At the current stage, the Ukrainian gambling market is under serious pressure due to a number of legislative initiatives, especially the draft law 9256-d. This initiative, despite its stated intentions, raises many questions, as it worsens the conditions for legal gambling organisers in Ukraine, while creating extremely favourable conditions for illegal gambling operators, including lottery operators. Such an imbalance greatly impairs the attractiveness of the Ukrainian gambling jurisdiction, as it creates an unfavourable regulatory environment.
As in Ukraine, developed Western markets also have a trend towards restricting gambling advertising. However, there is a balance there that allows legal organisers to adapt to new conditions. In Ukraine, with the new bans on gambling advertising introduced by 9256-d, legal companies found themselves at a severe disadvantage, as their promotion opportunities were significantly reduced. This created an information vacuum that was quickly filled by illegal gambling operators, who found themselves in a more advantageous position than before the adoption of 9256-d. And legal brands that comply with the law lost the ability to adequately compete for players, which is inherently contrary to healthy competition.
Draft law 9256-d not only strengthens control over gambling, but also lays the groundwork for schemes by lottery operators seeking to strengthen their positions in the market. If this document did not contain such "schemes", it might be taken more seriously. However, its provisions lead to the destruction of the legal gambling industry in Ukraine and create repressive working conditions for legal organisers.
In addition, the ban on advertising for legal gambling organisers, while illegal operators continue to use such opportunities, leads to a decrease in the investment attractiveness of Ukraine as a gambling jurisdiction. Unclear tax terms and approaches only complicate market regulation. And even changes in tax rates will not have a positive impact if experts cannot clearly define tax terminology and make it understandable for all market players, eliminating double interpretation. Surprisingly, such simple changes as a clear definition of terminology can increase tax revenues to the budget.
It should be understood that legal gambling in Ukraine is not just a source of taxes. It is an infrastructure that encourages the development of new industries and improves the economic situation in general. Therefore, if government agencies want to ensure the stable and efficient functioning of the gambling market, they need to facilitate the development of legal businesses by providing them with new opportunities and alternatives to promote and sell their services.
Today, it is important that government initiatives aim to develop the legal market rather than destroy it. This will not only ensure budget revenues, but also create a sustainable system of control and protection of players' interests. The way to achieve this is through clear regulation, transparent policy and support for those who abide by the law. This is the only way to achieve the right balance in the gambling market.
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