V. 01 - Nº 01 - Ano 2020 – Special Edition

156 DECRIMINALIZATION OF IN : INTERNATIONAL EXPERIENCE Oleg Grudzur1 Viktoria Babanina2 Vasyl Shakun3 Viktor Sushchenko4 Yuriy Harust5

Abstract: The relevance of this article is significance of the obtained results is due to the fact that the entertainment reflected in the fact that this study may sphere is one of the most important serve as a basis for outlining future components of filling the national and changes to the current legislation of world sectors of the country’s economy. Ukraine on the gambling business The purpose of the article is to carry out functioning in Ukraine. scientific research on the functioning and overall reform of the gambling business Keywords: gambling games, corruption in Ukraine, to study foreign experience development, legalization of gambling, of developed countries of the world in ban on gambling, shadow economy. this field. The leading research methods are general scientific and specific Introduction research methods, including methods of Gambling games, as a social logic, analysis, comparison etc. The phenomenon, arose at a certain stage of results of this study are to identify the civilization, which contributed to the socio-economic grounds for legalizing formation of a whole complex of gambling business in Ukraine and to inextricably linked relationships of a outline a national legal mechanism for certain nature: improving activities in this field. The

1 National Academy of Internal Affairs, Solomianska Square, 1, Kyiv, 03035, Ukraine. E-mail: [email protected] 2 National Academy of Internal Affairs, Solomianska Square, 1, Kyiv, 03035, Ukraine 3 National Academy of Internal Affairs, Solomianska Square, 1, Kyiv, 03035, Ukraine 4 National Academy of Internal Affairs, Solomianska Square, 1, Kyiv, 03035, Ukraine. 5 Sumy State University, Rimsky-Korsakov Street, 2, Sumy, 40007, Ukraine

V. 01 - Nº 01 - Ano 2020 – Special Edition

157 – emotional (thrill of the countries earn on transit through their competition, excitement in case of territory (Egypt, Panama), while others winning or losing); sell their labor force (Philippines, – cognitive (interest in Pakistan, Bangladesh). But is it possible learning about a new phenomenon that is to criticize those countries that are trying not imposed by the state, but is to raise the standard of living of their determined by personal will); citizens by legalized gambling. – economic (interest in Nowadays, activities for the organization winning, desire to have money to and conducting of gambling is officially participate in the game); authorized in all countries of Europe, – psychological (passion except San Marino and Liechtenstein, in for the game, desire to participate in the virtually all of North and South America game and win); (except Cuba), in many countries in Asia – legal (the need to regulate and Africa, Central America, Australia gambling relations); and Oceania. Moreover, the EU is – political (the preparing to adopt a single law for all implementation by the state of members of the European community, promoting or prohibiting policy) after which discussions on the possible (Kapitanenko, 2013). closure of the industry in non-EU The first mention of gambling countries will cease for many years appeared 3500 years BC, their history (Kovtun, 2008; Harust et al., 2019; begins with the dice that were found Manzhula et al., 2019). during excavations in Greece and Egypt. Gambling has been developing The first gambling establishments very rapidly since independence in existed during the time of Ancient Rome. Ukraine. However, the Law of Ukraine In the Middle Ages gambling spread “On Prohibition of Gambling in throughout Europe, becoming an integral Ukraine” No. 1334-VI, adopted by the part of the social activities of wealthy of Ukraine on May 15, lords. Not every state has 2009, introduced a complete ban on treasures that can ensure its prosperity gambling (Law of Ukraine “On for many years. It can be treated Prohibition…, 2009), and the Law of differently to the fact, that some Ukraine “On Amendments to Certain

