Combating the gambling industry: Zelensky has signed a law to dissolve the Gambling and Lottery Regulation Commission (KRAIL).

Ukrainian President Volodymyr Zelensky has signed a law concerning the gambling industry, titled the Law on Amendments to Certain Legislative Acts of Ukraine Aimed at Combating Gambling Addiction (Ludomania) and Improving State Regulation of Activities Related to the Organization and Conduct of Gambling and Lotteries.

Source. This was reported by the press service of the head of state.

The Chairman of the Committee of the Verkhovna Rada of Ukraine on Finance, Taxation, and Customs Policy, Danilo Hetmantsev, explains what this law entails.

1. The abolition of the Gambling and Lottery Regulation Authority (KRAIL) and the redistribution of its powers between the relevant ministry and a newly created body without a collegial status.

2. A ban on advertising gambling, except for a limited list of permitted methods, and a prohibition on sponsorship, with the exception of sports sponsorship.

3. Modernization of state supervision tools for the gambling market – the introduction of controlled gaming as a monitoring tool to replace actual inspections.

4. Implementation of effective measures to combat ludomania, blocking illegal websites, tightening requirements for organizers, adding grounds for license revocation, establishing a requirement for organizers of gambling to conduct all cashless transactions exclusively through banks, and improving requirements for the State Regulatory Authority, among other things.

5. Improvement of legislation regarding state lotteries, particularly establishing similar requirements for ownership structure, impeccable business reputation criteria, grounds for license revocation, branding requirements, as well as requirements for transactions during state lotteries.

6. Amendments to the Law of Ukraine “On the Protection of the Interests of Reporting Entities and Other Documents During Martial Law or State of War” regarding the resumption of reporting by gambling organizers and operators of state lotteries, among other things.

Background. Recall that on December 4, the Verkhovna Rada voted for the adoption of the law aimed at strengthening control over gambling activities.

The law provides for:

• the implementation of a mechanism to restrict access to illegal gambling websites and applications;

• a ban on advertising the gambling business, except for exceptions – advertising allowed on television and radio during nighttime, as well as on web resources for individuals over 21 years old;

• a prohibition on the participation of military personnel, volunteers, and public figures in gambling business advertising, among other things.