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The process of forming a new regulatory institution in the gambling sector is complicated


It is already the second month since the adoption of the Law of Ukraine No. 4116-IX introducing a number of significant regulatory changes in the domestic gambling market. One of the innovations of this law is the liquidation of the current state regulator of the gambling market - the Commission for Regulation of Gambling and Lotteries - and the transfer of its powers to another state institution by 1 April 2025.


February 1 is coming soon, so there are two months left to form a new central executive body that will implement state policy in the field of organising and conducting gambling and lottery (as defined in the text of the law). However, so far, there is no clear plan on the sidelines of the government to create it or transform the old body into a new one. There is even no common position on the name.


The situation is further complicated by the fact that the CRGL currently lacks a quorum, which not only blocks the adoption of any management decisions, but also makes it impossible to carry out full-fledged work on preparing the transfer of the already accumulated assets to the new structure, as there is simply no one to do it. As a result, not only are many cases concerning new licences simply put on hold, but preparations for the resignation of the NRDC and assistance in the formation of another state institution are also on hold. It cannot be otherwise, because there is no one to transfer the cases to, and the new body has no staff at all.


I would like to remind you that two months before the statutory deadline for the start of the work of the successor to the CRGL, it is necessary to determine the structure of the new regulatory body, including its functions, powers and organisational composition, i.e. to appoint its management and key employees. The government must amend existing regulations, and the parliament must also approve some of them, to ensure funding for the successor to CRGL, as the state budget for 2025 was adopted before Law No. 4116-IX came into force.


At the same time, it is necessary to recruit qualified personnel with experience in gambling regulation, law, finance and information technology, as the law requires the prompt implementation of the State Online Monitoring System, and it will not work on its own without specialists.


It is also important to establish a dialogue with gambling organisers to understand their needs. This requires a detailed action plan with clear deadlines and responsible persons for each stage of the formation of the gambling regulator that will replace CRGL.


Only when these conditions are met effectively can the formation of a new state gambling regulatory body be completed within the tight deadline of 1 April this year.


Therefore, it is now in the interests of the state, business and society to do everything possible to ensure that CRGL gets a quorum and resumes its work as soon as possible, and at the same time, a general concept of state regulation of the gambling market should be presented from the 1st of April 2025 with a clear definition of the powers, functions and structure and personnel of the new regulatory body.


In addition, during the transfer of powers, a communication plan should be developed and implemented to inform the public about the new rules on the gambling market and measures aimed at protecting consumer rights. The state's regulatory activities should primarily be aimed at ensuring a balance between the interests of business, the state and consumers.

 

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