The Ukraine government has suggested dissolving the gambling regulator

A draft law proposing the dissolution of the Commission for the Regulation of Gambling and Lotteries (KRAIL) in Ukraine and the establishment of a new executive body has been presented to the Verkhovna Rada by the Ukrainian Deputy Prime Minister, Mykhailo Fedorov.

Mykhailo Fedorov, who serves as both Ukraine’s Deputy Prime Minister and Minister for Digital Transformation, proposed the draft law citing the gambling regulator’s consistent delay in issuing licenses.

The KRAIL is a collegial body comprising a chairman and six members, and the presence of at least five members is required to validate committee meetings. This quorum is necessary for the approval of applications for games of chance licenses.

Following the Russian invasion, President Zelenskyy declared martial law

Following the invasion of Ukraine by the Russian Federation’s armed forces on February 24, 2022, President Volodymyr Zelenskyy signed a decree introducing martial law in the country. As a result, some members of the Commission for the Regulation of Gambling and Lotteries (KRAIL) were mobilized into military service, making it impossible to hold KRAIL meetings and leading to significant delays in the regulator’s usual operations, including license issuance.

The Ministry stated that the disruption of KRAIL’s work caused complete market instability and revenue losses to the budget. It further emphasized that the current format of KRAIL was flawed and in need of reform.

The Ukrainian government has suggested changes to the country’s gambling laws

The proposed draft law aims to revamp the formation and operation of KRAIL by converting the existing committee into a more centralised executive structure. The intention is to have a single person in charge of regulating Ukraine’s gambling industry to enhance governance. The new executive body would be responsible for developing and implementing state policy for organising and conducting gambling and lotteries, necessitating the introduction of new primary legislation. The licensing process for gambling would be mainly automated under the proposed new system, resulting in savings to the budget and faster issuance of licenses. The Ministry also intends to combat corruption, which is considered to be endemic in the licensing process, as one of the objectives of the proposed law.

The head of KRAIL has criticized the proposed law

The chairman of KRAIL, Ivan Rudy, has criticized the proposed draft law, saying that the regulator was not consulted before the Ministry submitted the legislation to the Rada.

In media statements, Rudy expressed confusion and questioned the efficiency of the new law. He pointed out that the proposed changes were already part of the current legislation, and he did not understand what was changing. While acknowledging that the lack of Commission members was a problem, Rudy shifted the blame to the central government, stating that KRAIL had already requested an additional member from the Cabinet.

Additionally, Rudy questioned the need for an automated process, noting that KRAIL had only issued 36 licenses in three years, making the automation product unnecessary.