Ukraine dissolves gambling regulator, passes sweeping changes

Ukrainian President Volodymyr Zelenskyy has signed into law a list of amendments, collectively referred to as Law No. 4116-IX, and aimed at strengthening the country’s gambling industry, with a particular emphasis on responsible gambling, tighter advertising rules, and consumer protection.

Ukraine moves forward with sweeping gambling changes

Notably, Law No. 4116-IX dissolves the national gambling watchdog, or KRAIL for its Ukrainian acronym, and replaces it with yet to be yet-to-be-established new body. The shuttering of the regulator comes after Ukraine arrested on suspected treason charges Ivan Rudyi, the watchdog’s boss, who is said to have not stepped up and blocked a website linked to Russia.

Russia invaded Ukraine’s territory as part of an all-out war in February 2022, and Ukraine has passed multiple amendments to its gambling laws to ensure that illegal casinos or casinos tied to Russian citizens are not funding the aggressor country’s war machine.

The new law, though, is far more ambitious than anything that Ukraine has voted on and enforced. The new regulator is due to arrive on April 1, and it will be presiding over a completely different industry.

Ukraine is de facto suspending gambling advertisements, except for the night hours when gambling ads will be available on the radio and TV, enacting an important change that has been avoided by many more mature markets, such as the United Kingdom, for example.

There are now clearer rules about who can advertise gambling, with popular personalities and athletes prohibited from associating themselves with gambling companies for the purposes of advertising.

Direct marketing by gambling operators has also been prohibited, as companies will no longer be able to use free bonuses, welcome offers, messaging or calls to lure customers in. Betting on credit has also been banned under the new law signed by President Zelenskyy.

To make sure that Ukraine can stay on top of the money flows, the country is also going to limit the available payment solutions to banks only, eliminating the fear of using alternative payment methods that can obfuscate the destination of the money and thus fund an illegal casino in Russia.

Gambling in Ukraine continues to grow despite war challenges

The law similarly reiterates that a person associated with Russia may not obtain a license to offer gaming products. Such ties must always be disclosed.

Under its new mandate, the yet-to-be-setup gambling regulator will seek to also address problem gambling and ensure that the national self-exclusion registry is used by licensed operators, who block vulnerable consumers.

Under the leadership of KRAIL, these measures were largely overlooked. Several months ago, Nevada Gaming Holding bought the biggest gambling operator in Ukraine, which owns Cosmolot, Spacesiks LLC.

Online casino suppliers have been similarly keen to continue expanding their local reach in the country, including Greentube, which launched its titles in Ukraine at the end of October.

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