Anton Kuchukhidze and Post-war Ukraine Have a Vision for Ethical Gambling Regulation

_{Chairman of Ukraine’s Gambling Council shares insights on rebuilding Ukraine’s gambling industry post-war. (Image: Alan Evans)}

Anton Kuchukhidze is the Chairman of the Ukrainian Gambling Council, with a fascinating background. He began the interview by telling us a little about how he became involved in the gambling industry. 

“I graduated from the Taras Shevchenko National University of Kyiv with a degree in international relations, focusing on political analysis and international relations expertise. 

"My interest in gambling started back in 2011 when I connected with potential investors from the Baltic states. They were looking to invest in Ukraine’s gambling sector, which at that time was closed and banned. 

"Since then, I've been following the developments in this area closely.” 

Anton was instrumental in the legalisation of gambling in Ukraine. We asked him what some of the key challenges he faced during this process were. 

“Legalising gambling in Ukraine was fraught with challenges, especially the presence of a significant black market. Over the years, there was a persistent effort to legalise the industry, but it faced numerous hurdles, including corruption and public resistance. 

"Our campaign highlighted the advantages of legalisation, and by 2019, the need for strategic media support was clear.” 

What steps did you take to mitigate the risks associated with gambling harms when gambling became legalised in Ukraine?

Anton is extremely knowledgeable in this area, and he told Casinos.com: “The government and parliament did commendable work in legalising gambling. It was a huge step forward, generating revenue for the budget and contributing to social causes, including support for the Ukrainian army and internally displaced persons. However, there’s an ongoing struggle against the black market, which remains a significant challenge.”  

We were curious over Anton’s remarks that the opposition to gambling ads in Ukraine was a political move. We asked him to elaborate on that.  

Anton had no hesitation in responding, saying, "The proposed ban on gambling advertising is a complex issue. While some believe it may mitigate gambling addiction, it inadvertently empowers the black market. For instance, when advertising is restricted, legitimate companies face challenges in branding and visibility, prompting potential investors to rethink their commitment to Ukraine. 

"The reality is that while gambling ads face scrutiny, lottery advertising does not, which highlights a lobbying issue aimed at protecting certain interests.” 

We stressed that there is alarm when people hear about the tactics employed by the Russian gambling sector to capitalise on the war with Ukraine. We asked Anton if there were any steps being taken to address this. 

Anton painted a bleak picture for Casinos.com and said: “The situation is dire, as many Russians operate through offshoring tactics in jurisdictions like Cyprus.

"Despite strong EU regulations against money laundering and financial terrorism, there seems to be a loophole allowing these companies to operate and sponsor events in Europe. I believe that European governments must strengthen their oversight to effectively counteract these schemes.” 

Ukraine's gambling industry has undergone significant changes since legalisation in 2020. Anton outlines the ongoing struggle against a substantial illegal market, which features thousands of unlicensed operations that undermine legitimate companies. 

While 17 licensed websites exist legally, many consumers remain unaware of illegal platforms, often falling victim to exploitation by firms that navigate regulatory loopholes.

Given the ongoing conflict and its impact on the gambling industry, we asked Anton what he envisioned for the future of gambling in Ukraine post-war.  

Ever optimistic and speaking with some emotion, Anton said, "Our greatest hope is that once the war concludes, we can foster an environment where the brightest minds and best practices, especially from the Ukrainian diaspora, can return to help build a sustainable gambling industry. 

"This includes creating a fair and transparent regulatory framework that could make Ukraine a leader in the regional gambling landscape.” 

Anton advocates for a cooperative relationship between the government and the legal industry, emphasising the need for effective communication to combat the black market. 

He warns that proposed bans on gambling advertisements could drive consumers back to illegal platforms, ultimately harming government revenue and industry growth.   

Given Ukraine might be looking to rebuild a model for the gambling industry and regulators, we asked Anton if he thought the model from the UK could serve as an example for Ukraine. 

"Yes, the UK has a robust regulatory framework that we can learn from, but Ukraine needs to adapt those lessons to fit our unique context. For example, a better tax structure could attract international investors and promote a healthier market.”  

We could not ignore the fact that there are Ukrainians now working for companies outside of Ukraine, many of whom are in great jobs and important roles. We asked Anton about this mass exodus of talent from Ukraine and how he saw it in the current instability. 

"It's a real concern. Ukraine has many skilled professionals, particularly in IT and gaming technology, who have sought opportunities abroad during the war. However, many still hold on to the dream of returning to contribute to rebuilding Ukraine’s economy and gambling industry.” 

Looking at the future, Anton envisions Ukraine becoming a leader in responsible gambling in Eastern Europe, especially as the ongoing conflict in Russia prompts businesses to seek new territories. 

He suggests adopting a regulatory framework similar to that of the UK but tailored to Ukrainian realities, encouraging investor interest and responsible practices.

To find out if Anton’s vision for Ukraine is possible, we spoke to a leading academic in the field of gambling research. 

An Academic Perspective on the Future of Gambling in Ukraine

The conversation around gambling advertising also highlights the risks of permissive advertising practices as seen in the UK. Dr. Torrance warns that Ukraine should implement tighter advertising restrictions to mitigate potential gambling harm, especially among vulnerable populations such as military personnel and veterans.  

His recommendations for Ukraine’s future include adopting a state-owned model with stringent regulations and ethical business practices to safeguard consumers. 

He emphasises the growing consumer demand for ethical conduct among gambling operators, urging regulatory bodies to address these expectations proactively.  

Balance to be Struck Between Consumer Protection and Consumer Personal Freedom 

Collaborative efforts among stakeholders and a commitment to consumer protection will be pivotal in shaping the future of gambling in Europe. As countries like Ukraine navigate the complexities of balancing growth with harm reduction, insights from researchers and industry leaders alike will be essential. 

The growing emphasis on ethical business practices and ESG (Environmental, Social, and Governance) principles reflects a broader trend towards responsible gambling, which must be prioritised in regulatory frameworks. 

Engaging in meaningful discussions about the balance between personal freedom and consumer protection will help create a fair and effective environment, particularly in rapidly evolving markets such as Ukraine.