The end of credit excitement: NBU bans gambling with debt
21 June 2024 15:02
Starting from 22 June 2024, the National Bank of Ukraine (NBU) will introduce a new restriction in the field of gambling. From now on, bank customers will be prohibited from making payment transactions to the accounts of gambling organisers using credit funds. This was reported by the NBU press service, according to "Komersant Ukrainian"
The changes were introduced by the NBU Board Resolution No. 72 of 21 June 2024, which amends the previous resolution of 24 February 2022.
According to the regulator, this decision was made to minimise risks to the country’s financial system, reduce the negative effects of online gambling and protect consumer rights. The NBU also expects that this step will contribute to the development of responsible consumer lending.
The new rule comes into force tomorrow, 22 June 2024. It applies to all types of credit facilities that could previously be used for gambling.
This initiative by the NBU is part of a broader effort to regulate the gambling industry in Ukraine.
Gambling business in Ukraine
The gambling business in Ukraine has a complex history. Until 1989, gambling was banned in the USSR. After gaining independence, legal gambling started to develop in Ukraine, with the first casino opening in Kyiv in early 1991. However, in 2009, a law was passed to completely ban gambling, which led to its criminalisation and the development of the illegal sector.
In August 2020, a law on the legalisation of gambling came into force, allowing offline and online gambling, betting, slot machine halls and poker. The Commission for the Regulation of Gambling and Lotteries (CRGL) was established to oversee the industry. Despite the legalisation, problems remain: according to the expert, as of 2023, there were 14 legal and about 1,100 illegal casinos and betting companies in Ukraine. The authorities continue to fight the illegal sector by introducing new restrictions and sanctions against violators.
After the full-scale Russian invasion, the problem took on a new dimension. It is believed that there is a whole epidemic of gambling addiction among Ukrainian soldiers at the frontline. There is no concrete evidence of this, nor is there any systematic journalistic or scientific research, but after a series of petitions, President Zelensky signed a decree to restrict online gambling. Gambling advertising and sponsorship may also be banned in Ukraine.