V. 01 - Nº 01 - Ano 2020 – Special Edition

158 Legislative Acts of Ukraine on pay taxes to the state, which deprives the Improvement of the Law on Prohibition budget of the country of significant cash of Gambling in Ukraine” dated flows, which are used to illegally December 22, 2010 under No. 2852-VI enrichment and funding other illegal (Law of Ukraine “On Amendments…, activities. S.V. Riabchuk draws attention 2010) amended the Criminal Code of to the fact that gambling is connected Ukraine by Article 203-2 “Occupation of with committing other socially the Gambling Industry”. This Law of dangerous acts, such as bribery of Ukraine, which came into force in 2011, officials of the controlling bodies, fraud, introduced criminal liability for involvement of minors in criminal organizing and conducting business activity, legalization (laundering) of activities in the sphere related to income obtained by criminal means, tax gambling. The concept of “gambling” in evasion, fees (compulsory payments) our country is legally defined and is (Riabchuk, 2018). The conducted contained in Article 1 of the Law of researches prove that the ban on Ukraine “On Prohibition of Gambling in gambling in 2009 did not produce the Ukraine”, which states that “gambling is desired result and its complete an activity related to the organization, termination, but on the contrary brought conduct and provision of access to it out of the law and completely gambling at , gambling criminalized, creating a favorable machines, computer simulators, in environment for the development of bookmakers, in online establishments, in corruption, development of the shadow electronic (virtual) casinos regardless of market, led to withdrawal from the the location of the server” (Law of domestic economy billions of hryvnia Ukraine “On Prohibition…, 2009). (Rukhliadin and Stetsenko, 2011; The main reason for the ban on Kucheriavyi, 2014; Ovcharenko, 2018). gambling is that according to Ukrainian society, gambling is a negative social Materials and Methods phenomenon, which has an increased The following methods were social risk. It is that a large amount of used during the research: general money is being accumulated in this field, theoretical (analysis, synthesis, from which gambling organizers do not concretization, generalization, analogy

V. 01 - Nº 01 - Ano 2020 – Special Edition

159 method, modeling); empirical methods For example, 48 states (out of (research of experience of full or partial 50) have been granted gambling permit legalization of gambling business in by the authority in the US: there are Ukraine and abroad, research of gaming machines, bookmakers, normative-legal and scientific- racetracks, etc. Interestingly, the methodical literature on the given issue, operates at this time only in two scientific researches and conclusions). cities: Las Vegas (Nevada) and Atlantic Exploring the expediency of lifting the City (New Jersey). According to the ban on gambling in Ukraine, it would be National Council on gambling addiction, logical to analyze how these social about 1% of American adults can be relations are regulated in other countries considered pathological players, another of the world and to analyze different 2-4% are close to it. Overall, 85% of models of their functioning. Thus, residents played for money at least once modern scholars today distinguish three in their lives. On July 21, 1998, the US models of legal regulation of gambling Senate decided to ban gambling on the entities: Internet with simultaneous permission, 1) partial legalization, at the same time, use of the Internet for envisaging the creation of special holding state lotteries and games in gaming zones outside settlements (EU which they make a bet with each other countries, Finland, United Kingdom, (Riabchuk, 2018). Kazakhstan, Denmark, Austria); Considering that the European 2) a complete ban on the Union has no competence to regulate the activities of such entities (Pakistan, Iran, field of gambling games and gambling Afghanistan, Saudi Arabia, Indonesia, business, accordingly, there is no EU Israel, Libya Bahrain); common law on gambling, that is why 3) full legalization of the the EU member states regulate this gambling business, but only within the market independently. All EU countries framework of strict state control and have legislation on gambling. The creation of special licensing conditions overwhelming majority is characterized for this industry (USA, Ukraine until by the adoption of national legislation 2009) (Muliavka, 2010; Riabchuk, that establishes a uniform legal regime 2018). for gambling business throughout the

V. 01 - Nº 01 - Ano 2020 – Special Edition

160 country. There is no consensus among continue to be regulated locally. The EU countries about the number of laws – particular situation is in Germany, where one or more – governing different types at the national level the Inter-Land of gambling. Some countries have a Gambling Agreement is concluded and single piece of legislation covering all periodically updated, and each land gambling (for example Netherlands, adopts its own legislation in compliance Poland, Romania, Sweden). Other with the conditions set out in this countries have followed the passage of agreement. However, certain types of industry laws (for example, in Ireland gambling and certain aspects of there are the law on gambling and gambling are governed by federal laws. lotteries and the law on bookmaking, in In France gambling can only be Italy each sector of gambling services is done in cities with more than half a governed by separate legislation, in million people, and in the capital of the Lithuania there are laws on gambling and country it is generally forbidden. In the ) (Sergienko, 2015). UK gambling establishments operate in However, in individual 53 government-designated areas. There (primarily federal) states, regional is only one casino in the whole country authorities have the power to enact local in Finland, and this type of business is legislation governing gambling in their allowed in China only in Macau. respective territories. For example, in Australia is leading in the number of Austria, the activities of casinos, gambling machines, in which 200 lotteries, card games and are thousand pieces account for 20 million regulated at the federal level, and at the people (Medytskyi, 2008). In the Swiss level of each member of the federation Constitution Article 106 is entirely (land) – of sports bookmaking and slot devoted to the regulation of the gambling machines outside the casino. In Spain the sector. It provides for such activities on sphere of gambling is regulated both at the basis of a license issued, taking into central (national law) and at local level. account regional conditions and the risk Each of the autonomous communes of gambling. The Law “On Gambling passed its legislation on the basis of and Gambling Houses”, dated 1998, is powers delegated by the central effective in the development of the government. In Italy only casinos Constitution (Prykhodko, 2008).

