How casino legalisation laws are changing the iGaming industry

After more than a decade of gambling bans, Ukrainian casinos have been legalised again. To better understand how these legislative innovations have affected the gambling market, we turned to a legal expert – Dmitry Bondarev, a lawyer with many years of experience in the field of gambling law. We discussed several key issues and are now ready to share our insights.

How has the legalisation of gambling affected the gambling market in Ukraine?

A gambling market in Ukraine existed even before the law on the creation of regulatory frameworks for gambling was adopted. However, it operated illegally and needed to be countered. The solution to the problem was the legalisation of the gaming industry. This allowed large operators to enter the Ukrainian market, pushing out a significant part of the underground online casinos. Players themselves lost very little from this, as legal online casinos offer better security, privacy, and a wider range of services. It is also important to note that the legalisation of the gambling business contributed to the popularization of gambling, mainly due to advertising.

What did the state gain by adopting the law on the legalisation of gambling businesses?

If we consider this issue from an economic point of view, this is primarily an increase in revenues to the state budget due to licensing fees and taxes on profits. Secondly, the opening of gambling establishments stimulated the creation of new jobs in various areas related to the gambling business.

A promising direction could be investing in the gambling business in Ukraine. For example, the establishment of legal gambling states could be a particularly beneficial step. Unfortunately, now the situation is not so straightforward. High taxes and regulatory restrictions continue to create significant obstacles to the entry of foreign investors and gaming operators into the Ukrainian market.

What are the ambiguities in the current legislation?

The legalisation of the gambling business has become a huge step towards creating a transparent gambling market in Ukraine. However, the current gambling laws still have certain gaps and shortcomings that require further improvement. The main problems are the imperfection of the licensing system, contradictions in the articles of the gambling law, weak mechanisms for protecting against gambling addiction, and insufficient transparency of the criteria for selecting and evaluating applications for licenses. The behind-the-scenes situation remains even more complex and uncertain. In the past few years, the Ukrainian gambling market has experienced several major corruption scandals, which resulted in casino owners being accused of violating legal compliance and funds in the accounts of several major Ukrainian licensed casinos being frozen. 

Has legalisation changed the behaviour of gamblers?

We do not yet have enough statistical data to draw definitive conclusions regarding the change in the behaviour of gamblers. All regulated online casinos, including those operating in other jurisdictions, adhere to the rules of responsible gaming, but many players ignore them. The gambling culture in Ukraine is underdeveloped, and while gambling is often seen as entertainment in Europe, for many Ukrainians it is primarily an opportunity to win. Legalisation and popularisation of casinos have led to the emergence of many new players who have a superficial understanding of gambling and see it only as a chance to get easy money. These are some of the negative consequences of lifting the gambling ban. On the positive side, legalisation has enabled open educational initiatives and the establishment of psychological centres to assist individuals struggling with gambling addiction.

Conclusion

The legalisation of casinos in Ukraine is a complex process with potential positive and negative consequences. To minimise the negative effects, comprehensive market regulation, promotion of responsible gaming, and the development of a support system for addicted players are necessary. It is important to understand that legalisation and the introduction of official regulations are not panaceas in themselves. They only create certain conditions, and further developments will depend on many factors, including government policy, social norms and individual characteristics of each person.