In early December, the Verkhovna Rada of Ukraine adopted in the second reading and in general the draft law No. 9256-d "On Amendments to Certain Legislative Acts of Ukraine" in order to combat gambling addiction (ludomania) and improve state regulation of activities related to the organisation and conduct of gambling and lotteries. Let's analyse its main provisions.
Firstly, the text of the law does not properly formalise the implementation of control mechanisms for the implementation of its provisions, primarily because regulatory functions are proposed to be distributed among several state institutions that will be responsible for the formation and implementation of state policy in the field of gambling. Therefore, it is worth recalling once again that although the draft law contains good intentions, it is important that control and monitoring mechanisms are clearly defined to ensure the effective implementation of the law.
Secondly, the draft law contains potential loopholes that could be used by unscrupulous operators to circumvent the law. In particular, lottery advertising remains virtually unchanged, so lottery brands can be used as a cover for advertising other types of gambling.
In addition, I would like to remind you that legislative changes alone will not solve the problem of gambling addiction. We need programmes to educate and raise public awareness of the risks of gambling.
At the same time, it is worth highlighting certain positive aspects, in particular, the expansion of opportunities for advertising legal gambling, which should indeed lead to a better organisation of the regulation of marketing activities in the gambling industry.
There are several positives here. This includes the gradual reduction of the illegal market, as when legal organisers are able to advertise their services, it can reduce the attractiveness of illegal gambling sites. And improved consumer awareness, as legal advertising helps players get more information about safe and responsible gambling practices and the risks associated with gambling. And guaranteed control over gambling advertising activities by the state regulator, which, based on the law, establishes clear rules on how and where gambling can be advertised, which helps prevent aggressive or illegal advertising.
Another important function of legal gambling advertising is social. Thus, gambling advertising can perform a certain social function, in particular, through the financing of sports programmes and initiatives.
Many countries use a part of gambling revenues to support sports, education, healthcare, and social projects. For example, they finance sports teams and events, support sports infrastructure, provide additional funds for sports programmes for young people and incentives for children and adolescents to promote a healthy lifestyle, etc.
However, it is important to ensure transparency in the use of these funds and to monitor their effectiveness. Involving the public in the process of allocating funds can help ensure that they are used for the benefit of society. And a crackdown on illegal advertising by law enforcement will ensure that the black market gradually declines and that the industry as a whole is regulated.
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