State budget loses approximately UAH 19 bln annually, with illegal gambling market estimated at 50% - PlayCity head
Annual budget losses, with the illegal gambling market estimated at 50%, amount to approximately UAH 19 billion, Hennady Novikov, head of PlayCity, the state agency for the control of the gambling and lottery business in Ukraine, told Interfax-Ukraine.
"When we talk about the 50% illegal market estimate, we can also calculate the losses. If last year the state received approximately UAH 19 billion in revenue from the legal segment, this means the budget loses approximately UAH 19 billion annually," Novikov noted.
According to him, in addition to financial losses, there are also social risks, including the development of gambling addiction, access to gambling by military personnel, as well as individuals under 21 and even under 18.
The PlayCity CEO added that the illegal gambling market also supports other illegal activities, such as the content piracy industry, which relies heavily on gambling revenue.
As reported, H2 Gambling Capital estimated the illegal gambling market share in Ukraine at 45.6%, with a forecast to grow to 58% by 2030. According to estimates by Kantar, Gradus, and Factum, the illegal gambling market share in Ukraine ranges from 39% to 53%.
Novikov noted that the agency agrees with these assessments and, together with the Ministry of Digital Transformation, has set the strategic goal of systematically reducing the share of the illegal market through a combination of regulatory and technical tools and incentives for legal operations.
According to him, priorities include blocking illegal online resources and working with "mirrors," narrowing the payment and marketing schemes that support shady activities, and creating clear rules for businesses to determine where legal operations are more profitable and easier.
Novikov added that the agency is in dialogue with the National Bank of Ukraine to combat these payment schemes.