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Ukraine’s gambling regulator, KRAIL, has praised major technology firms for collaborating with it to tackle illegal gambling, but the local trade group has warned that licensed companies are unable to advertise their marketing campaigns online as a result.
Apple blocked 79 gambling apps on its platform and Meta blocked access to 108 pages of bloggers and influencers on Instagram for distributing gambling ads, according to recent KRAIL updates.
The updates follow the introduction of Decree 234/2024, which required the Ministry of Digital Transformation of Ukraine to conduct discussions with Meta, Apple and Google within a month of its entry into force, regarding banning gambling apps without a local licence on their Ukrainian digital marketplaces.
On July 16, KRAIL also expressed its gratitude to Meta for “assistance in preventing the negative consequences of placing illegal gambling advertisements on the resources of its social networks Facebook and Instagram”.
On July 17, 2024, KRAIL issued a reminder about the illegality of posting gambling ads on social networks.
However, trade group the Ukrainian Gambling Council (UGC) has publicly called on Google to “stop blocking all advertising of Ukrainian licensed gambling organisers”.
In a statement published on October 14, the UGC requested that Google in Ukraine lift existing restrictions and provide an opportunity to advertise licensed gambling using its services, as well as allow for licensed gambling apps to be able to advertise and be available on Google services.
“Google considers Ukraine as a country where all types of gambling, except lotteries, are currently prohibited, and it blocks advertising mainly from legal companies,” the UGC said.
The trade group also complained of a double standard when it comes to lotteries.
“All lottery operators, without exception, operate in Ukraine on the basis of licences that expired back in 2014. In fact, lotteries imitate gambling — betting, online casinos, slot machines — without having the appropriate licenses. They also do not pay any taxes and licence fees to the budget. However, lottery operators are not subject to any restrictions on gambling advertising,” the UGC said.
The trade group claims the current situation has prevented licensed companies from promoting their sports sponsorships and other marketing campaigns online, affecting their revenue and in turn reducing the amount of taxes collected by the state.
On May 20, 2024, the Cabinet of Ministers passed a resolution on "Some issues of countering the negative consequences of gambling on the Internet", which includes a host of provisions such as introducing mandatory breaks for players and blocking access to illegal websites.
Additionally, the resolution includes limits on “all forms of gambling advertising, in particular with the use of electronic communications”, which has been in force since May 21.
In recent months, KRAIL has issued several fines for illegal gambling advertising and is showing no signs of easing up its enforcement action.
