POLITICAL MYTHS USED TO DELEGITIMISE GAMBLING IN UKRAINE

Abstract

The process of gambling market legalization in Ukraine following more than eleven years of statutory ban on the organization of all types of gambling, except for lotteries, encounters opposition from both the shadow economy and politicians and officials, who, in addition to objective reasons for their interest in this political issue, may be involved in the rent-seeking behaviour due to the existing status quo. Now that the Law of Ukraine “On State Regulation of Activities in the Organization and Conduct of Gambling” adopted in July and effective from 13 August 2020 has defined the general framework of the regulatory model equating all gambling types and obliging operators to obtain relevant licenses, the leverage over the market ended up in the hands of the National Regulator (CRGL). Therefore, the state budget began to receive revenue from the gambling market, avoiding corruption flows. That is one of the reasons the emerging gambling market faced quite serious resistance at a number of levels, from the Parliament to local governments which, lacking access to hard cash, collect reputational bonuses from the exploitation of populist slogans to ban the organization and conduct of gambling in their jurisdictions despite the specialized Law. In order to deflate such opposition, joint efforts of both the legislative (at the level of the Verkhovna Rada of Ukraine) and executive power (represented by law enforcement agencies and the Cabinet of Ministers of Ukraine), as well as industry associations uniting legal operators are needed. In turn, public policy on gambling requires significant adaptation and reform in order to come as close as possible to the country’s present-day realities, as well as increase the level of compliance with international practice. For better understanding and planning of adaptation and reform, the examination of both the market and the changes taking place therein, including sociological studies enabling more adequate public and regional policies on gambling, is required.