The Ukrainian Gambling Council has objected to Google's strict gambling ad policy. To protect the regulated market, UGC is appealing to the tech giant to allow adverts from licensed operators. According to the council, a blanket ban is unfair but would also help illegal operators at the expense of legitimate businesses. 

This standoff has caused serious concerns in Ukraine's legal gambling sector, trying to compete with black market websites that easily get around Google's rules on advertisements.

 The Impact on Ukraine’s Legal Gambling Sector

Since gambling was legalised in Ukraine in 2020, licensed operators have heavily invested in the industry, conforming to all legal requirements and paying vast amounts in taxes. Google’s policy, however, still prohibits those operators from advertising on its platforms, considering Ukraine a jurisdiction where all forms of gambling except lotteries are prohibited.

According to the UGC, this policy directly undermines the development of the licensed gambling market. The licensed operators could not reach customers on the same platforms where the rogue websites thrived. In turn, Ukraine's economy is deprived of considerable tax revenues, and the licensed businesses are being defrauded of customers by unregulated services offering gambling.

Black Market Gambling Thrives

Illegal gambling operators have been quick to exploit loopholes in Google’s policies. By frequently changing domain names and shifting jurisdictions, these websites remain largely unaffected by ad restrictions. This gives them a major competitive advantage and poses a serious risk to Ukrainian consumers. 

Players on unregulated sites face little protection, and the absence of legal oversight increases the risk of fraud, addiction, and unfair play. The UGC has pointed out that these illegal operators benefit from profits that should go to the state. Many of these unlicensed websites have ties to Russia, further aggravating the situation in a country already on edge due to the ongoing conflict.

While the Ukrainian government continues to block black market websites, having taken down nearly 3,000 such sites in recent years, Google’s advertising policies continue to give illegal operators the edge.

 Google’s Stance on Gambling Ads in Ukraine

Google’s policy on gambling ads in Ukraine stems from a broader corporate stance to protect users from potential harm. The tech giant treats Ukraine as a high-risk jurisdiction, opting to enforce stricter advertising rules for all gambling-related content, except lottery advertisements.

Google has not made any public statements regarding the UGC’s request to lift the ban. However, it remains clear that the search engine giant is wary of the risks associated with gambling, especially in regions with a volatile regulatory environment. 

Despite these concerns, licensed operators argue that the policy is doing more harm than good by fueling illegal gambling, leaving Google with a complex ethical and business decision.

 UGC Calls for a Balanced Policy

The UGC still pressures Google to change its mind and develop a more weighted policy regarding Ukraine. The council requests that a line be drawn between regulated operators, who pay into the economy and adhere to legal standards and illegal entities that exploit Google's ad restrictions.

They have formally appealed to the director of Google L.L.C., Manickle Paul Terence, and the general director of Google Ukraine, Tetiana Lukinyuk, to lift the ban. They request to advertise their licensed operators' land-based and online casino games, sports betting, online poker, and mobile gambling apps.

The UGC's argument is rather simple: The licensed operators have played by the book, paid their taxes, and invested in the market. They must be allowed to advertise their services legally, which would have had a positive effect on reducing black market gambling.

 The Road Ahead for Ukraine’s Gambling Market

Ukraine's fight against illegal gaming is far from over. While this government achieved the important step of blocking illegal websites, regulated operators suffer from a glaring imbalance in advertising. 

The UGC expects that licensed operators will be able to regain market share and compete more effectively with illegal operators after Google's blanket ban is lifted. Meanwhile, the Ukrainian market is very likely to proceed with work on regulating the industry and rescuing citizens from the dangers of gambling on the black market.

Of course, Google has to make this decision, and the Ukrainian gambling sector is holding its breath while it awaits an answer.