Current policy favors illegal operators

Ukrainian Gambling Council urges Google to lift ad ban on licensed operators

2024-10-18
Reading time 1:36 min

The Ukrainian Gambling Council (UGC) has called on Google to change its current advertising policy, which blocks licensed gambling operators in Ukraine from promoting their services. The council argues that the blanket ban disproportionately affects legal businesses while allowing illegal operators to thrive, ultimately harming both the industry and the state.

The UGC’s request comes in response to Google treating Ukraine as a jurisdiction where all forms of gambling, except lotteries, are prohibited. As a result, the search engine has restricted advertisements for all licensed operators, including land-based casinos, sports betting, and online gaming platforms.

These licensed operators, who have fulfilled all legal requirements and contribute to Ukraine’s economy through taxes and license fees, are being sidelined by the tech giant’s policies, the UGC argues.

Illegal operators, on the other hand, have found ways to circumvent the advertising ban. By frequently changing domain names and operating from different jurisdictions, these companies remain largely unaffected by Google’s restrictions.

According to the UGC, this imbalance allows unregulated gambling services to capture a greater share of the market, diverting consumers away from legitimate operators and reducing the state’s tax revenue.

The UGC highlighted the significant impact of these restrictions: “As a result (of Google’s restrictions), companies lose customers and profits, and the state loses taxes.” The council also pointed out that some illegal gambling services may be operating from Russia, raising further concerns about capital outflow and national security.

Adding to the issue is the situation with lottery operators in Ukraine. The UGC noted that all lottery licenses expired in 2014, yet these companies continue to advertise freely on Google, often mimicking betting, online casinos, and other gambling services without proper oversight or tax contributions. This further exacerbates the challenges faced by licensed gambling businesses.

In an effort to address these concerns, the UGC formally appealed to Manickle Paul Terence, director of Google LLC, and Tetiana Lukinyuk, general director of Google Ukraine. The council requested that Google update its policies to allow licensed operators to advertise services such as land-based and online casinos, sports betting, slot machine halls, and online poker.

They also asked Google to lift restrictions on mobile app advertising, enabling licensed gambling operators to promote their services via Google platforms in Ukraine.

While awaiting a response from Google, Ukraine has continued its broader campaign against illegal gambling. A June 2024 report revealed that nearly 400 black market websites were blocked, bringing the total number of restricted sites close to 3,000.

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