The Verkhovna Rada Committee approved the bill on strengthening control over gambling business

On April 4, Deputy Chairman of the Parliamentary Committee on Finance, Tax and Customs Policy Yaroslav Zheleznyak said that the Verkhovna Rada Committee on Finance, Tax and Customs Policy approved as a basis the draft law No. 9256d on the liquidation of the Commission on Regulation of Gambling and Lotteries, as well as on strengthening control over the gambling business.

What does the bill provide for?

• Elimination of the Gambling and Lotteries Regulatory Commission and transfer of the regulator's functions to the Ministry of Digital Transformation.
• Tougher requirements for gambling organizers.
• Stricter requirements for gambling advertising. In particular, we are talking about a ban on advertising on the Internet, speculation on the topic of war and volunteering, a ban on sponsorship.
• It is proposed to increase fines for violations in this area from UAH 2.1 million to UAH 4.2 million (from 300 to 600 minimum wages).
• Monitoring of the Internet to identify websites and/or mobile applications that provide access in Ukraine to gambling without a license (including clear response mechanisms to block access).
• Identification of additional tools to restrict visits to gambling establishments and participation in gambling for potentially vulnerable categories of the population for the period of martial law

• The bill envisages the introduction of a compensation mechanism in favor of a player who was allowed to participate in a gambling game by the organizer despite the self-restrictions declared by the player. The authors of the bill believe that such a step will encourage players to check organizers and report violations.

The law contains quite a few norms to tighten the requirements for advertising. In particular, the draft stipulates that gambling advertising is prohibited:

• in any audiovisual and auditory media regardless of the technology of their distribution;
• in online media;
• in all printed media (except for specialized publications dedicated to gambling);
• in all publications (except specialized publications dedicated to gambling);
• by means of internal advertising;
• on transportation, including vehicles and equipment;
• by means of advertising events;
• by means of outdoor advertising;
• in places of mass events;
• on the Internet, including on video sharing platforms and information sharing platforms;
• offering or providing any direct or indirect reimbursement of expenses for access to participation in gambling;
• placing an image or reference to gambling, trademarks, other objects of intellectual property rights, under which the activity of organizing and conducting gambling is carried out, as well as other designations under which gambling is conducted, on any goods (items), except for placement on goods (items) related to the organization and conduct of gambling;
• sending messages to an indefinite number of persons by mail, e-mail, mobile communication means.

In addition, according to the bill, advertising of gambling games is prohibited:

• Participation of persons under the age of 21, including as photo models;
• participation of volunteers and/or military personnel, as well as persons whose appearance imitates the appearance of military personnel;
• participation of popular persons or direct or indirect approval of gambling by popular persons, as well as the use of images and references to the names of popular people, heroes of cinema, TV and animated films, authoritative organizations;
• participation of sportsmen, doctors and other professional medical workers, as well as persons whose appearance imitates the appearance of sportsmen, doctors;
• use of themes related to deterrence and repulsion of armed aggression of the russian federation during the period of the legal regime of martial law, as well as any patriotic appeals and/or symbols aimed at ensuring state sovereignty, security and defense, patriotic education or any other means to create a deceptive impression of the connection between participation in gambling and repulsion of armed aggression of the russian federation.

Violation of the relevant requirements will be punishable by sanctions, including license revocation.