Ukraine dissolves gambling regulator, approved by President Zelenskyy

Ukraine has enacted a new law to dissolve its existing gambling regulator, creating a new authority to oversee betting activity. 

The Commission for the Regulation of Gambling and Lotteries (KRAIL) was liquidated after Law No. 9256-d was signed off by President Volodymyr Zelenskyy. 

A new authority will be established by April, as part of moves to establish a new government ministry with responsibility across the full spectrum of gambling and lottery in Ukraine. 

Within this remit, there will be action taken to cut access to various underground gambling websites and mobile apps and to target users with addiction issues.  

There will be requirements to manage live monitoring systems and player ID protocols, with additional expectations to promote responsible gambling, including play time limits and spending caps that must be enforced by operators.

The overhaul includes a significant scale back of gambling advertising, but it won’t be fully prohibited with exceptions granted for late-night slots on TV and radio, as well as platforms with a target audience over the age of 21.

Essentially, KRAIL will be succeeded by a central government body.

Ukraine’s gambling industry was legalized in 2020, but the background to the dissolution of KRAIL involved alleged bribery and improper conduct by high-ranking officials. 

In August 2021, Ukraine’s Anti-Corruption Bureau (NABU) held KRAIL officer Yehven Hetman on charges relating to a bribe of over $90,000. He was said to have issued licenses for approved gambling venues in the Chernihiv and Zaporizhzhia regions, without following the due procedure. 

NABU uncovered a trail of large amounts exchanged for the issuing of these licenses. 

Last month, there was further ignominy for KRAIL when its leader, Ivan Rudyi, was detained on suspicion of supporting the operation of a Russian-owned online casino within Ukraine’s jurisdiction.

An investigation found the body took no action to revoke a license beneficially owned by Russian nationals, while fears were expressed of national security concerns. This was due to the potential for Russian entities to access the personal details of serving Ukrainian military personnel who were users of the casino platform.

President Zelenskyy previously issued a decree banning the military from online gambling sites amid growing concerns about addictive behavior.

Image credit: Via Ideogram

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