On 2 October 2023, amendments to the Law "On Advertising" came into force in Ukraine, which relate to the regulation of gambling advertising. These changes open a new phase of the fight against unacceptable gambling advertising. The legislative updates expand the powers of the Commission for Regulation of Gambling and Lotteries (CRGL) to control gambling advertising, require from gambling organizers to be more responsible, and increase sanctions for violations of the rules regarding the content, format, and distribution of advertising messages.
Although slowly, important legislative changes do occur. Finally, the time has come to give CRGL real powers to regulate gambling advertising. From now on, the Commission will be able more effectively to monitor compliance with restrictions and requirements for gambling advertising, both online and offline. Due to the pressure on advertising distributors, it will be much more difficult for illegal businesses to advertise their services with impunity, because the fine for violating the rules will amount to more than UAH 2 million.
The changes should really be considered first of all as an effective tool to combating illegal businesses, because they are the main violators. Legal gambling organizers drew attention to the need to regulate and arrange gambling advertising at the very beginning of the market operation. As a result, they concluded the relevant Memorandum on the basis of the Ukrainian Gambling Council. This step highlighted a key difference between legal and illegal markets. While licensed organizers seek to self-regulate and enforce rules, illegal gambling businesses are engaged solely in violating them. This trend is the basis for understanding the current situation in the gambling advertising market.
Firstly, the Memorandum was a demonstration of the market's demand for clear rules of the game, and they were eventually implemented. Legislative changes outlined standards and limits for advertising campaigns, which will help create ethical and safe conditions for players and facilitate compliance with the principles of responsible gaming.
Second, legal gambling organizers in Ukraine already have a high degree of responsibility towards the society and the law. Changes in the legislation are aimed at strengthening this trend and helping licensed companies to create even more responsible advertising campaigns.
Third, the ability to apply financial sanctions to violators of the requirements of gambling advertising legislation will certainly increase discipline in the industry and facilitate the fight against illegal businesses. According to CRGL, currently there are more than 1,100 illegal web-sites targeting Ukrainian consumers. The absolute majority of these web-sites, as well as illegal ones in general, have connections with the russian federation, which is completely unacceptable in conditions of war. In addition to allowing ruscists to make money off Ukrainian players, it gives them access to their personal data, which puts their personal safety at risk, and therefore can be used as an economic tool of war against our state.
Legislative changes in the regulation of gambling advertising in Ukraine are a step towards greater responsibility and control in this field. They will give CRGL more effective tools to fight against illegal businesses.