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Ukraine’s President Shakes Up Gambling: KRAIL Dissolved

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Volodymyr Zelenskyy

Imagine an entire nation’s gambling regulator vanishing overnight.

That is what President Volodymyr Zelenskyy achieved by signing Law No. 9256-d.

Picture a transformed sector under a new oversight body, armed with expanded powers to promote fair gaming.

Dive in to grasp how these reforms reshape Ukraine’s gambling market and impact every stakeholder involved.

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Ukraine’s Gamble: Zelenskyy Dismantles Regulator, Empowers New Oversight Authority

3 Key Points

  1. KRAIL ceases operations on 1 April, replaced by a central executive authority.
  2. The new authority wields broader powers for licensing, real-time monitoring, and player protection.
  3. Operators face stricter compliance, hefty fines, and a ban on gambling advertising.

President Volodymyr Zelenskyy has ratified Law No. 9256-d, dissolving Ukraine’s Commission for the Regulation of Gambling and Lotteries (KRAIL). This law takes effect on 1 April, signifying a major overhaul in the country’s gambling landscape. In KRAIL’s place, a new oversight body emerges. It will wield extensive powers to ensure transparency, responsible play, and greater accountability.

Dissolution of KRAIL

Under the freshly enacted framework, KRAIL will no longer control gambling licensing or operations. The law cites inefficiencies and internal controversies within the regulator as motives for its termination. Moreover, the final push came from a series of scandals that engulfed KRAIL’s leadership. Investigations exposed corruption and allegations of enabling unlawful activities. These controversies convinced lawmakers that dissolving KRAIL was essential.

High-Profile Corruption Cases

KRAIL’s downfall was foreshadowed by sensational arrests. In August 2021, the National Anti-Corruption Bureau of Ukraine (NABU) apprehended Yevhen Hetman, a commission member. Authorities accused him of demanding a $90,000 bribe in exchange for issuing gambling permits. Further intensifying the crisis, Ukrainian officials apprehended KRAIL head Ivan Rudyi in December. The State Bureau of Investigation (SBI) alleged Rudyi facilitated a licence for a Russian-owned online casino known to present national security risks. Investigators claimed that soldiers’ personal data was at risk of infiltration by Russian-linked entities. They also discovered significant quantities of cocaine during their searches.

New Oversight Body Emerges

With KRAIL disbanded, lawmakers have introduced a more robust authority. Per the text of Law No. 9256-d, a central executive body will take responsibility for regulation. Its mandate expands beyond previous scopes, granting it control over licensing, real-time monitoring, and player identification. It can also propose new gambling laws or amendments to existing ones. By setting out these roles, Ukraine signals a commitment to usher in a transparent, safe environment for bettors.

Strengthened Monitoring and Responsible Gaming

Under the new system, operators must adhere to more stringent rules. The law calls for real-time gambling data oversight. It also mandates introducing player identification protocols to prevent underage and unregulated access. Additionally, the new regulator has the authority to craft responsible gambling guidelines. These guidelines require maximum daily and weekly playtime limits and built-in cooling-off periods. They also cap spending amounts to discourage excessive betting. By embedding these responsibilities, Ukraine aims to curb problem gambling and protect vulnerable players.

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Ban on Gambling Ads and Heightened Penalties

A core highlight of the legislation is the outright ban on gambling advertising. Lawmakers believe pervasive marketing can exacerbate problem gambling. By prohibiting ads, the government seeks to reduce impulsive wagers. Operators that break these rules face stiff fines. Meanwhile, the authority may revoke licences if repeated violations occur. This underscores the new system’s emphasis on operator accountability.

Background on Ukraine’s Gambling Sector

Ukraine legalised gambling in 2020. However, incomplete regulation and conflicting interpretations hampered progress. The new law aims to streamline licensing and oversight, ensuring only reputable entities operate. The decision to dismantle KRAIL signals a fresh start. Policymakers anticipate the new executive body will raise standards, restore trust, and generate tax revenue without compromising player safety.

Volodymyr Zelenskyy signed Law No. 9256-d to bring order to a sector riddled with corruption. Moreover, Ukraine’s parliament, the Verkhovna Rada, approved the measure in April 2024, reflecting broad consensus. With the shift from KRAIL to a more empowered watchdog, industry watchers expect improved enforcement and transparency.

By dissolving KRAIL and creating a new oversight authority, President Zelenskyy decisively reshapes Ukraine’s gambling sector. Enhanced regulatory powers, a ban on gambling advertising, and more robust measures tackle ongoing corruption and consumer risks. Although these reforms demand significant operator adaptations, they promise a more reliable, transparent environment. As the central body begins its work, Ukraine positions itself to stabilise its gambling industry, elevating player protection while cutting out unethical practices.

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Jerome, a valuable addition to the Gamingo.News team, brings with him extensive journalistic experience in the iGaming sector. His interest in the industry was sparked during his college years when he participated in local poker tournaments, eventually leading to his exposure to the burgeoning world of online poker and casino rooms. Jerome now utilizes his accumulated knowledge to fuel his passion for journalism, providing the team with the latest online scoops.

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