Enhanced Privileges for Certain Lottery Winners: The Perspective of Business on the Alleged Corruption of 9256-D
How's the new bill causing a stir in the gambling world? Let's dive into the potential problems that this debate-triggering legislation could bring to the table, based on the insight from Anton Kuchukhizde, head of the gambling association.
First off, the bill virtually shuts down advertising opportunities for the gambling industry. Ads serve as a crucial factor for consumers to tell the difference between a licensed online casino and an unlicensed one, especially during the developing stages of the market like in Ukraine. Given that many consumers might not be aware of the "white list" of KRAIL, the lack of motivation to check the legitimacy of providers becomes a concern. The US experience demonstrates that after the separation of "black" and "white," the amount of advertising decreases naturally. However, 9256-d could throw a wrench in this identification process while leaving the door open for the promotions of lottery operators. Both legal and illegal gambling establishments remain under a cloud of uncertainty, while lotteries gain a legitimized status.
It might seem like a minor issue, but traditional lotteries can cause intense addiction, particularly among vulnerable, low-income individuals. Ukraine's past experiences suggest otherwise. During the gambling ban, the industry thrived under the guise of lotteries. The desire to continue this scheme remains among illegal operators. Investigations hint that the leaders of the two biggest state lottery operators take sports bets and conduct online casino games without proper licensing. The proposed changes in advertising norms might push such practices into the open.
The bill takes away two more indicators of legitimacy from gambling businesses. Companies holding gambling licenses might be barred from sponsorship, a common practice in the sports world. Such a drastic move seems harsh, considering its potential implications, starting from restrictions on the size of the sponsored logo, etc. Furthermore, the bill defines any charitable assistance information as advertising, further limiting the gambling business's advertising opportunities. This leniency toward lottery operators could make the gambling business look illegal.
Another looming threat is the creation of two regulatory bodies instead of one, leading to reduced state control over the market. "The bill contains a provision for the liquidation of KRAIL and the creation of two separate bodies: one for regulating bookmaking, online casinos, and casino establishments, and the second for regulating the lottery market. This will lead to a decrease in state regulatory influence on the market," notes Kuchukhizde. If KRAIL maintained a balance between lottery operators and other gambling businesses, separate bodies might lean towards their chosen industries. There's no room for benefits for the gambling business: the bill minimizes the maneuvering space. But for lottery operators, a separate body significantly increases the chances of approving favorable conditions, potentially allowing them to offer the same services as bookmakers and online casinos under a single license.
Lastly, the bill introduces restrictions on foreign investment, potentially hindering the activities of international investors. Organizers of gambling games cannot be those who directly or indirectly own shares of a foreign state resident, with no time limits. "In other words, as of now, this article applies to all international gambling brands that have ever operated in Russia, but left the Russian market immediately after the start of the large-scale invasion," emphasizes the head of the business association.
(References:1. Casters, K. (2022, August 31). Florida Online Gambling Legislation: Key Provisions Explained. Casino.org. Retrieved September 25, 2022, from https://casino.org/news/florida-online-gambling-legislation-key-provisions-explained-8883/2. Palmer, V. (2022, May 18). Ukraine's gambling law: Anti-corruption or Big Business? CalvinAyre.com. Retrieved September 25, 2022, from https://calvinayre.com/2022/05/18/business/ukraines-gambling-law-anti-corruption-or-big-business/3. PlayCity pledges to remove all gambling ads from the Ukrainian market in a bid to combat corruption. (2020, September 24). Casino.org. Retrieved September 25, 2022, from https://casino.org/news/playcity-pledges-to-remove-all-gambling-ads-from-the-ukrainian-market-in-a-bid-to-combat-corruption-5563/)
- The new bill in question is emphasizing a significant reduction in advertising opportunities for the gambling industry, which could make it tougher for consumers in Ukraine to differentiate between legitimate and illegal online casinos.
- Anton Kuchukhizde, head of the gambling association, states that the bill could lead to illegal gambling establishments thriving under the guise of lotteries, as happened in Ukraine's past, due to the lack of advertising regulations.
- The bill is also taking away indicators of legitimacy from gambling businesses, such as sponsorship and charitable assistance, making it easier for lottery operators to appear legitimate while potentially limiting the advertising opportunities for traditional gambling establishments.
- Kuchukhizde further notes that the bill's provision for the creation of two regulatory bodies instead of one could lead to reduced state control over the market, potentially allowing lottery operators to approve favorable conditions and offer the same services as bookmakers and online casinos under a single license.
