The Ukrainian Gaming and Lottery Regulatory Authority (KRAIL) received a significant number of applications for gambling-related permits in the initial quarter of 2024.
KRAIL granted authorization to a substantial portion of these applications, including a large number for gaming machines and a few for providing gambling services.
Furthermore, a limited number of licenses were issued for gaming tables, encompassing one for an online casino and one for a roulette table.
A small number of applications were denied due to insufficient documentation, and KRAIL also decided to decline one license request.
Earlier this month, the Ukrainian President, Volodymyr Zelensky, declared his intention to examine a potential ban on online gambling for military personnel following a petition from a Ukrainian soldier.
The Ukrainian president disclosed this proposed restriction in his nightly address to the nation on April 2nd.
The government is currently preparing to enhance oversight of the country’s online gambling sector to safeguard social interests.
A plea from Ukrainian troops seeks to emphasize the detrimental effects of the gaming business on the Ukrainian military and society, such as causing soldiers to accumulate financial burdens.
The troops are advocating for a prohibition on gambling and access to online gaming platforms for military personnel through wartime regulations.
Ukraine’s KRAIL is taking action against illicit gambling operations.
Ukraine has been striving to combat clandestine gambling operators in recent years. In August 2023, KRAIL declared that nearly three-quarters of unlicensed operators were barred from accessing their websites in Ukraine after the organization contacted them.
According to KRAIL, 72.3% of websites ceased operations in Ukraine following the regulator’s intervention. This encompasses the period from January 25, 2022, to August 8, 2023.
In February of this year, Ukraine’s State Bureau of Economic Security confiscated 700 million Ukrainian hryvnias ($14.8 million/€17.3 million/$18.6 million) from an unidentified large gambling operator due to tax avoidance.
However, despite KRAIL’s efforts in Ukraine, its future remains unclear. In May 2023, Deputy Prime Minister Mykhailo Fedorov submitted a draft law proposing the disbandment of KRAIL and its replacement by a new executive entity.
Fedorov highlighted the challenges the regulator has encountered in issuing gambling licenses in a timely manner.
KRAIL is a collective body with a chairman and six members. Its meetings, including those concerning license applications, are only valid if five members are present.
The Russian armed forces’ incursion into the nation compelled certain KRAIL members to enlist. This made it difficult to continue holding KRAIL gatherings and resulted in postponements of crucial tasks, such as authorizing permits.
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