Gambling Council Head: Security Agencies Vital for Ukraine

_{Chairman of the Ukrainian Gambling Council discusses the impact of recent regulatory changes in gambling industry. (Image: Anton Kuchukhidze)}

President Zelenskyy has decided to disband the Ukrainian Gambling Regulator amid allegations of corruption. The move aims to digitalize the licensing process to minimize human involvement and potential corruption. It will impact the land-based and online casino industry and so we asked the Chairman of the Ukrainian Gambling Council, Anton Kuchukhidze,  for his thoughts on this transition.

We asked Anton if he saw any positives in this most recent change to the regulatory body for gambling in Ukraine, “In relation to the amendments, the concept is that, under the new regulations, we will transition to an authorized body to regulate gambling. However, the specifics are still being defined. 

“The government will be the primary actor in this regulatory space. One scenario in discussions has been the potential transformation of the current regulatory body into a dedicated agency for gambling and lotteries. However, we need time to see how these plans materialize, especially since the new regulations will come into effect on April 1st.

"Currently, the state regulatory body remains operational and is actively processing license applications. Despite recent news, the body is functional, and anyone wishing to submit license documents can do so.” adds Anton.

There has been significant public outcry, notably as reported by Casinos.com from a petition that gathered 26,000 signatures in one day, which some believe accelerated this reform. 

Casinos.com asked Anton if he thought that this had a real impact on the government's actions.

“Yes, I believe the petition played a role in influencing political groups. There was another part of a broader media campaign to spotlight the issue of legal gambling. However, if we look deeper, there are certain lobby groups with interests in discrediting the legal market, including lottery lobbies and illegal operators. 

"They propagate that gambling leads to social issues like addiction. Historically, the lottery sector in Ukraine has operated without paying license fees since 2014, despite being semilegal. 
  
“It's important to understand that while there is concern over gambling addiction, the consequences are often overstated by those with vested interests in maintaining the status quo—particularly in the lottery sector, which can be monopolistic.”

In a previous interview with Casinos.com, Anton mentioned that gambling operators prefer not to have problematic players, as their goal is to provide entertainment without causing issues. We asked him if he could discuss the state of land-based casinos and the lottery market in Ukraine.

Anton says, “The land-based casino market in Ukraine is not particularly massive compared to other forms of gambling like online casinos. Regarding the lottery, the monopolistic structure that existed between 2009 and 2020 was detrimental to fostering a competitive market.

“The rhetoric surrounding gambling addiction has been used strategically against legal gambling, often to maintain control over the lottery sector, despite the fact that many lottery operators are also engaged in illegal practices.” 
  
We asked Anton if gambling harms and targeting ads at vulnerable populations are ongoing concerns in Ukraine. We covered a lot of this in a recent interview with him in 2024. We asked if he believed stricter regulations on gambling advertisements would be effective, especially in the context of young soldiers deployed in the army. 
  
Anton acknowledged that this was a very complex issue. “I am against outright banning advertisements because when bans are imposed, illegal gambling often thrives. Advertisements can be effectively regulated without a complete ban; effective targeting is essential. Moreover, while media reports may highlight gambling issues among military personnel, my conversations with soldiers suggest that significant gambling problems are not widespread.“ 

The pattern of illegal gambling advertisement shared among soldiers through social media is concerning, but the prevalence is still low.

“We need comprehensive data to assess the situation accurately.”

In terms of Ukraine’s new law, which focuses on digitalizing the licensing process, casinos.com asked Anton if he thought this would resolve the existing challenges and what key points should be prioritized moving forward.

Anton believes that the answer to that question will unfold over a longer period of time. He said, “Time will reveal the effectiveness of these amendments. However, I believe that security services play a crucial role in monitoring and investigating companies, especially in relation to potential links with aggressor states like Russia.  

“The new regulator will focus mainly on licensing and not be mandated to conduct deeper investigations. Therefore, the collaboration between the new regulatory body and security agencies will be vital.” 
  
Anton had concerns over the involvement of Russian companies in Ukraine. Looking ahead, we asked him if he envisioned a future where Ukraine maintains a distinct gambling market that excludes Russian interests.  
  
Anton was forthright with his answer. “Absolutely. Given the ongoing conflict and the historical context, I don't foresee any cooperative economic relationships with Russia post-war. Ukraine will develop its gambling market to appeal to European and international investors, providing a framework that prioritizes security and integrity, setting it apart from the Russian model.” 
  
It's encouraging to hear about the future potential for a robust regulatory framework in Ukraine. We truly appreciate Anton’s insights and we look forward to following the developments in Ukraine. Anton is keen to see a robust, transparent and fair regulatory framework that offers operators and customers a home-based platform free from Russian influences.  

Google can play a significant role in supporting Ukraine's gambling framework and ensuring that it remains free from Russian involvement through several strategic actions. Google can enhance its algorithms and monitoring systems to identify and filter out gambling websites that are linked to illegal operations, particularly those associated with Russian entities. 

This could involve collaborating with local authorities to understand the specific characteristics of these websites. 

By working directly with Ukrainian regulatory bodies and law enforcement, Google can gain insights into the specific websites that are deemed illegal or harmful. This collaboration would allow for timely action against such websites. 

Google could establish a platform for users and local organizations to report illegal gambling activities. Providing easy access to reporting tools encourages community involvement and speeds up the identification of problematic sites. 

Google could invest in educational campaigns aimed at informing the public about the risks associated with illegal online gambling, as well as how to identify legitimate platforms. This could reduce the traffic to illegal sites and help users make informed choices.

By taking these and other actions, Google could significantly contribute to safeguarding Ukraine’s gambling framework and mitigating the influence of illegal operators, especially in light of ongoing geopolitical tensions.