The country hopes that the new law will help protect vulnerable consumers, who have been disproportionately impacted by the activity, as well as close a few other known loopholes
Ukrainian President Volodymyr Zelenskyy has signed Law No. 4116-IX which brings amendments to the country’s existing gambling framework, with a particular focus on consumer protection.
Swathe of Changes Pass to Gambling Law in Ukraine
The new law focuses on combating problem gambling and gambling addiction and applies a fresh set of expectations to companies that offer gambling products on the territory of the country. Zelenskyy signed the law on Friday, January 3, 2025.
The law also seeks to overhaul the current gambling regulator, whose boss was arrested over allegations of corruption and ties to a popular Russian gambling website, which was allowed to operate on the territory of Ukraine in breach of local law.
KRAIL is to be dissolved with the formation of a new regulatory body that will execute and oversee the industry moving forward, and from April 1, 2025, onwards.
Ukraine is also making a firm step forward with the country also taking swifter measures against both illegal gambling websites and mobile applications, as well as passing laws that are going to focus on regulating advertising better.
Ukraine has also chosen to ban gambling advertising in media for people over 21, as well as in search engines. The restriction applies to the same age group. The country will allow the advertising of gambling products on TV and radio during the night, as the currently planned exemption from the ban.
This is a significant step forward for Ukraine, and the country has shown itself capable of passing tough regulations in a matter of months. In places such as the United Kingdom, for example, gambling advertising and its prohibition are still subject to heavy debate, stalling a reform of the existing laws.
Ban on Ads, Famous Personalities, and Better RG Measures
In the meantime, military personnel, popular figures, and volunteers may not be part of gambling advertisements or otherwise have a relationship with gambling platforms. This is akin to the Dutch ban on popular personalities which prohibits such famous people from collaborating with gambling platforms. One part of the new law that could be seen as restrictive, however, is the way payments in gambling can be made.
Ukraine wants and will limit all payments to bank payments only, banning all other forms of gambling. There is a fear that other payment providers would make it harder to track gambling-related harm, and more pressingly – links to illegal gambling websites.
The law further reaffirms and outlines the licensing procedures for companies, and states that entities and persons linked to the aggressor country, i.e. Russia, may not obtain licenses in the country. Ukraine is also making another ambitious step further in the way it plans to issue licenses to gambling companies.
Automating and Perfecting the Licensing Process
Mykhailo Fedorov, deputy prime minister for innovation, education, science and technology and minister of digital transformation wants to remove the “human factor” from the licensing process, leaving it instead to automated processes that are tamper-proof.
In the meantime, the former regulator has also been accused of failing chiefly in developing and enforcing a responsible gambling framework to help shield players from harm and specifically failed to enforce a restriction on the gambling habits of people listed in the national self-exclusion registry.
