Risks and prospects of the new draft law on gambling in Ukraine

At first glance, the new draft law on gambling, which was passed in the first reading on April 24, 2024, should be a step towards greater regulation and control in this area in Ukraine. However, according to Anton Kuchuhidze, the Chairman of the All-Ukrainian Gambling Council, the text of the document not only does not meet the requirements of transparency and adequacy, but can also become the basis for corruption schemes and the reduction of state control.

One of the main aspects that causes concern is the changes to the Law of Ukraine "On Advertising", which provide for restrictions on the advertising of the services of legal gambling organizers. This can lead to an increase in the shadow sector and the difficulty of controlling the industry.

Also, the draft law proposes the liquidation of KRAIL and the creation of two separate bodies to regulate betting activities and the lottery market, which may lead to a decrease in state influence on the gambling market.

Equally important is the likely negative impact on foreign investors due to restrictions on their activities in Ukraine. In particular, the rule prohibiting those who have any stake in residents of foreign countries that have ever conducted activities on the territory of the Russian Federation from being organizers of gambling games may cause serious restrictions for international companies.

An important problem is also the deliberate use of ambiguous wording and "half-rules", which creates a serious potential for corruption. The draft law should be subject to a thorough anti-corruption examination in order to avoid negative consequences for society and the country's economy.

Solving these problems can be an important step for the development of the gambling industry in Ukraine, ensuring an open and transparent market that meets the highest standards of ethics and legal responsibility.