Brands under license are held captive by the legal system, according to Kuchuhidze's statement.

In a recent disclosure, Anton Kuchukhidze, chair of the Ukrainian Gambling Commission (UGC), pointed out:

Brands under license are held captive by the legal system, according to Kuchuhidze's statement.

"In a scenario where legitimate brands are barred from promoting their services, shady enterprises effervescently occupy the informational void, causing a shift in the player roster towards the unlawful sector." He elucidated further, "Licensed brands have essentially become captives of their legal status."

Kuchukhidze advises exploring an alternate path based on the experiences of countries like the USA and Western Europe. "You won't discover stringent bans in these markets. Instead, they have regulation and control—but not blanket prohibitions," he underscores.

This approach, as per Kuchukhidze, increases competition among legitimate companies, fostering better conditions and increasing barriers for illegals. He underscores that promoting legal brands serves to diminish the "informational clamor" from illegal operators and generates revenue for media and budget contributions. These resources can be allocated towards programs promoting responsible gaming and preventing ludomania, as well as bolstering the quality of products and services provided by market participants.

A government decree imposed in May prohibits nearly all gambling advertisements. The law, slated to stay in effect until bill 9256-d is passed and enacted, is met with strong opposition from the business community, who deem the legislation corrupt.

Exploring the Extent of Ban Impact

• Illegal Gambling Boom: The prohibition of advertisements might inadvertently fuel the growth of illegal betting platforms. As seen in Italy, a stringent advertising ban led to an exodus of consumers towards unregulated operators that lacked proper consumer protection and failed to contribute to public policies[5].
• Public Support for Restrictions: Many countries exhibit backing for reducing or even banning gambling ads due to concerns regarding gambling-related harm and addiction[2][3]. However, it's essential to carefully evaluate these restrictions so as to avoid unintended consequences.

Navigating Regulation

• The American Regulatory Landscape: Discussions about regulating sports betting and gambling advertisements persist in the United States[3]. Proposed legislation, like the SAFE Bet Act, aims to tighten regulations on advertisements and betting practices.
• Balancing Policy and Consumer Protection: Crafting effective legislation requires a delicate balance between protecting consumers and directing them towards legal platforms. Advertisements can inform consumers about legal options, deterring them from unregulated operators.[5]

A Comparative Analysis

• The UK's "Whistle-to-Whistle" Ban: The United Kingdom has implemented a ban on betting ads during live sports events, adopting a more cautious approach to gambling advertising[1].
• European Regulatory Diversity: Western European countries exhibit a range of regulatory methods, with some, such as Italy, banning ads altogether while others, like the UK and the Netherlands, opt for more nuanced restrictions[2].

1. The prohibition of gambling advertisements in Ukraine might inadvertently lead to an increase in the patronage of illegal betting platforms, as observed in Italy after a strict advertising ban, where consumers migrated towards unregulated operators.
2. Many countries, including Ukraine, have expressed support for gambling-advertisement restrictions due to concerns about gambling-related harm and addiction, but it is crucial to carefully examine these regulations to avoid unintended consequences.
3. In the United States, discussions about regulating sports betting and gambling advertisements are ongoing, with proposed legislation like the SAFE Bet Act aiming to strengthen regulations on advertisements and practices.
4. Effective legislation in the gambling industry requires a delicate balance between protecting consumers and directing them towards legal platforms, as the appropriate advertisements can discourage consumers from seeking out unregulated operators.
5. Anton Kuchukhidze, the chair of the Ukrainian Gambling Commission, advocates for a regulation-based approach, as seen in Western Europe and the United States, to increase competition among legitimate companies, decrease support for illegal operators, and fund responsible gaming initiatives and public policies.

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