Responsible Gambling in Ukraine: Regulation, Security, Marketing

In July 2020, the Verkhovna Rada of Ukraine adopted a law on the legalisation of gambling entertainment. In the process of creating the document, the BP Finance Committee, headed by Daniil Getmantsev, paid special attention to safe gambling.

Key Norms of Ukrainian Legislation

Anton Kuchukhidze, head of the Ukrainian Gambling Council, noted:

To date, the state and the legal gambling business have created a legal and practical framework to protect the life and health of citizens.

Comprehensive Industry Engagement

In the domestic legal field, all market participants are responsible for supporting safe gambling:

• The task of the state is to develop and implement a regulatory framework, as well as control the organisers in terms of fulfilling their obligations for a safe game. For these purposes, an interdepartmental body was created — the Commission for the Regulation of Gambling and Lotteries (CRGL).
• Licensed operators must identify clients in a timely manner, provide them with comprehensive information about the risks of this activity (for example, gambling addiction), and use honest advertising.
• Manufacturers of software and equipment for casinos are required to certify their products on time. We are talking about testing the built-in RNG, which determines the order of winning combinations. Shuffle machines (equipment for shuffling cards), roulette tables, payment modules and other components are also subject to verification.

How the Government is Protecting Gamers

Ivan Rudy, the head of CRGL, noted:

Licensed companies follow the principles of responsible gaming. They [principles] are a deterrent to minimising the impact of gambling on an individual.

Consider the key provisions of law No. 768-IX:

• Access to land-based casinos and gaming sites is closed to users under the age of 21, citizens who have previously entered themselves into the register of persons with gambling addiction. Entry is prohibited for incapacitated or temporarily incapacitated persons, low-income citizens. Those who have financial debt — loans, utility bills, alimony — can’t play.
• During the registration process and each subsequent entry to the gambling site (visiting a land-based establishment), operators must identify customers.
• The organisers have access to the following tools to combat gambling addiction: self-restriction lists, alert systems, time limits, number of spins, bet sizes.
• In 2022, the government plans to launch an internet monitoring system. All licensed operators will be connected to the service. The system will monitor the actions of the organisers 24/7. The focus is on timely identification, accrual and payment of taxes (for example, on winnings), cash transactions exclusively through the casino cashier, and much more.

Verification of Gamers: Rules and Available Methods

Alexander Tolokonnikov, the founder of the Cideips Center for International Communications, noted:

Identification is an expensive event for operators, but it is strategically important for the development of Ukrainian gambling in a legal way.

Law No. 768-IX envisions primary and secondary verification.

• At the first stage, the operator needs to collect real user data (full name, passport number, date of birth), check it for presence in the self-restriction lists or debt registers, and, based on the processed information, decide whether to allow the gambler to play or not.
• At the second stage, the organiser issues an identification card (plastic or electronic) to the visitor of the casino or gambling site. It indicates the full name of the gamer, photo and contact details, and a special barcode. At each subsequent visit to the hall, the player must present the card to the administrator or scan it on the website using QR technology.

The legislation allows several methods of primary verification:

Electronic digital signature (EDS)

The gambler needs to create an EDS on one of the licensed internet services. In the same place, they indicate their full name, contact details (e-mail address, mobile phone number) and a password to enter.

The system generates an EDS, which can be used at the time of entering the gambling site. Data between the service and the casino is synchronised instantly.

Mobile ID

Modern technology for linking personal information to a SIM card. This is the full name, date of birth, passport and identification code numbers, a sample of a digital signature.

Bank-ID

The method is based on the information of bank client accounts. As you know, when receiving a loan or making a deposit, a financial institution asks for as much information about the client as possible.

The information collected may be used by third parties, such as legal operators. To do this, the bank client must allow the use of data and install the Bank-ID application on his gadget (PrivatBank, Monobank and other institutions have similar solutions).

Photo and video verification

The organiser asks the client to send their photo or video, which clearly shows the face of the gamer and an identity document. This is a passport (Ukrainian or foreign), ID card, driver's licence.

Identity verification can be carried out through the state internet service "Diya". So far, only a few legal operators offer such a service, but over time, identification will become available in all online casinos.