V. 01 - Nº 01 - Ano 2020 – Special Edition

161 However, it should be noted gambling market in EU countries. But that in order to improve European this is in the European Union, and it is cooperation in this area, a Cooperation probably irrelevant to compare it with Agreement was concluded on 27 Ukraine, given into account our November 2015 between the regulatory mentality and level of social culture of authorities of the member states of the citizens (Myrhorod-Karpova, 2019). European economic area in the field of That is why we have taken for gambling for online gaming services. It conducting the research a country that should also be noted that in all EU has a historical path of development very countries gambling is legal, although in close to us as well as the mentality close some of them it is substantially restricted to the Ukrainians. In our view, the in order to adequately protect and economic prosperity, that Georgia has balance the interests of different groups achieved over the last decade, requires of society. According to data posted on exploration of both the process of the European Commission’s website, the reforming the Georgian economy and gross profit of the European Union game borrowing from the Georgian market in 2015 was estimated at around experience, including in the field of € 91.6 billion, of which 14% (about € 13 gambling. Georgia’s current legislation billion) was from the online market, allows all types of gaming to be in the accordingly, 86% (about € 78.6 billion) legal field. Among the main types are is from the offline market. Bookmaking casinos, bookmaking business accounts for the largest share of the (including sweepstakes), lotteries, slot European Union’s gambling market – machines, gambling clubs. In the online 33%, poker and casinos account for 22% segment the law allows for the and 21% respectively, state lotteries organization of casinos, sweepstakes and account for only 11% of the market salons. A peculiarity of (Ovcharenko, 2018). gambling organization in Georgia is the fact that the existence of a real Results and Discussion (terrestrial) gambling establishment is Summarizing the above, we can obligatory for the system of electronic- conclude that there is a certain pattern of gaming. Gambling in Georgia is annual growth in the volume of the

V. 01 - Nº 01 - Ano 2020 – Special Edition

162 governed by a number of legal acts, foreign nationals. Georgia gambling including: permits are paid annually. Initially, the – Georgian Law “On the licensee pays for the first year of its Organization of Lotteries, Gambling and activity, and then annually extends the Profit Games” No. 1180 (Georgian Law validity of the permit by making the next “On the Organization…, 2005); payment. The amount of the permit fee – Georgian Law “On depends on the venue of the gambling Licenses and Permits” No. 1775 activity. The entities that organize this (Georgian Law “On Licenses…, 2005); type of business in the resort areas pay – Georgian Law “On the lowest fee for gaming licenses. Such Licensing and Permitting Fees” No. a policy is aimed at developing 2937 (Georgian Law “On Licensing…, Georgia’s tourism infrastructure. For 2003); example, casinos and other gambling – Georgia Law “On establishments in the resort cities of the Gambling Charges” No. 4250 (Georgian country (Borjomi, Batumi, Kabuletti) Law “On Gaming…, 2006); enjoy considerable privileges when – Georgian Tax Code No. setting fees for the issuance of an 3591 (Georgian Tax Code…, 2010); operating permit. In particular, the – Joint Order of the annual fee for organization of casinos in Minister of Finance and the Minister of Batumi is 250 thousand lari and in Tbilisi Internal Affairs of Georgia “On – 5 million lari. If this amount is Approval of the Rules of Checking the transferred into national currency at the Exercise of the Permit of Gambling and rate of the National Bank of Ukraine as Other Profitable Games by the Owners” of November 1, 2016, it will amount to No. 611-1013 (Joint Order of the about € 89,000 in Batumi, and about € Minister…, 2011). 1.8 million in Tbilisi (Riabchuk, 2018). In Georgia the procedures and It is worth noting that the requirements for obtaining a license to licensee for the organization of casinos organize and conduct gambling are quite in Batumi places this institution in the liberal. Companies registered in Georgia territory of newly built hotels with at can be approved, but the owners of the least 100 rooms, then he/she is exempted companies can be both Georgian and from paying for a permit for a 10 years’

