Regulation of the gambling sector by the state is quite complex and multidimensional, given the special attention of society to the activities of gambling companies. One of the tools to prevent the negative consequences of excessive involvement in gambling is to prevent attempts to use credit funds to place bets.
For this purpose, in November last year, were adopted certain legislative amendments, in particular, to the Law of Ukraine "On Consumer Lending", which expressly prohibit entering into a consumer loan agreement with persons included in the Register of Persons Restricted from Accessing Gambling Facilities and/or Participating in Gambling (the "Register") if it contains information about the use of credit funds by such persons to place bets. The Law also establishes the obligation of a lender to check the availability of information on how previous loans were used by contacting credit bureaus before entering into a consumer loan agreement.
For such a mechanism to work, a number of changes had to be introduced to the bylaws and the technical ability to access and exchange information between CRGL, banking institutions and credit bureaus had to be implemented. And finally, the system of such checks started working on July 25 this year.
It is worth noting that it contains a number of undoubted advantages, primarily in the systemic protection of individuals and society from gambling addiction. In particular, banks will be able to avoid issuing loans to people with gambling problems. Checking the presence of gambling addicts in the Register will allow lenders to be more cautious about granting loans.
People who have gambling problems will be able to limit their spending of credit funds on gambling establishments. In this way, banks assume their responsibility to society by helping those with gambling addictions avoid financial problems. This will also help reduce the number of non-performing loans and maintain the financial stability of the banks themselves.
At the same time, the introduction of additional regulation related to the dissemination of personal data also carries certain risks of breach of confidentiality, data reliability, and bias on the part of lenders.
Therefore, lenders must adhere to strict rules regarding the processing of personal data. And since more than 95% of all data in the Register is entered on the basis of personal requests from players and/or their relatives, there is a possibility of errors or distorted data due to human error. Therefore, the information on credit obligations of those entered in the Register will require additional verification. Banks should take this into account when making decisions to avoid unreasonable loan denials.
In general, although allowing banks to check the Register of Gamblers has many more advantages than disadvantages, it is important to balance these aspects to achieve effective control and a high level of social responsibility.
To conclude the topic of borrowing money, it is worth reminding once again that gambling is primarily entertainment, not earnings. Loans are a business support tool used for its development. Therefore, one should not confuse leisure with work. And the state, represented by CRGL, will ensure that credit resources are not used for gambling. At least in the legal gambling segment.
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