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Ukraine’s gambling regulator has issued two fines for gambling advertising totaling UAH4.8m (€109,900), weeks after imposing a ban on gambling advertising.
The Ukrainian Gambling and Lottery Regulator Commission (KRAIL) decided on the fines at a meeting held on June 4, after investigating alleged violations of the advertising rules.
Kyiv-based advertising agency Ignis Group was found to have distributed advertising gambling on an outdoor video screen on the facade of a building.
Alongside the UAH2.4m fine, KRAIL also ordered the company to “stop the distribution of advertising” within 30 days, pay the fine no later than three months after the decision and notify it of its implementation or appeal.
The other UAH2.4m fine was for Media Market for also advertising a gambling product outside.
On May 20, 2024, a resolution on "Some issues of countering the negative consequences of gambling on the internet", was passed by the Cabinet of Ministers.
The resolution includes “restricting all forms of gambling advertising, in particular with the use of electronic communications” and came into effect on May 21.
It supplements the Decree "Regarding counteracting the negative consequences of gambling on the Internet", which was approved by the National Security and Defense Council of Ukraine, under the Ukrainian President's office, on April 20, 2024.
The advertising ban will remain in effect until a new law on combating gambling addiction, which is currently under consideration in the Verkhovna Rada, is passed.
Trade group the Ukrainian Gambling Council (UGC) warned in a blog post on June 3 that banning licensed operators from advertising will just see more illegal operators investing in “dubious” marketing channels such as Telegram.
UGC's Anton Kuchukhidze wrote: “According to the most conservative estimates the media market will lose at least UAH600-700m by the end of the year. Television broadcasters will lose up to UAH400m, radio broadcasters will lose about UAH100-150m, and outdoor advertising will lose almost UAH50m. The ban will also affect legal online media, which are expected to lose at least UAH100m.”