V. 01 - Nº 01 - Ano 2020 – Special Edition

163 period. In addition, it is free of charge to gambling is in the legal field and works organize casinos in the municipalities of to develop the economy of the country is Kazbegi, Tskaltubo and Signagi. The an example and the basis for the situation is similar with the amount of legalization of gambling in our country. the fee for obtaining permits for other The attitude to the issue of the types of gambling (lotteries, legalization of gambling in Ukrainian bookmaking, gambling clubs). For society is different, but everyone is example, the fee for a permit to organize aware that with the proper level of a bookmaker’s office in Tbilisi is 200 control and regulation of gambling, it thousand lari per year, and in the will still bring more public benefit than administrative districts of Batumi, its prohibition. Thus, gambling, if Kutaisi, Rustavi – only 80 thousand lari properly regulated and controlled by the per year. Due to the legalization of state, can benefit society by paying Georgia’s gambling business, it was considerable taxes and filling the state possible to attract additional incomes to budget. It should be noted that the cost of the country’s budget. Gambling revenue obtaining a license in accordance with is an important part of the local budgets the bills submitted to the Verkhovna of many cities and municipalities in Rada of Ukraine is approximately 50 Georgia. In 2014 this figure averaged million hryvnas, which is credited to the 24% of the budgets of the six largest State Budget. We saw a positive cities and the Kazbek municipality. experience of replenishing the state Particularly noteworthy are the border budget in our country in 2005, when the settlements: Kazbegi (39%), Batumi sphere of gambling was not forbidden, (34%) and Zugdidi (32%) (Serhiienko et and the issuance of a lottery license cost al., 2015). € 30 thousand, not taking into account In view of the above mentioned, the income from the profits and winnings we have come to the conclusion that the of the institution, quite considerable experience of foreign countries in the amounts. The prior to the ban on field of gambling in filling the state gambling the profits from its operations budget, and that in almost all countries of amounted to 16 billion hryvnas annually. the European Union and many According to preliminary estimates, if developed countries of the world, the casinos are legalized with the

V. 01 - Nº 01 - Ano 2020 – Special Edition

164 appropriate cost of licensing, the state resort cities pay to the state budget at will receive over one billion hryvnias least 80% of annual income, in Finland – annually (Legitimate fraud…). It is 70%, the funds received go to the social normal practice to improve the economic needs of the population, namely to situation through profit through support the vulnerable segments of the legalization of the gambling business. As population, the maintenance of orphans an example, France’s elite casinos in and prisoners (Table 1)

Table 1: Size of tax rates in European countries Country Tax on gross gaming income Turnover tax rates Austria - 2% Belgium 15% (total rate) - 11% (for ) Bulgaria 20% - United Kingdom 15% (total rate) - 50% (land-based casino) Estonia 5% - Spain 10-25% (depending on the - type of game) Italy 20% 2-5% (depending on the type of game) Cyprus 13% - Latvia 5% - Malta - 0.5% Netherlands 29% - Germany 12-20% (for gambling 5% (for bookmaking services) machines) 20-80% (for a land-based casino) Poland - 12% (for bookmaking services) 20% (lottery) 50% (slot machines) Romania 20% -

V. 01 - Nº 01 - Ano 2020 – Special Edition

165 France - 8.8%

Source: made by the author on the basis of researches of I.V. Serhiienko, I.I. Fomina, and R.B. Khorolskoho (Serhiienko et al., 2015).

