The legal gambling market in Ukraine is under continuous pressure from illegal gambling and lottery operators who continue to operate outside the law. In particular, the advertising of lotteries operating without proper licences poses a serious threat to the development of the legal market and has a negative impact on the state budget. Even the recent adoption of Law 9256-d is unlikely to significantly change the situation in the near future.
Illegal lottery activities continue. Lottery operators still do not have the appropriate licences, illegally imitate gambling, and do not pay any taxes. Advertising of their services has not disappeared and constantly attacks players on the Internet.
Illegal lotteries actively use modern advertising campaigns. They use catchy slogans, unique offers, and aggressive marketing strategies to convince consumers that their services are safe and legal. This not only misleads people, but also gives them the false impression that they are participating in a legitimate game. Illegal operators essentially take advantage of loopholes in the regulatory framework to make excessive profits and do not guarantee any rights to players. At the same time, legal organisers are experiencing more and more pressure and restrictions on advertising their services.
However, the negative impact of illegal lottery advertising is not limited to this.
In fact, advertising is the engine that helps finance the industry's underground activities, as lottery operators do not pay taxes, putting legal players who honestly fulfil their obligations to the state at risk. Lottery operators that simulate gambling rely on the fact that their activities will remain unchecked, while legitimate organisers operate under strict scrutiny and constant regulatory pressure.
This state of affairs leads to a significant imbalance in the market. Legal market participants, who pay billions of hryvnias in taxes and licence fees annually, find themselves in a situation where lottery operators operating in the grey zone have a clear competitive advantage. While officials and law enforcement agencies focus their attention on controlled legal market participants, illegal lotteries enjoy impunity.
In addition, advertising of illegal lotteries can have harmful consequences for consumers. It can lead to the development of gambling addiction, especially among vulnerable groups. When players involved in the game fail to realise the potential risks, it actually creates conditions for financial and mental problems. As a result, such players fall prey to illusions of easy winnings, which are eagerly exploited by illegal gambling operators, including lottery operators.
At the current stage, when the state should focus on combating illegal lottery activities, measures should be taken to control gambling advertising. Instead of bans, which usually prove to be ineffective, it is worth considering strategies aimed at strengthening the regulation and control of lottery advertising campaigns. This will not only reduce the information noise created by illegal operators, but also protect players from fraud.
Examples of such measures include the recognition of lotteries as gambling and clearly defined rules for gambling advertising, the requirement to obtain appropriate licences, and stricter penalties for those who violate the law. This will stabilise the competitive environment and ensure the protection of players' rights.
Thus, illegal lottery advertising is a serious problem for the gambling market in Ukraine. It not only depletes the state budget, but also harms legal businesses, creates risks for consumers and undermines the foundations of healthy competition. The sooner this issue is resolved, the better it will be for everyone - legal market participants, players, and the state budget.
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