Public Gaming International May/June 2020

63 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2020 63 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2020 sphere for Lottery that is separate and di erent from the regulatory framework that is applied to other games-of-chance. e valuable role that Lotteries serve for society – channeling funds to support good causes - needs to be protected. Alternatively, there is the model that treats all games-of-chance the same, disregarding the societal role performed by lottery and thereby putting lottery at a severe disadvantage against gambling operators which employ more aggressive marketing strategies, higher prize-payouts, and less rigorous responsible gaming standards. e draft Gambling Law ended up provoking more questions rather than answers, and exposed a vast dispute in the industry and even in the larger society: At what stage should the state online monitoring system be launched, and how can gambling organizers work and pay taxes before the system is switched on? So, in an open and democratic way, discussions were conducted in the Parliament as well. Prior to the working group meetings an announcement was published, and any representatives of the interested parties could attend and express his or her point of view. With some amendments, the Gambling Law was adopted in the rst reading in mid Jan 2020. And before the second vote (which might happen even prior to publication of this article), 3500 amendments to the draft law were registered: di erent views and various interests representing the views of the di erent gaming categories. is is natural and was expected. e question becomes: which amendments will be incorporated while editing the draft text to become the law of the land? With the opportunity to choose among 100 opinions, everyone will be able to nd the opinions that align with their own views; but it will be very di cult to create consensus and end up with a coherent, consistent, enforceable regulatory framework. As a member of EL since 1993, we have learned so much about the gaming values that work in other European jurisdictions, and that enables us to identify the ones in our own draft law that are aligned with global best-practices, or not. We can analyse our draft law, compare it to the established laws of more mature jurisdictions, and see where the strengths and weaknesses and inconsistencies exist. And hopefully adjust accordingly! I.e. Gaming Commission. Traditionally, the Europe market regulation starts within the Ministry. It could be a ministry of Finance or Culture or even Home A airs. With the development of the market and the regulator’s expertise, a Gambling commission is formed, and it reports usually to the ministry which was the regulator previously. So, this is an evolutionary process with the transfer being announced at least one year in advance. Ukrainian draft law reads that the Commission starts from day 1 and reports to the Cabinet of Ministers. is is di erent from the typical Western experience and might be di cult to implement e ciently in that compressed time constraint. STATE ONLINE MONITORING SYSTEM. It is written in the Law that the state online monitoring system be implemented within one year after the law comes into e ect. is means that during the rst twelve months, gambling operators must work “unplugged”. en, they will have six months to be plugged in. Who will monitor them and how will they be monitored and controlled during this period? e more conventional method is to organize and implement the regulatory infrastructure before operators are licensed and authorized to start o ering the games-of-chance. It may be up to eighteen months before the gambling organizers work in connection to the state online monitoring system. REGULATION OF LOTTERIES. State lotteries in Ukraine are regulated by the Law on Lotteries. Gambling is not regulated. Is it helpful under such di erent starting positions to put both lotteries and gambling games under the same law? Based on experience of many countries it is more helpful to separate them at this stage and focus on a solid launch of new games into the regulated market categories like slots or betting. • With all its pros and cons, the draft law anyway provoked increased interest not only internally but among the international gaming community. Perhaps, Ukraine is the last European market to open the door for gambling. And Ukraine is one of the biggest countries in Europe. Everybody knows this macro data, so many big and middle size international suppliers as well as some operators expressed their potential interest to enter Ukraine under certain conditions. ose conditions include: Clear rules of the game. is means regulation should be clear, stable and transparent • Reasonable price for the licenses in combination with clear tax rates. Otherwise, no realistic business plan can be composed • Equal opportunities for the operators, fair and e ective enforcement of the Law, and strict control of the market by the state. • Guarantees for the protection of the investment. ese are 4 pillars which form the basis for attracting foreign investment into a new gaming market. Ukraine is not an exempt from these principles. I think it is important that internationally recognized companies take their stake in the Ukrainian gaming market. eir presence will raise the standard of operation which really will protect key goals declared by the law: a) raise money for the budget and b) protect players. On the other hand, if the market is occupied by the unlicensed operators that plagued the country with unregulated business over the last ten years, what standards will exist to protect the consumer and the interests of society? It is time for the government to serve the people with a regulatory and taxation regime that prevents illegality and preserves a stable and sustainable gambling market. So rather soon we will see which way Ukrainian gaming market will go. Are you betting? THE DRAFT GAMBLING LAW ENDED UP PROVOKING MORE QUESTIONS RATHER THAN ANSWERS, AND EXPOSED A VAST DISPUTE IN THE INDUSTRY AND EVEN IN THE LARGER SOCIETY