Discussions on the feasibility of still exists, but to improve the very legalizing gambling have been underway mechanism of existence of this business. for more than a year, both in political and Taking into account foreign experience, academic circles, and meanwhile the and according to the results of our State Budget has been losing significant research, we can say that Ukraine needs revenues that could have been used to to develop its administrative and legal improve the social situation in the mechanism of decriminalization and country. Given the decline in socio- legalization of the gambling business, economic development of Ukraine, the taking into account the mentality of issue of legalization of gambling in Ukrainians. Gambling places must be Ukraine is extremely urgent. In order to clearly identified. We suggest to place formulate and implement an effective gambling rooms at five star hotels and state policy in the field of gambling international airports. In turn, the area of regulation in Ukraine, a draft Law of the playroom should not be less than Ukraine “On State Regulation of 1000 square meters. This, in turn, will Gambling Organization and Conduct” ensure the inaccessibility of gambling No. 2285 was registered (Law of establishments of socially disadvantaged Ukraine “On State…, 2019). sections of the population, minors and While conducting our research the poor. At the same time to allow to we can say that despite the ban on equip no more than one casino for 300 gambling in Ukraine and the thousand persons in one regional center, introduction of criminal liability, it and in the region – up to one casino for exists, is flourishing and in high demand 500 thousand persons. among a large part of the population. It is also necessary to set clear Therefore, legalization and legal requirements for the financial capacity of regulation of this area is necessary, but the organizers of the gambling only under effective state control. In our establishment. This will ensure the opinion, it is better not to forbid what financial stability of the institution and

V. 01 - Nº 01 - Ano 2020 – Special Edition

166 guarantee the ability to pay the winnings. with a special status in the gambling Therefore, the founders should be legal sector regulation under the Ministry of entities that have their registered capital Finance of Ukraine. To do this, it is of at least € 4 million. This capital must necessary to create a Gambling Market be formed without the involvement of Regulation Department and concentrate sponsorships, patrons and credit. The all regulatory functions at the national guarantor of the fair conduct of the level within a single body. This, in turn, gambling business by the organizers of will simplify and make transparent the the institutions should be subject to rigid very process of granting licenses and financial sanctions, penalties and permits to gambling entities, and it will punishments, which will be imposed on enable effective control, within the limits the offender in connection with the of one state body, over the gambling violation of the requirements for companies’ activities. As this body will conducting this type of business. be partially controlled by independent In our opinion, one of the main public bodies, the corruptive component factors in the legal support of the of the body’s activity will be eliminated. gambling business is the creation of an Along with the creation of a effective state control system, and the new body, we believe that it is relevant state institutions should be appropriate to create a new licensing entrusted with a number of functions and system in the gambling market, namely powers, such as the granting of licenses, by increasing their value. This, in turn, the function of controlling the activity will provide a fiscal function, namely, it and observing the rules and regulations will provide a certain barrier to entry of of doing business. In our view, it would “dishonest” companies into the market be advisable to set up two regulatory of gambling services and will provide a bodies, that will exercise control. The way of receiving funds into the budget of first is a state body, and the second is on Ukraine. Licensing will allow to keep a the side of the independent public. register of companies in the gambling However, state control over the market and, based on this number, provision of gambling services should be change the parameters of certain carried out centrally, within one body. licenses. This body should be a structural unit

V. 01 - Nº 01 - Ano 2020 – Special Edition

167 Also, there should be a increased for persons who will open complete ban on gambling in gambling establishments without unauthorized places, namely – in licenses or violated business underground passages, entertaining requirements. The fine should be 2 complexes, restaurants in any other thousand minimum wages, as well as establishments not provided by law, in confiscation of all profits to the State case of violation, the organizers should Budget of Ukraine. In addition to paying be held financially responsible. for the license fee, gambling owners will Compliance with this regulatory be required to pay contributions to the framework and its implementation must state budget, which will be a monthly be shared between a specially authorized additional payment for each slot body, namely the Gambling Market machine. Regulation Department and local In order to exclude any authorities. For example, local executive corruption component in the conduct of bodies should designate places for the gambling business, we propose to gambling establishments that do not introduce an electronic register, which violate the rules of the gambling market will include gambling establishments, law, and the Department should monitor which will be imposed software for the compliance with these rules. control of rates, payment of winnings, We also consider it advisable to from which state taxes will be paid. introduce a mandatory ticket for casino Simply said, we propose to introduce the visitors. The cost of one ticket must be at following gambling system: obtaining a least 100 tax-free minimum incomes of license – entering the gambling in the citizens, which will make it impossible appropriate registry, installing software to access gambling establishments of the for gambling control, which transmits “poor” sections of the population. The data on information on accepted rates, system of taxation of gambling business paid winnings through the Internet to the seems to us of a mixed type, namely: tax Authorized Supervisory Authority – as a on the operating result of the activity of result of taxes paid to the State Budget. a gambling establishment and tax Such a system is sufficiently clear and depending on the amount of gambling transparent to allow the monitoring of equipment (patent). Fines also should be the institution’s activities through an

