The new law outlines the establishment of a new regulatory authority tasked with overseeing the country’s gambling and lottery industries.
This legislative move includes expanded regulatory powers, stricter accountability measures for gambling operators, and a ban on gambling advertising.
The Verkhovna Rada, Ukraine’s parliament, passed the legislation in April 2024. It includes provisions to restructure the governance of the gambling sector by replacing KRAIL with a “central executive body.”
This new body will be responsible for formulating and enforcing state policy concerning gambling and lotteries within the parameters established by Ukraine’s constitution and laws.
Expanded powers
The new regulatory framework grants the incoming authority a range of responsibilities to strengthen control over the gambling market.
These responsibilities include drafting and approving laws related to gambling, setting licensing conditions, and managing real-time monitoring systems for gambling activities. Additionally, it will establish player identification protocols.
The authority will also draft methodological recommendations to promote responsible gambling.
These guidelines will include setting maximum daily and weekly playtime limits, requiring mandatory breaks during gambling sessions, and establishing spending caps that operators must enforce.
Not without cause
The decision to dissolve KRAIL and create a new oversight body was part of broader efforts to improve the regulation of Ukraine’s gambling sector, which was legalised in 2020.
The government identified inefficiencies and controversies surrounding KRAIL’s operations as factors necessitating reform.
KRAIL’s dissolution follows high-profile corruption investigations involving its leadership. In August 2021, the National Anti-Corruption Bureau of Ukraine (NABU) detained Yevhen Hetman, a member of KRAIL, on charges of accepting a bribe of $90,000.
Hetman was accused of soliciting the bribe in exchange for facilitating the issuance of gambling permits and licences, including permits for gambling premises in the Chernihiv and Zaporizhzhia regions.
NABU’s investigation uncovered a system of obtaining illegal benefits in large amounts for the issuance of such permits and licences.
This past December, Ukrainian authorities detained Ivan Rudyi, head of the KRAIL, on suspicion of supporting a Russian-owned online casino operating within Ukraine.
The State Bureau of Investigation (SBI) reported that under Rudyi’s leadership, KRAIL issued and deliberately refrained from revoking a licence to a commercial entity beneficially owned by Russian nationals.
Despite assessments indicating the casino’s operations posed a threat to national security, KRAIL took no action to revoke the licence.
Authorities also expressed concerns that Russian entities could have accessed the personal data of Ukrainian military personnel who were customers of the casino. During searches, investigators reportedly found a significant quantity of cocaine in Rudyi’s possession.
Enhanced accountability for gambling operators
Law No. 9256-d introduces increased penalties for gambling operators that fail to comply with regulations. The new law emphasises strict adherence to licensing conditions, responsible gambling practices, and advertising bans.
Operators who violate these provisions will face substantial fines. The complete prohibition of gambling advertising aims to prevent gambling promotion, particularly to vulnerable populations.
Dingnews.com 07/01/2025