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When will lotteries start paying?

  • Writer: Viktoriya Zakrevskaya
    Viktoriya Zakrevskaya
  • Oct 30
  • 2 min read
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It has been several years since gambling was legalized in Ukraine, yet public pressure on this sector remains strong.Casinos, betting companies, and online gaming platforms operate openly, report their activities, and pay taxes. Meanwhile, lotteries — one of the oldest segments of the market — continue to exist almost outside the law. Licensing conditions for them have still not been approved, which means no taxes are paid, no oversight is in place, and profits remain in the shadows.This is a paradox: the state has built a system but left a major gap within it. And this very gap is now costing the budget billions.


“A State Within a State”

Lotteries operate, advertise, and have players, yet they do not fall under the same regulations as other market participants. In effect, they have turned into a “state within a state” — with their own rules, their own cash flows, and no accountability to the budget.While betting companies undergo financial monitoring, meet complex requirements, and report to the regulator, lotteries remain outside the transparent framework. Such selective regulation not only appears unfair — it undermines trust in the very idea of reform.


Transparency Is Not a Privilege, but a Duty

In wartime, any “grey area” in finance is a luxury the country cannot afford. While some companies pay taxes honestly, others effectively ignore the system, taking advantage of the government’s inaction.This demotivates investors, disrupts market logic, and creates a sense of double standards.Ukraine cannot both seek investment and allow unregulated segments to exist. Lotteries must become part of a unified legal framework — with licensing, oversight, and accountability. Because honest business does not fear transparency. And if we are talking about reform, it is time to make it complete.

 

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