President of Ukraine Volodymyr Zelenskyy signed Law No. 4116-IX on amendments to certain legislative acts of Ukraine to combat gambling addiction (ludomania) and improve state regulation of activities related to the organization and conduct of gambling and lotteries. According to the website of the Verkhovna Rada, the draft law was sent for signature by the President of Ukraine on December 9, 2024, and returned with his signature on January 3, 2025.
According to the law, by April 1, 2025, a new authorized body will be created instead of KRAIL and a ministry will be designated to formulate policy in the field of gambling and lotteries.
The law also introduces a mechanism for restricting access to illegal gambling websites/mobile applications, and prohibits gambling advertising (with the following exceptions: on TV and radio at night, in media for people over 21, on platforms and search engines with a target audience over 21).
In addition, it is prohibited to offer or reimburse expenses for participation in gambling, make phone calls, send messages to an indefinite number of people, and offer free bonuses instead of placing bets and accepting bets on credit or with subsequent payment.
The advertisement itself prohibits the participation of military personnel, volunteers, popular figures, as well as the use of war-related topics.
The law also prohibits persons who are owners or officials of gambling companies that have tax or license arrears, sponsorship, except for sports sponsorship, from obtaining a license.
According to the adopted law, payments for gambling will be made exclusively in cash through current bank accounts, and the use of other payment services is prohibited.
It is emphasized that the law makes lotteries subject to most of the restrictions on the gambling business: requirements for the reputation of officials, tax debt, relations with the aggressor country, and exclusively bank payments.
As for licenses for state lotteries, foreign entities with relevant experience are allowed to obtain them.
The law also clarifies the rules on the mandatory use of cash registers by gambling businesses, the rules on the impossibility of obtaining a license by persons associated with the aggressor country, namely, the use of their brands is prohibited, limits on expenses and game time, as well as mandatory breaks are set.
The law also introduces “control purchases” during video-recorded inspections.
As reported, on December 4, 2024, the Verkhovna Rada supported the draft law No. 9256d on strengthening control over the gambling market and liquidating the Commission for Regulation of Gambling and Lotteries (CRGL) in the second reading and by 239 votes in total.
According to Mykhailo Fedorov, Deputy Prime Minister for Innovation, Education, Science and Technology and Minister of Digital Transformation, the essence of the law is to reorganize the CRGL and remove the human factor from the license issuance process. Further, to digitalize licenses so that they are issued automatically according to clear criteria and to start implementing an online monitoring system.
Prior to that, on March 29, 2024, Pavlo Petrychenko, a soldier of the 59th Brigade of the Armed Forces of Ukraine, registered a petition asking the president to pay attention to the harm that online casinos and ludomania (gambling addiction) cause to the Ukrainian army and society. By the evening of the same day, the petition had gained over 26 thousand votes. The President of Ukraine instructed the heads of the Security Service of Ukraine, the State Special Communications Service, the Ministry of Digital Transformation, and the Secretary of the National Security and Defense Council to collect analytics on the operation of online casinos and propose their decision next week.
According to Danylo Hetmantsev, chairman of the parliamentary committee on finance, tax and customs policy, this situation is related to the inactivity of the CRGL, which was created three years ago. He believes that the regulator did not develop responsible gambling rules separately for both organizers and players and organized “selective control in the best corruption traditions” rather than total control over the organizers’ compliance with the requirements to restrict access to gambling for persons listed in the Register of Self-Restrictions.
