Prospects of SOMS – data-driven governance and market de-shadowing

The transfer of gambling market regulation to the Ministry of Digital Transformation has driven a number of trends in the industry. One of the most significant is the digitalization of interaction processes between the regulator, gambling operators, and players. In addition, such innovations help more effectively track player behavior and prevent the spread of gambling addiction.

The Committee on Digital Transformation has finally presented a working version of the first phase of the State Online Monitoring System (SOMS). This innovative system is capable of processing 10,000 transactions per second, recording all interactions between players and gambling operators. The duration of gaming sessions, bets, payout volumes, and deposits—all of this can be tracked by the system in real time, 24/7. This enables rapid response to violations and creates a foundation for tax automation (GGR, personal income tax).

From the perspective of reducing the shadow economy and combating gambling addiction, even the first stage of the system’s implementation is a significant step forward. The introduction of the second phase, expected by the end of this year, will strengthen efforts against tax manipulation and improve player safety through enhanced personal data protection. However, it should be noted that before intensifying the fight against tax manipulation, it is necessary to address issues related to the double taxation of winnings, unify tax terminology, and define tax rates.

The Ministry of Digital Transformation also plans to simplify access to the register of individuals with gambling addiction in order to facilitate self-exclusion for players. Another advantage of the full implementation of SOMS should be a clear understanding of the size of the legal market and a practical distinction from the black market. This will put an end to statistical manipulation by certain politicians on this topic, providing the state with a clear technical view of the issue.

Nevertheless, despite significant progress in the regulation of gambling, many gaps still remain. To a large extent, these persist due to the low prioritization of the issue among lawmakers, who do not always fully understand the sector’s potential in terms of budget revenues and investment attractiveness. However, what matters is that systematic work is being carried out at this level as well. This gives hope that, ultimately, all components of gambling reform will be brought to their logical conclusion, and the market will function in line with developed Western jurisdictions.