Ukraine to establish new gambling regulatory body amid controversies

Sudhanshu Ranjan January 7, 2025

SiGMA news

Ukraine to establish new gambling regulatory body amid controversies

Ukraine is planning to create a new agency to regulate gambling activities following the dissolution of the Commission for the Regulation of Gambling and Lotteries (CRGL). This move comes in response to a series of controversies and aims to ensure greater accountability and control over the sector.

CRGL’s controversy and downfall

The CRGL, known as KRAIL, was established following the legalisation of gambling in Ukraine in 2020. Its primary role was to regulate gambling activities and issue licences to operators. KRAIL’s operations were marred by allegations of corruption, including bribery and improper conduct. These issues eventually led to the decision to dissolve the organisation.

The National Anti-Corruption Bureau of Ukraine (NABU) detained KRAIL officer Yehven Hetman for accepting a bribe of over $90,000 in exchange for issuing gambling licences without proper procedures. Further controversy arose when KRAIL’s head, Ivan Rudyi, was detained for allegedly supporting a Russian-owned online casino. This raised national security concerns, especially regarding the potential access to sensitive information of Ukrainian military personnel.

The State Bureau of Investigation (SBI) revealed that under Rudyi’s controversial leadership, KRAIL not only issued but also deliberately chose not to revoke a licence for a commercial entity owned by Russian nationals. The authorities also expressed grave concern that Russian entities may have been granted access to personal information regarding Ukrainian military personnel who were patrons of the casino. According to reports, investigators unearthed a substantial amount of cocaine that Rudyi allegedly possessed.

In response, President Volodymyr Zelenskyy issued a decree prohibiting military personnel from logging on to gambling websites due to concerns about gambling addiction and security breaches.

New gambling regulatory body

Ukraine expects to regulate the sector and ensure a fair, transparent gambling environment with strict oversight by setting up a new regulatory body by April. Accompanying the new body will be the establishment of a ministry dedicated to implementing gambling and lottery policies, ensuring coherent and seamless administration.

Access to illegal gambling websites and mobile applications will be limited in the near future, with digital enforcement actively working to contain illegal gambling activities. The new Law No. 9256-d imposes stricter punishments on offenders, indicating consequences when gambling establishments fail to comply with regulations and licensing requirements.

The regulatory framework involves promoting conscientious, responsible gaming, and fair advertising, with heavy punishments for violators. These changes are likely to create a more transparent and accountable gambling industry in Ukraine, aimed at consumer protection and fair play.