The issues of transparency and responsibility in gambling and lotteries are important topics for public discussion, and therefore, facts are gradually beginning to reduce the influence of the myth that has dominated the public's perception of gambling over the years of gambling prohibition.
In particular, the level of openly negative attitudes towards gambling, which were and still are based on the activities of illegal operators, is gradually decreasing. Many politicians who used to criticise gambling have changed their rhetoric somewhat, seeing the positive impact of legal gambling on the economy due to the significant amount of tax revenue generated by licensed gambling market organisers.
However, a legislative peculiarity that allows a separate sub-sector of the gambling market to be "unaffected" by general regulation and taxation has remained unaddressed by MPs. We are talking about lotteries, which still remain "non-gambling" in Ukraine and whose activities are regulated by a separate Law of Ukraine "On State Lotteries in Ukraine". By the way, despite the name of the law, lotteries are private, and their "statehood" is only a definition of their status.
The unique status and separate position in the market for a long time allowed lottery operators not only to receive large revenues and excess profits from purely core activities, but also to successfully imitate almost all types of gambling without paying either licence fees or taxes required by the state from gambling organisers. In addition, lottery operators, compared to gambling organisers, are not subject to restrictions on: participation in the game by persons under the age of 21; distribution of game tickets; advertising of their services, etc.
However, these privileges were not enough for the lotteris, and only the fruitful work of detectives of the Bureau of Economic Security of Ukraine at the end of August this year stopped the fraudulent scheme of illegal organisation and conduct of gambling and betting activities on the Internet, which was disguised as state lotteries. Only after the BES blocked the lottery operators' websites did MPs pay attention to the problem of "non-gambling gambling" and the meagre taxation of lotteries.
It is surprising that MPs needed the help of law enforcement agency to see this problem. After all, it is worth noting that ordinary Ukrainians have been seeing it for a long time, and not only seeing it, but also loudly stating it when answering questions in opinion polls.
Thus, in a study conducted by the Razumkov Centre sociological service between 20 and 28 June this year, in response to the question "Do you think that lotteries are the same kind of gambling as sports betting and online casinos, and therefore they should be taxed equally?", the majority of respondents (63%!!!) said "Yes", another 14% were undecided and only 23% said "No".
So, perhaps, the Verkhovna Rada will finally pay attention to public opinion and adjust the current legislation in accordance with it, as well as the global practice of all civilised countries where lotteries are a form of gambling.
It is important for all market participants, including lottery companies, to report their income and taxes. This will not only ensure fair competition but also increase public trust in these activities. Transparency in financial reports and compliance with the law can be the basis for further development of the industry.
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