For non-compliance with the verification procedure or admission to gambling entertainment of minors, a fine of 500 minimum wages is provided. Repeated violations will result in licence revocation.

Security Software: Full Protection for Gamers and Online Payments

Key principles of responsible gambling include:

• security of clients and their money transfers;
• full safety of user data;
• support for Fair Play (the honesty of the gameplay).

Installing security software fully solves the tasks set, ensures the transparency of the casino business and comfortable work in a legal field. The system automates many routine tasks, including verification, transaction verification, repelling hacker attacks, combating bonus abuse, and much more.

Consider the current offers from leading security software providers:

1. Featurespace. This company has developed a universal system for protecting financial transactions on the Web. The service prevents fraud with bank cards and payments, protects mobile casinos from the inside, controls the actions of B2B partners (for example, the levels of access to confidential information). The movement of funds is checked for compliance with international AML (anti-money laundering) and IMF (anti-terrorist financing) policies.
2. AFIMAC. This security software is in huge demand in North American and European markets. The certified program contains three modules — for client verification, payment verification, and protection of the gambling site perimeter and a physically remote server. Client verification includes primary and secondary identification, which complies with Ukrainian legislation.
3. Yoti. This English company has developed a universal software for verification based on biometric face recognition. This is a reliable and effective method of identity verification with 100% truthfulness of the result. The provider has an E-signing service for creating an electronic digital signature. The program line is approved by the international system SOC2 (System and Organisation Control).
4. AcuityTec. This Canadian provider offers a multi-component service to protect the site and verify internet payments. The software checks online traffic at all contact points of a gambler — from the moment of creating a game account to entering a transaction. Verification takes into account geolocation and IP addresses, which are automatically recorded by the program at the time of registration.
5. TransUnion Company (iovation). This software is based on artificial intelligence technology. The system instantly reveals hidden associations and monitors financial flows in real-time. The software successfully fights against anonymous proxies, multi-accounting, verification evasion and other fraudulent activities.

Ethical Marketing in the Gambling Industry

One of the key components of responsible gambling is fair advertising. Marketing activities should not be directed at minors and low-income persons, contain a direct appeal to the game or information about fabulous incomes.

The operator must convey to the audience that gambling is a way to take a break from a hard day's work and have fun with friends. Slots and table games are not at all a source of income, as dishonest companies say.

At the end of 2021, members of the Ukrainian Gambling Council signed a Memorandum on the legal advertising of gaming entertainment. It was initiated by 11 licensed organisers who entered the domestic market last year.

Anton Kuchukhidze noted:

The Ukrainian gambling market is young and is just taking its first steps, but in just a few months, the operators were able to organise themselves and find common ground. The result was the Advertising Memorandum.

The main provisions of the document:

1. It is forbidden to advertise gambling entertainment on radio and television from 6.00 to 23.00, on billboards, on sites that contain information of a pornographic nature. iGaming brand logos cannot be placed on products (clothes, shoes, accessories) that are intended for citizens under the age of 21.
2. Marketing materials should include a warning text: “Gambling can lead to ludomania. Stick to the rules of responsible gaming." The size of the ad must occupy at least 15% of the total advertising space.
3. Links and QR codes for a direct transition to gambling sites cannot be placed on sponsored material. The name of the iGaming company should occupy no more than 40% of the area of ​​the advertising banner.
4. Promotional materials (flyers, videos, internet banners) cannot contain elements that imitate the gameplay. This is the mixing and distribution of cards, the rotation of the slot, the throwing of chips and other actions.

The Main Things about Responsible Gambling in Ukraine

Domestic legislation has been developed taking into account the protection of citizens from the negative consequences of gambling and control of the actions of operators.

• Casino entertainment is prohibited for persons under 21 years of age, citizens with signs of gambling addiction or financial debt on loans, alimony, utilities.
• One of the important conditions for legal work is the timely identification of a person. It can be carried out on the basis of photo and video verification of the client, using EDS, Mobile-ID and Bank-ID methods.
• The principles of responsible gambling include the protection of confidential data, security of payments, prevention of money laundering and terrorist financing. Installing security software will help the operator to cope with the tasks, make his work as comfortable and efficient as possible.

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