Zelenskyy Dissolves Ukrainian Gambling Regulator in Gaming Sector Overhaul

Ukrainian President Volodymyr Zelenskyy has signed a bill that will establish a new regulatory body to oversee the gaming industry in the war-torn country, in the process eliminating a former regulator that was plagued by corruption allegations. 

Ukraine first legalized gaming in 2020, putting it under the oversight of the Commission for the Regulation of Gambling and Lotteries (KRAIL).

Scandals Diminish Trust in KRAIL

But in just four years, multiple high-profile scandals hit KRAIL and some of its officials. 

In 2021, KRAIL official Yevhen Hetman was arrested by Ukrainian anti-corruption officials for allegedly accepted a $90,000 bribe in exchange for approving gambling permits. Just last month, Ivan Rudyi, the head of KRAIL, was detained after allegations that his ties to a Russian online casino may have jeopardized national security by allowing access to the personal data of Ukrainian military personnel to Russian individuals.

Under the new legislation, known as Law No. 9256-d, a new regulatory body will replace KRAIL, which will be dissolved by April 1, 2025. According to officials, the new regime will be tasked with digitizing gaming licenses and implementing online monitoring systems designed to make the country’s gaming regulations more efficient and transparent.

“The essence of the law is to reorganize the KRAIL and remove the human factor from the license issuance process,” Ukrainian Deputy Prime Minister Mykhailo Fedorov told reporters.

New Regulations Address Soldier’s Gambling Petition

While the bill marks a dramatic reorganization of Ukraine’s gaming oversight, it also comes with some practical changes for how the industry will operate inside the country.

The new bill cracks down significantly on gambling advertisements inside Ukraine. The only advertisements now allowed include those on late-night television and radio broadcasts that clearly target audiences ages 21 and over. Companies cannot offer promotions that include free bonuses, and they may not contact individuals via unsolicited calls or messaging. 

Sponsorships have also been limited. Public figures, including military personnel, are now banned from sponsoring gambling companies. 

The new laws also tighten control over what companies are able to hold gaming licenses. While some foreign entities can still apply for lottery licenses, companies that have links to hostile nations are completely banned from the gaming industry, with their brand usage also being restricted. Any company with tax or licensing issues will also be unable to acquire a gaming license.

While gambling policy may seem like a low-priority issue for a country fighting a war, the conflict with Russia played a role in getting the new bill passed. 

In March 2024, a Ukrainian soldier named Pavlo Petrychenko gathered over 26,000 signatures in one day for a petition asking President Zelenskyy to address the harm caused by gambling addiction. That led the Ukrainian government to take a multi-departmental overview of the gaming industry in order to determine how best to manage the industry.

The new reforms may also improve the legitimacy of the Ukrainian gaming industry in the eyes of the international community. In October, the Ukrainian Gambling Council asked Google to reconsider its current policies, which block all gambling ads from licensed Ukrainian operators.

(Image: Geert Vanden Wijngaert / AP)