Effectiveness of the national gambling market regulator, the Commission for Regulation of Gambling and Lotteries (CRGL) in terms of the operational costs of the institution and the revenues received by the state budget as a result of its work continues to grow despite the war.
For example, last year, state treasury revenues from license payments by legal gambling organizers totalled UAH 1.166 billion. This was 98% of the revenue plan established during the peacetime by the Law on the budget for 2022. If we compare this amount with the amount of expenses for organizing the work of CRGL itself (which is UAH 107 million) planned by the country's main financial document, it turns out that the "return on assets" was almost 1,000%, that is, the state's income exceeded expenses on the gambling sector 11 times.
The result of the current year already exceeds last year's both absolute and relative indicators. Thus, according to the budget plan of expenditures for 2023, UAH 86.8 million of financing was allocated for the CRGL. As soon as 31 August 2023, receipts to the State Budget from license fees amounted to more than UAH 1.163 billion. That is, for 8 months of 2023, the revenue almost equalled the amount for the entire year of 2022. If we add to this the income for the period from September to October 2023, which is UAH 361.1 million, then the total amount for 10 months will total a record UAH 1.5241 billion! That is, the year has not yet ended, and the CRGL has already brought the state 17.6 times more than the expenditures on the Commission.
Let me remind you that since the beginning of the operation of the CRGL in 2020, a total of 6,112 licenses and permits for conducting economic activities have been issued. Thereby, revenues of the state budget of Ukraine from license fees for activities in the field of organizing and conducting gambling totalled UAH 4.226 billion.
"Currently, when the country needs financial support and growth, filling the state treasury is more important than ever. It is vital for both the front and the rear. And we continue to do everything so that the revenues will only increase", Chairman of the CRGL Ivan Rudyi said. And the revenues are really increasing.
However, license payments are not the only thing thanks to which the CRGL can supplement the state budget. In particular, since October 2, amendments to the Law of Ukraine "On Advertising" entered into force, according to which the CRGL is empowered with new powers to control advertising in the field of organizing and conducting gambling. In addition to that, the CRGL received the authority to apply financial sanctions to breakers of the legislation on gambling advertising in the amount of 300 (three hundred) minimum wages, which is currently 2,010,000 hryvnias. Therefore, fines from breakers of the advertising legislation will soon also be transferred to the budget.
It is also worth reminding that in the event of a violation of the player identification procedure, which allowed a person under the age of 21 to participate in gambling, or a person included in the Register of persons who are restricted from accessing gambling establishments and/or participating in gambling, a fine of 500 (five hundred) minimum wages shall be applied to the gambling organizer. Keeping this Register and the right to impose fines is also the responsibility of the CRGL. Over three years, data on 2,655 persons were entered into the Register based on the processing of 3,392 appeals from citizens (in particular, applications for self-restriction/restrictions and reports of violations).
Further improvement of the effectiveness of the national regulator will depend on the Parliament and government officials, as well as the conditions that will be created for the development of gambling in Ukraine, since investments go where it is easier and safer to do business.