Is Legalizing Gambling in Ukraine Key to Economic Survival and Security?

The debate over legalising gambling in Ukraine intertwines economic stability with national security. (Image: Mykhailo Palinchak / Alamy)

A Ukrainian prosecutor, Artem Boyarenko, is currently under scrutiny for alleged connections to the Favbet, a Ukrainian-based online casino and betting company, and potential conflicts of interest. 

A certificate from Favbet found in Boyarenko's office has sparked controversy, with accusations of impropriety emerging. He argues that acknowledging such certificates does not equate to legal violations and that there are no explicit regulations preventing the acceptance of non-material tokens of appreciation.

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Boyarenko responded to the allegations in the publication Eureporter highlighting that the ongoing discussions surrounding the gambling business in Ukraine are complicated by the broader context of the country's war with Russia. He expresses concern over the perception of the gambling industry, noting that it is a significant contributor to the state budget and, by extension, to national defence. 

According to official sources, since the beginning of the full-scale war, the West has provided Ukraine with more than USD 165 billion in aid, most of which has been directed to military purposes. Boyarenko asks if this is enough for the country to survive in the conditions of continuous conflict.   

The prosecutor notes that due to intense scrutiny and pressure from various campaigns, there are proposed legislative changes aimed at restricting any positive commentary about gambling companies, which could be interpreted as advertising. This has created an environment where open dialogue about the industry is increasingly challenging.  

Boyarenko emphasises the necessity of discussing the economic implications of the gambling industry, especially given Ukraine’s current circumstances. 

Boyarenko points out that, despite the substantial aid provided by Western nations—amounting to over USD 165 billion since the onset of the war—this support may not suffice for Ukraine's long-term survival. 

He underscores that a crucial part of the national economy benefits significantly from gambling revenues, which are expected to reach UAH 20 billion annually. 

Boyarenko argues that it is counterproductive to push legal gambling operators into the underground economy, especially when illegal operators—often linked to Russian interests—pose a greater threat to the country's stability. He cites statistics indicating that the legal gambling sector has already made considerable contributions to the state budget and that companies like Favbet play a prominent role in supporting military efforts and charity throughout the ongoing conflict. 

In his conclusion, Boyarenko asserts that the legalisation of gambling is not only an economic issue but also ties directly to national security. He advocates for balanced and mature discussion regarding the future of the gambling industry in Ukraine and the need to prioritize economic stability amidst the challenges faced by the nation.