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63% of Ukrainians consider lotteries to be gambling


The manipulations of lottery operators that lotteries are not gambling are nothing more than their attempts to avoid paying taxes and continue to operate illegally for as long as possible. This is a very profitable position that implies a "special" attitude to lotteries. However, the practice of developed gambling markets indicates that lotteries should be equated to gambling and fully pay taxes and licence fees. Moreover, 63% of Ukrainians think so.

For a long time, I have been emphasising in my posts that the state should pay attention to the illegal activity of lotteries and finally recognise them as gambling. After all, their illegal activity, which primarily consists of imitating gambling, not only creates inadequate conditions for competition in the gambling market, but also directly harms the state through the shortfall in taxes and licence fees.

Now, finally, it has become obvious that the demand for the recognition of lotteries as gambling exists not only among the conscious gambling business and the expert community, but also among ordinary citizens. Thus, according to a recent survey conducted by the Razumkov Centre, 63% of Ukrainians said that they consider lotteries to be the same kind of gambling as casinos or slot machines. The respondents also agreed that lotteries should pay taxes and licence fees like any other gambling organisers.

 Why is this recognition important?

First, most citizens perceive lotteries as gambling, which means that the argument for a separate status cannot be taken seriously. If the public believes that lotteries are a form of gambling, legislators should develop an appropriate legal framework to recognise them as gambling as soon as possible.

Secondly, the recognition of lotteries as gambling will increase the safety of players, as their operators will be obliged to adhere to the principles of responsible gambling, which they successfully ignore when operating illegally.

Thirdly, the recognition of lotteries as gambling will oblige their owners to obtain appropriate licences and follow certain business rules. This will lead to the streamlining of the lottery market and thus create more transparent and understandable conditions for its operation. The latter will also level the competition in the market, as both lotteries and other gambling organisers will operate in the same regulatory field.

Fourthly, if lotteries are recognised as gambling, they will have to pay not only licence fees but also relevant taxes. This means multibillion-dollar revenues to the state budget, as lotteries are a much more widespread and popular type of gambling than, for example, casinos or slot machines. Let me remind you that in the first 7 months of 2024 alone, legal gambling paid UAH 9.8 billion in taxes to the state budget.

The recognition of lotteries as gambling is one of the key conditions for the final formation of a legal gambling market in Ukraine. This is as important a step as the adoption of appropriate gambling tax legislation. It is also worth remembering that the legalisation of lotteries as a type of gambling will help to eliminate a significant segment of illegal gambling, which is represented by lottery operators today.

 

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