Why legal business is an ally of the state, not an opponent

The Ukrainian gambling market has existed in a state of uncertainty for far too long. And although licensed gambling operators have managed to adapt, it is impossible to unlock the industry’s true potential under such conditions. This uncertainty has, without exaggeration, taken on a systemic character. It has created a situation in which the legal segment is forced to compete with the illegal one for players, but under much more difficult conditions — since legal companies must comply with regulatory and tax requirements. At the same time, both the regulatory and tax environments remain only partially reformed and are not yet adapted to the needs of legal gambling. This significantly complicates the operations of legal companies, and therefore requires urgent resolution.

Today, the Ukrainian gambling sector stands at a crossroads. On the one hand, there is an obvious need to streamline a market that has developed chaotically for years. On the other hand, there is the risk of once again taking the path of bans, increased pressure, and unreasonable decisions that inevitably push the industry back into the shadows. Yet the main lesson of recent years is that the problem has never been the very existence of gambling. The problem lies in the absence of clear, modern, and balanced rules that should have been established after legalization in 2020. However, we still do not see a fully functioning regulatory environment.

The flawed model created a situation in which the “white,” “gray,” and outright “black” participants essentially operated in the same market environment—while having completely different starting positions. And unfortunately, the positions of illegal operators have been and remain strong due to the much lower financial burden on their “business.” As a result, the shadow segment remains excessively large, and the state budget continues to lose billions of hryvnias in revenue. However, the problem is not that the state does not control the market. The problem is that it is difficult to control due to the absence of transparent mechanisms, a proper tax model, and a clear procedure for interaction between the private sector, the regulator, fiscal authorities, and the banking sector.

This is why today, legal operators are waiting for systemic changes that will not only bring order to the industry but also allow honest companies to operate effectively and predictably. Creating additional barriers instead of streamlining and simplifying regulation only harms those who work within the legal framework. Illegal operators do not pay for licenses, do not comply with Ukrainian legislation, and remain outside of state control. Meanwhile, “tightening the screws” on the legal sector automatically strengthens the competitive advantages of shadow-market players.

Therefore, the market’s key demand is predictability. Businesses need clear laws, stable procedures, transparent licensing, understandable tax obligations, and adequate financial mechanisms. These are the conditions that make legal operation attractive — not the opposite. The market is not against reforms, but only if they are effective, reasonable, and do not push players toward illegal operators, but instead create a civilized ecosystem where the rules are the same for everyone.

Legal business is not the opponent of the state. It is a partner in building a clear, competitive, and transparent jurisdiction where shadow operators are displaced not by brute force, but by the sound logic of modern regulation. There should be no “wall of distrust” between the state and licensed operators. The industry has long been ready for a partnership model — precisely the model promoted by UGC: regular dialogue, data exchange, and joint efforts to find solutions aimed at strengthening the market and forming a stable, competitive industry. The state receives stable revenues, businesses receive predictable conditions, and society receives protection and transparency.