It has been six months since the Government adopted amendments to the CMU Resolution No. 566 of 17 May 2024 "Some issues of counteracting the negative consequences of gambling on the Internet", which effectively banned any legal advertising of gambling and betting in Ukraine.
Over the past six months, the Verkhovna Rada has failed to resolve this issue at the legislative level. As a result, the ban on gambling advertising is still in effect and is damaging both legal businesses and state and local budgets, as limited opportunities for business activities lead to a decrease in the amount of taxes paid.
The gambling market is not an exception to the general rules of functioning of all economic sectors. When the working conditions of the white segment of the market become more difficult, its black segment grows stronger.
This situation needs to be corrected, as the ban on legal advertising of Ukrainian gambling licensees, in addition to direct financial losses for the country, has also led to a significant increase in illegal advertising, primarily on the websites of the aggressor country.
Therefore, control over gambling advertising by the national regulator (CRGL) and other state institutions, rather than its prohibition, is a more effective approach to regulating the marketing activities of gambling companies.
Firstly, it helps to increase the level of consumer protection against false and unfair information. Controls can ensure that advertising is ethical, truthful and not misleading to consumers. This may include restrictions on the target audience to prevent advertising to minors or vulnerable groups, which, incidentally, is already provided for in the current legislation.
Secondly, the use of a system of control measures allows for constant supervision of legal gambling and advertising agencies and, accordingly, ensures that the state receives tax revenues from the distribution of such advertising. Instead, the ban leads to the growth of the illegal market, where there is no control.
Thirdly, the use of control instead of prohibition is an element of prevention of problematic behaviour among some consumers of services provided by legal gambling market organisers. Advertising controls can include information campaigns that raise awareness of the risks of gambling and offer resources for those who may have gambling problems.
What elements can a control system consist of? Let's consider the introduction of a moderate option that is sufficiently balanced in terms of the ratio of administrative resource use and time to form. It should include at least five basic components.
1. Monitoring and auditing: regular monitoring of advertising campaigns for compliance with legislation and ethical standards.
2. Cooperation with media: establishing cooperation with media companies to ensure compliance with gambling advertising rules.
3. Regular educational campaigns: conducting public awareness campaigns about the risks of gambling and responsible gambling.
4. Consumer feedback: creating mechanisms for collecting feedback from consumers on gambling advertising, which will allow timely response to possible violations.
Thus, controlling gambling advertising can be an effective tool to ensure consumer safety, support the legal market, and prevent gambling-related problems.
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