V. 01 - Nº 01 - Ano 2020 – Special Edition

168 electronic system that eliminates the Singapore in 2010, when gambling was influence of the human factor and legalized in the country. Then in just one prevents corruption. year the state budget was replenished by In the course of our research, $ 5 billion, and tourist visits to the we have come to the conclusion that in country increased to 11 million people a the case of decriminalization, year. Also, the creation of about 8,000 legalization and effective legal jobs could be a social basis for regulation, the sphere of gambling will legalization, enabling the work of the bring considerable income to the country population of the regions and significant and significantly reduce the shadow contributions to social and pension economy. The proposed gambling funds. In addition to payments to the development strategies will move budget, the legalization of bookmaking gambling to a new European level of activities will have a positive impact on development. The adoption of the several areas of life. First and foremost, proposed procedures will also minimize it is the development and promotion of public harm, risks to society and sports. Gaming companies around the vulnerable sections of the population world are sponsoring contracts with from conducting gambling business, well-known sports brands and not-so- create additional jobs and increase popular local teams, organizing and additional revenues to the State Budget sponsoring tournaments of various of Ukraine. levels. This allows the development of sports, creating the necessary conditions Conclusion for this, as well as support state activities Investigating the issues of in this direction. legalization and decriminalization of the Legalizing and decriminalizing gambling business in Ukraine, we can gambling also will serve as an impetus say that in addition to financial prospects for infrastructure development, because and the emergence of an additional the places where people will be allowed source of revenue to the State Budget, it to gamble at the legislative level we is possible to increase the tourist suggest placing in remote cities, where it attractiveness of our country. will be quite perspective to place these Confirmation of this is the experience of establishments, and their placement will

V. 01 - Nº 01 - Ano 2020 – Special Edition

169 bring benefits for the construction of easier for deputies to fill their pockets infrastructure, road pavements, tourism with criminal shadow bribes. business development. As a conclusion, In examining the statistics on it is advisable to emphasize that the conduct of checks on illegal gaming decriminalizing the gambling business establishments, we have noticed that will contribute to the economic these are isolated checks of a development of our country and will demonstrative nature, as most benefit the Ukrainian society by filling establishments start their full work again the state budget, developing after some time. An example of this is infrastructure, tourism and creating new the continued resonance in the media, jobs. The most important lifting of the domestic law enforcement agencies on ban will have a positive effect on open criminal proceedings concerning reducing the level of corruption in the activities of illegal gambling Ukraine. After all, one of the criminal establishments and a large number of financial sources of corruption is the searches conducted with the seizure of gambling business, which brings more equipment, money and computer than $ 5 billion in shadows to corruption equipment. For example, in the last year each year. Only in Kyiv the profits from only, according to the Ministry of the game are about one billion. Internal Affairs, 744 business entities Thus, the profit from gambling illegally providing gambling services is super-profitable, therefore, the were identified and terminated in Kyiv. criminalization of this area and In the course of the criminal proceedings corruption in the bodies that should opened under Article 203-2 of the ensure the detection of institutions that Criminal Code of Ukraine, more than conduct illegal activity is sufficiently 3600 gaming machines, almost 400 developed at all levels of government computers with integrated gaming bodies. The very policy of banning machine simulations, 72 poker tables, 8 gambling has provoked corrupt tables and over 13200 chips practices. Instead of the option of were seized. However, as journalists legalizing the gambling business and later prove in their journalistic filling the state budget with taxes, it is investigations, gambling organizers close criminal proceedings through the

