Ukraine Urges Google to Stop Blocking Legal Gambling Ads

The Ukrainian Gambling Council (UGC) has addressed Google with the request to stop blocking the advertising of licensed gambling operators who lawfully conduct their business in the territory of Ukraine. The UGC argues that the current, complete ban on all gambling-related advertising directly discriminates against legal businesses while helping illegal gambling operators.

The Bans Hurt the Regulated Sector

The issue stems from Google’s policy, which treats Ukraine as a jurisdiction where all forms of gambling except lotteries are banned. As a result, the search engine primarily blocks ads from licensed operators who have completed the government’s licensing process and obtained the necessary permits. These companies also contribute significantly to the Ukranian economy via taxes and license fees.

However, illegal operators who frequently change domain names and switch jurisdictions regularly bypass restrictions and appear unaffected by Google’s policies. This policy imbalance has prompted the UGC to voice its concerns about the growing presence of illegal gambling services. Their apparent freedom of advertising is diverting consumers away from the regulated market, hurting regulated operators, and endangering consumers.

As a result (of Google’s restrictions), companies lose customers and profits, and the state loses taxes.

UGC statement

Lotteries remain another point of contention as the UGC notes that all lottery operators are using licenses that expired in 2014. These entities are running gambling operations without the necessary permits or tax contributions, and some even mimic offerings like betting, online casinos, and slot machines with no oversight, further exacerbating Ukraine’s gambling-related problems.

Black Market Entities Present a Persistent Threat

Hoping to address this disbalance, the UGC has formally appealed to Manickle Paul Terence, director of Google LLC, and Tetiana Lukinyuk, general director of Google Ukraine, requesting updated policies allowing licensed gambling operators to advertise their services legally. Specifically, the council is imploring the tech giant to lift advertising restrictions regarding land-based and online casino gambling, sports betting, slot machines, and online poker.

While the UGC awaits an official reply from Google, the country remains steadfast in its ongoing efforts against illegal gambling operators. A June report revealed that the nation blocked nearly 400 black market websites, bringing the number of restricted entities to almost 3,000. These efforts should hopefully help protect vulnerable individuals, especially soldiers returning from the battlefield.

The UGC appeal underlines the need for a more balanced approach to regulating online gambling ads in Ukraine. The UGC hopes that Google will reconsider its stance and let licensed operators reclaim some of the market share lost to black market entities. Some of these illegal operations reportedly originate in Russia, further justifying Ukraine’s efforts to stop this capital outflow.