Almost a month has passed since the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine to Fight Gambling Addiction and Improve State Regulation of Gambling and Lotteries" came into force, but certain negative trends, especially in the context of advertising, are still evident.
Although the new law aims to improve the situation in the field of gambling and lotteries, its effectiveness depends on the actual implementation of the rules and control over advertising activities. We can already see a lack of clear and adequate mechanisms for implementing its provisions.
Due to the lack of properly prescribed mechanisms, many legal gambling organisers cannot fully adapt their advertising campaigns to the new requirements of the law in a short time, and are forced to postpone the launch of advertising campaigns to avoid incurring penalties for violating the law. At the same time, illegal operators, who use the current situation to make money, do not face this problem.
As for other unresolved issues that are expected to be resolved this year, there remains an inequality in the rules for advertising activities and services between gambling and lotteries. Given the inequality in the "rules of the game" between gambling market organisers and lottery operators, the latter may gain a significant advantage, which is a violation of the principles of equality in doing business.
To solve this problem, it is important to create fair conditions for all market participants. Without equalising advertising rules, the advantage will always be on the side of lottery operators, who also pay much less licence fees and taxes to the state budget than gambling organisers.
But there are also positive aspects. Yes, the fact that legislative norms have expanded the opportunities for gambling in the advertising sector is a definite plus, but, as I have already mentioned, the bylaw-making process is not yet up to date with the new rules of operation.
As for the successes in combating illegal advertising and blocking illegal gambling websites and smartphone apps, it is worth mentioning the cooperation in this area between domestic regulatory and law enforcement agencies and companies such as Meta Platform Inc. (owner of social media platform Facebook) and Alphabet Inc. (owner of search giant Google), Apple Inc. that began in 2024 and continues this year.
I would like to remind you that the final entry into force of Law No. 4116-IX will take place on 1 April 2025, along with the establishment of a new gambling regulatory body. Therefore, the further development of gambling in Ukraine should be aimed at equalising the rules of the game for lotteries and all other gambling entities.
Recognising lotteries as gambling at the legislative level will significantly change the situation on the market. It will create unified rules for doing business, which will ensure fair competition between all legal organisers and help avoid inequalities that arise due to different approaches to regulation.
Equalising advertising opportunities is also an important step to ensure a level playing field. If lotteries and gambling have the same opportunities to promote their services, it can lead to greater market transparency and better consumer protection.
In addition, it is important to take into account social aspects such as responsible gambling and protection of vulnerable groups. A balanced approach to regulation will help to create a healthy environment for the development of the gambling industry in Ukraine, which can also have a positive impact on the economy and ensure an increase in state budget revenues.
Comentarios