V. 01 - Nº 01 - Ano 2020 – Special Edition

170 court, return the foreclosed property, and allows the bodies called to combat it to subsequently resume their activities after ignore certain entities engaged in such a some time. It is difficult not to mention business. Therefore, we believe that the that in this case there was corruption. legalization and decriminalization of the Analyzing the above mentioned gambling business minimizes corruption statistics, the Kyiv city police on average in the state bodies, regarding the found two or more such illegal gaming “protection racket” of the activity of establishments daily, while working illegal gambling halls, and that criminal without days off and public holidays. shadow money from the gambling And the sheer number of subjects of business goes not into the thieves’ pocket illegal criminal business proves that the but into the state budget in the form of 2009 Law in Ukraine is not actually payment for permits and taxes. being implemented. But to find out is References: only the beginning of the case, it is necessary to document the existence of a Georgian Law “On Gaming Charges” crime, establish the circle of persons No. 4250. (2006). https://matsne.gov.ge/ru/document/view involved in it, take measures to detain /22828. them, conduct a pre-trial investigation and prove the guilt of the organizers of Georgian Law “On Licenses and Permits” No. 1775. (2005). illegal business. It really is a bunch of https://matsne.gov.ge/ru/document/view work, if it is done as it should in all the /26824. rules of criminal procedure law. It seems Georgian Law “On Licensing and that gambling is an invincible hydra, in Permitting Fees” No. 2937 (2003). which two heads grow instead of one http://extwprlegs1.fao.org/docs/pdf/geo severed head. Is that why some people 181475ENG.pdf. are tempted to act on the rule: if you Georgian Law “On the Organization of cannot eliminate the problem, you must Lotteries, Gambling and Profit Games” lead it by taking bribes for illegal acts. No. 1180. (2005). Illegal gambling halls exist https://matsne.gov.ge/ru/document/view /30988?publication=31. outside the law today and are in demand, and if so, it is a corruption factor that, at the expense of the material component,

V. 01 - Nº 01 - Ano 2020 – Special Edition

171 Georgian Tax Code No. 3591. (2010). Law of Ukraine “On Prohibition of https://www.refworld.org.ru/pdfid/548f Gambling in Ukraine”. (2009). 00b54.pdf. https://zakon.rada.gov.ua/laws/show/13 34-17. Harust Yu, Melnyk V, Kiiashko Yu, Halunko V. (2019). Economic crime, Law of Ukraine “On State Regulation of innovative mechanisms of counteraction Gambling Organization and Conduct” by law enforcement agencies. Asia Life No. 2285. (2019). Sciences, 2, 145-162. https://w1.c1.rada.gov.ua/pls/zweb2/we bproc4_1?pf3511=67118. Joint Order of the Minister of Finance and the Minister of Internal Affairs of Legitimate fraud or whoever rips the Georgia “On Approval of the Rules for jackpot in Ukraine. Checking the Exercise of the Permit of http://www.abukr.net/uzakonenij- Gambling and Other Profitable Games obman-abo-hto-zrivaie-dzhek-pot-v- by the Owners” No. 611-1013. (2011). ukrayinii.html. https://feao.org.ua/wp- content/uploads/2016/09/FEAO_Gambl Manzhula A, Harust Y, Myrhorod- ing_A5_04_print.pdf. Karpova V, Sobol Y. (2019). Search for ways to optimize the activities of state Kapitanenko NP. (2013). Gambling as a bodies managing the funds of social phenomenon: historical and legal international technical assistance. Asia aspects. Law of Ukraine, 3, 33-37. Life Sciences, 2, 119-129.

Kovtun YV. (2008). Legal Regulation of Medytskyi IB. (2008). Gameplay as a Gambling Business in Ukraine and background crime (problem statement). Foreign Countries. Kyiv: IHROK, 135. State and Law: a Collection of Scientific Works, 3, 498-504. Kucheriavyi II. (2014). Actual problems of counteraction to gambling in Ukraine. Muliavka DH. (2010). Polish experience Scientific Bulletin of Uzhgorod National in taxing gambling. Scientific Bulletin of University, 26, 208-210. The National University of Ukraine, 49, 142-153. Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Ovcharenko AI. (2018). Legalization of Improvement of the Law on Prohibition gambling on the territory of Ukraine. of Gambling in Ukraine”. (2010). Young Scientist, 4(56), 734-739. https://zakon.rada.gov.ua/laws/show/28 52-17. Prykhodko DS. (2008). Legislative issues and some solutions to counteract crime in the field of gaming. Scientific

V. 01 - Nº 01 - Ano 2020 – Special Edition

172 Bulletin of Dnipropetrovsk State University of Internal Affairs, 4(40), 350-358.

Riabchuk SV. (2018). Criminological characteristics and prevention of gambling. Kharkiv: National Academy of Legal Sciences of Ukraine, 225.

Rukhliadin V, Stetsenko I. (2011). State and prospects of gambling business development. Economy, 3(110), 47-49.

Serhiienko IV, Fomina IY, Khorolskyi RB. (2015). Legal regulation of gambling: European experience, practice in post-Soviet countries, prospects of Ukraine. Kyiv: “Fomin, Sergienko & Partners” Law Firm, 136