V. 01 - Nº 01 - Ano 2020 – Special Edition 156 DECRIMINALIZATION OF GAMBLING IN UKRAINE: 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 Verkhovna Rada of Ukraine on May 15, lords. Not every state has natural 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 casinos, 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, lotteries etc. Interestingly, the methodical literature on the given issue, casino 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