Ukraine Closes Illegal Gambling Houses While Legislation Talks Are Ongoing

Home » Ukraine Closes Illegal Gambling Houses While Legislation Talks Are Ongoing

You must first clear weeds and overgrowth, which will prevent the construction of a strong, well-built house, before you start to build a house on a raw plot. Ukraine is now considering building a new legalized gambling industry at this stage. While there are many retrograde opinions that there is no consensus on the subject, illegal gambling has flourished throughout the country and police officers work diligently towards controlling the surge. According to the Ukraine Attorney General’s Office report, in a little over one month over 900 illegal gambling facilities were shut down.

Ukraine legislators last month before the law was axed tried to approve a legalized gambling bill. The idea was to allow the country to apply for licenses for more than 5,300 illegal gambling venues, but resistance to the idea was strong and the bill was abolished. Simultaneously, President of Ukraine Volodymyr Zelensky has ordered the closure of illegal installations.

Several investigative teams are reported to scour the country for illegal gambling, ready to blow on any found out. As these venues moved underground, they masked as internet cafes and karaoke bars, the battle was complicated.

According to Alexander Okolit, Head of the Strategic Investigation Department of the National Police of Ukraine,

“There are currently 715 mobile teams in the staff of the Investigative Unit and the Strategic Investigation Department. Mobile groups are constantly monitoring, as well as preventative measures to prevent illegal gambling.”

He adds,

“In total, there are about 5,300 illegal gambling establishments in the state, including lotteries, which have lost the opportunity to work in the legal field since the resolution of the Cabinet of Ministers. It’s also about bookmakers, casinos and other gambling establishments.”

The simplest way to help end a huge network of illegal underground gambling venues is to legalize the activities, as other countries have already realized. This is not only the way to protect consumers, but also to allow the state to collect huge taxes. According to Danylo Hetmantsev, Head of the Parliamentary Committee on Finance, Taxation and Customs Affairs, in Ukraine, this is estimated at around $190 million this year.

The Minister for Economic Development and Trade adds that approximately 33% of gross domestic product in the country is not available for publication. Since the economic output in Ukraine was approximately $155 billion in 2019, the country lacks a lot of unclaimed income.


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