone calls and messages promoting gambling.
- Free Bonuses: Restriction on offering free bonuses as incentives for placing bets.
4. Restrictions on Personnel and War-Related Themes
- Military and Volunteers: Prohibition of participation of military personnel and volunteers in gambling activities.
- Public Figures and War Themes: Ban on involving popular figures and using war-related topics in gambling advertising.
5. Licensing Restrictions
- Disqualification Criteria: Individuals who were former owners or officials of gambling companies with outstanding tax debts or license fees are barred from obtaining new licenses.
- Foreign Entities: Only foreign entities with relevant experience are eligible to obtain licenses for conducting state lotteries.
6. Financial Transactions and Sponsorships
- Cash Settlements: All gambling transactions must be conducted in cash through current accounts in banks. The use of other payment services is prohibited.
- Sponsorship Limitations: Only sports sponsorships are permitted, with all other forms of sponsorship being banned.
7. Operational Regulations
- Robotic Regulatory Officers (RRO): Clarification of mandatory RRO usage by gambling businesses.
- Licensing Restrictions for Aggressor-Associated Individuals: Prohibition of license acquisitions by persons associated with the aggressor country, including bans on using their brands.
- Spending and Gaming Limits: Establishment of expenditure limits and mandatory breaks during gambling sessions.
- Control Purchases: Introduction of "control purchases" during inspections, accompanied by video recording.
- Betting Restrictions: Ban on accepting bets on credit or with subsequent payments.
8. Lotteries
- Stringent Regulations: Lotteries face the most extensive restrictions, including reputation requirements for officials, prohibition of individuals with tax debts or ties to the aggressor country from obtaining licenses, and exclusive use of bank settlements.
Support from Parliamentary Committees
The Rada Committee endorsed the restrictions on gambling advertising and the liquidation of KRAL, highlighting the need for stringent regulations to combat gambling addiction and ensure the integrity of the gambling market.
Government's Ongoing Efforts to Control Online Gambling
The Ukrainian government has previously imposed restrictions on the operation of online casinos. President Volodymyr Zelenskyy convened a meeting with representatives from the Security Service, the State Special Communications Service, and the Secretary of the National Security and Defense Council (NSDC) to address the proliferation of online casinos. Following this, on April 20, Zelensky implemented the NSDC's decision to restrict online gambling activities.
Legislative Recommendations and Future Steps
The Parliamentary Committee on Tax Policy had earlier recommended the adoption of the revised Bill No. 9256-d, emphasizing the need to combat gambling addiction (ludomania) and enhance state regulation over gambling and lottery operations. The committee underscored the importance of these measures in fostering a controlled and responsible gambling environment.
Conclusion
The Verkhovna Rada's approval of Bill No. 9256-d marks a significant overhaul of Ukraine's gambling regulatory framework. By dissolving KRAL and introducing stringent advertising and operational restrictions, the legislation aims to curb illegal gambling activities, protect vulnerable populations, and ensure a transparent and fair gambling market. The establishment of a new regulatory body by April 1, 2025, will further solidify Ukraine's commitment to effective governance and public health in the gambling sector.
