Ukraine's regulator mandates banks to scrutinize online payments for gambling activities

The National Bank of Ukraine (NBU) issued a mandatory requirement according to which banks must carry out a thorough check of online payments made by Ukrainian citizens as payment in online casinos. This is primarily due to the government's desire to regulate and control gambling in the country and prevent illegal monetary transactions in this area.

Restrictions on the operation of casinos in Ukraine

Stringent restrictions on the operation of casinos in Ukraine are currently in place. Until 2020, such entertainment was prohibited in the country, however, with the adoption of the Law "On State Regulation of Organizing and Running Gambling", the possibility of legalizing gambling opened up. According to the new legislation, land-based casinos can operate in hotels. Online casino activity is permitted by law and is fully regulated by the state Commission for the Regulation of Gambling and Lotteries (KRAIL). Currently, there are only nine legal online casinos.

KRAIL: Commission for the Regulation of Gambling and Lotteries

KRAIL is a state-run body responsible for the control and regulation of gambling in Ukraine, which was granted far-reaching powers:

• Issuance and revocation of licenses
• Compliance check
• Financial control
• Protection of interests and rights of players

The body reserves the right not only to check the compliance of the casino with the requirements of the legislation, but also to fully control the entire financial component of the gambling activities of the casinos.

Risks of illegal casinos

Illegal casinos pose serious risks to both gamblers and the country's economy. Unlike legal casinos, they are not subject to proper regulation and control. As a result, players may experience fraud, misuse of their personal data, and incorrect calculation of winnings and payouts.

Unlicensed casinos also do not pay taxes to the state budget, which leads to the loss of significant revenues for the country. This can negatively affect the development of social programs, infrastructure projects, and other important sectors.

The activities of such casinos contribute to the development of the shadow economy and money laundering. They can be used to "launder" money to sponsor terrorism and other illegal activities that pose a threat to the country's national security.

Checking online gambling payments will be an additional measure to combat illegal casinos. Banks will be required to monitor gambling-related transactions and report suspicious or illegal transactions. This will make it possible to strengthen control over financial flows and identify illegal casinos that try to circumvent legislation.

In general, the NBU's requirement to verify online gambling payments is a step in the direction of more effective control and regulation of gambling in Ukraine. This will help strengthen the legality and safety of the gaming industry, protect the interests of players, and prevent illegal activities in this area.

• Gambling can lead to a gambling addiction. Follow the rules (principles) of responsible gaming;
• Gambling cannot be a source of income or an alternative to work.