Ukraine implements strict measures to combat online gambling risks, bans military personnel access

President Volodymyr Zelensky of Ukraine has signed a decree to ban gambling in the country's military in response to concerns that it is sapping morale and that it might pose a security risk in the country's ongoing fight against Russia. The ban runs until the end of martial law.

The decision to implement stricter regulations on online gambling comes in response to growing concerns about its social consequences, which have become a topic of public debate. Notably, a recent petition advocating for restrictions on online gambling gained support to prompt presidential consideration.

The petition was filed by Ukrainian serviceman Pavlo Petrychenko. Petrychenko's petition highlighted that some soldiers stationed on the front lines were not only engaging in online gambling but also resorting to measures such as taking out loans and even pawning military equipment to cover their gambling debts. 

Petrychenko's petition, issued in late March, swiftly gained traction, garnering the required 25,000 signatures for consideration.

President Zelensky's decree aligns with the National Security and Defense Council's recommendations. Among the measures outlined in the decree is a directive for the government to define restrictions on all forms of gambling advertising, particularly those using symbols associated with Ukraine's Armed Forces and military units.

Additionally, the decree mandates the implementation of a comprehensive information campaign to raise awareness about the dangers of gambling, alongside the introduction of an online monitoring system to track and regulate gambling activities. Furthermore, steps will be taken to block illegal gambling websites, bolstering efforts to combat unauthorized gambling operations within the country.

Under the provisions of the decree, Ukraine's Security Service will undertake an evaluation of gambling organizers to ensure compliance with existing legislation within a two-month timeframe. Concurrently, military personnel will be prohibited from accessing gambling facilities and online casinos, with the Commander-in-Chief and military unit leaders tasked with enforcing these restrictions.

The recent move to address online gambling follows broader legislative developments in Ukraine's gambling industry. Earlier in April, the Parliamentary Finance Committee threw its support behind a bill proposing the dissolution of the Commission for Regulation of Gambling and Lotteries, with its responsibilities slated to be transferred to the Digital Transformation Ministry.

It is worth noting that gambling in Ukraine experienced a significant shift in its legal status, transitioning from an official ban in 2009 to legalization in 2020. Despite its relatively recent legalization, the gambling industry has already emerged as a notable contributor to the country's tax revenue. 

According to Danylo Hetmantsev, chairman of the parliamentary Finance Committee, the gambling business in Ukraine paid Hr 2.2 billion ($56 million) in taxes in the first two months of 2024, following a total contribution of Hr 10.4 billion ($267 million) in 2023.