What is wrong with restriction of legal online casinos in Ukraine?

On August 16, our edition published a material about a certificate from the bookmaker company Favbet, issued by the Ukrainian prosecutor Boyarenko, and the subsequent high-profile scandal in Ukraine. The official is suspected of ties with the bookmaker and conflict of interest. After the publication of the material, the official appealed to us to exercise his right to reply. Ensuring this right, we publish the corresponding column of the author completely without any amendments.

What is wrong with restriction of legal online casinos in Ukraine?

Artem Boyarenko, Prosecutor of the Office of the Prosecutor General of Ukraine

Today I address the European media not only because of the situation that has developed around me. I would like to remind you that I am stigmatized and accused of corruption in Ukraine because of allegedly friendly ties with the gambling operator Favbet – the largest taxpayer in the gambling sector of Ukraine. I am worried about something else. Why the media of the country, which is at war with a powerful enemy, the Russian Federation, turn this business into a thief, even though it is this business, unlike the media, pays huge taxes, and forms the state budget, including that for defense? Can anyone want this business to become illegal again, and not pay taxes? Do editors of publications that arrange attacks against me fully understand the consequences of this?

Unfortunately, in Ukraine it is not so easy to talk openly about the gambling business today. Under pressure paid by illegal campaigns, there are changes lobbied in the legislation, which now prohibits any approving statements about gambling companies in any form. This can be perceived as advertising. For this, sanctions can be imposed even on the official and a fine on the site that posted it. But there are topics worth talking about, regardless of sanctions or taboos.

Everyone is now discussing the Favbet certificate found in my office for my efforts in the fight against the illegal market. Strangely, fake news stories about this provoked a negative response. Let us put aside the moral aspect of the issue – black PRs find damaging information, because it is my personal business to hang on the wall in the office. But from a legal point of view, this does not violate even the service instructions, not that the law. No rule prohibits giving or accepting signs of thanks, which have no material value. In addition to the cost of a piece of paper and printer ink.

So, someone very much wants to shift the attention of society from the urgent challenges of the country, and under the heat of hype and scandalous smears and media manipulations to extend their “theme”. Which, I have no doubt for a second, will make my country weaker. But we will not let them do it.

Let’s look at the situation strategically and sincerely, without malice. The main question that should be paid attention to now is how to save Ukraine, which is at war with a powerful enemy that outnumbers it at least twice in human resources and armaments? Is it possible to say that we will survive and win thanks to Western aid, which is constantly delayed, then diminishes?

According to official sources, since the beginning of the full-scale war, the West has provided Ukraine with more than USD 165 billion in aid, most of which has been directed to military purposes. But is this enough for the country to survive in the conditions of continuous conflict? Certainly not, if we are dealing with such a powerful enemy.

Yes, these funds are important, but at what expense does Ukraine actually survive on a daily basis? Partly it is the result of the hard work of the Ukrainian people, but another significant part of the economy is the income from gambling. Judge for yourself.

According to official data, for the first half of 2024, the taxation of the gambling business brought UAH 8.4 billion of revenue to the budget of Ukraine, which is 99 times more than in the six months of 2021; 39 times more than in the whole of 2022 and 3 times more than in the whole of 2023. Expected revenues from this business make – UAH 20 billion every year! And this implies military salaries, their food and military support. Why should we push these taxpayers away and drive them into the “shadow” because of some absurd accusations of corruption?

The real threat to Ukraine is not those “certificates” that become a reason for gossip, but illegal players and those who are connected to Russia. The Ukrainian law enforcement system works effectively against them both. In particular, one of the biggest players, founded by a Russian citizen, was recently withdrawn from the market, the name of the company being symbolized immensity and infinity, but honest professionals were able to put an end to this Russian inmensibility. In total, 450 criminal proceedings have been opened on the facts of illegal activities with organizations or conduct of gambling and lotteries. 600 sites that host resources with illegal online casinos have been blocked.

These figures are a convincing illustration of the reasons why I and legal market participants are being hunted by illegals.

Why is normal functioning of the legal market and protection of legality in it important? Let us trace this on the example of the market leader. For the first six months of 2024, the Favbet group of companies paid more than UAH 3.15 billion to the Ukrainian economy, that is more than UAH 3.1 billion in taxes and another 41.3 million in license payments. In the first half of 2024, more than UAH 143 million was allocated to the charity and needs of the Armed Forces. In total, since the beginning of the full-scale war in Ukraine, the Favbet group of companies with the participation of the Favbet Foundation donated more than 280 vehicles and more than 650 drones of various types to the Armed Forces of Ukraine.

Therefore, the legalization of gambling in Ukraine is a matter of economic survival and national security. In its turn, illegal gambling is not only a loss for the budget, but also a direct risk to the security of the country. So why do we condemn those who encourage legal gambling? It is double standards and dangerous manipulation.

Finally, I want to say: despite all the existing problems, people continue to talk about this ill-fated letter. But they do not think about the fact that the survival of Ukraine is at stake, which directly depends on economic stability, and however paradoxical it may sound – on gambling.

Everyone wants to see Ukraine as a country of Heroes, not a country of gamblers and ludomons. But the reality is much more complicated. And this reality requires us to make responsible decisions and their mature discussions, not chasing after sensations.

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