The ban on gambling advertising was a very unpleasant event for the legal gambling market in Ukraine. From the very first months, it has led to a number of negative consequences, the main one being the strengthening of illegal gambling operators and their media presence. Effective control over gambling advertising may be a better solution than a complete ban. Allowing legal organisers to advertise their services will not only improve the market situation but also better protect consumers.
The ban on legal gambling advertising has led to an increase in the number of advertisements for illegal gambling brands, including those associated with rashists. Therefore, the ban, which was aimed at reducing the level of "ludomania", in particular among the military, did not fulfil its function. Instead of restricting players' access to information about gambling, it increased their awareness of illegal gambling brands. As legal brands are unable to advertise their services, illegal gambling brands quickly filled the information vacuum, leading to an outflow of players to illegal platforms.
This created a dangerous situation in which consumers of services were unprotected from the arbitrariness of illegal operators and favourable conditions for illegal operators to operate. As a result, the imbalance between the legal and illegal gambling segments has grown even more, and licensed brands have become hostages to their legal status.
So, if the ban didn't work, maybe we should think about another way? You don't have to go far to find out. It is worth looking at the gambling market in developed countries with billions of dollars in turnover. You will not find strict prohibitions in the US and Western European markets. Regulation and control - yes, but not outright bans.
This approach is practiced in these markets for a reason, as comprehensive regulatory legislation, by establishing clear rules for doing business, increases competition, making legal companies better, the gaming environment safer, and creating obstacles for illegal operators. Here are a few simple examples of why, for the same area of gambling advertising, tighter regulation is much more beneficial than an outright ban.
Firstly, legal advertising of licensed brands will reduce the "information noise" created by illegal operators. Accordingly, players will be less likely to play on illegal sites, which means they and their funds will be more secure.
Secondly, gambling advertising is a source of additional revenue for the media. Legal organisers are ready to invest in advertising, which stimulates the development of the media industry and provides new budget revenues. These funds can be spent on social responsibility programmes and support for those facing problems related to, for example, gambling addiction.
Thirdly, toughening regulatory legislation in any area forces companies to improve the quality of their products and services by bringing them into line with certain standards. Unlike prohibitions, this approach contributes to the gradual development of market participants rather than the decline of their business.
Overall, the situation with gambling advertising by legal brands in Ukraine needs to be rethought. Instead of a ban, effective control mechanisms should be introduced to help not only protect players but also support legal businesses. This will allow Ukraine to create a competitive gambling market where the rights of players are protected and the state budget is filled by legal brands, rather than suffering losses due to illegal gambling.
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