Ukraine Gambling Ban Has Online Casino Loophole

September 23, 2009 | News Category: Gaming Law

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The Ukraine has recently implemented a nationwide gambling ban. The thousands of casino employees who were employed by the hundreds of Ukrainian casinos looked for a loophole in order to continue operations. Although there would not be enough employment for all, a loophole was found.

Online casinos that are operated from outside of the Ukraine are not considered illegal, and Ukrainians may gamble in these online casinos. It is unclear as to whether this will last for long or not, but for now online casinos have provided the answer to the Ukrainian casino world's problems.

First, land-based casinos attempted to convert their operations to poker rooms, however, this solution was short-lived since it was declared soon after this that poker formed part of the casino ban. Online casinos did not form part of the ban, and therein lay the answer for the casino operators.

Internet clubs have been set up in numerous locations. Internet clubs are essentially online casinos that are played out of Internet cafes. The servers for the online casinos are set up outside the Ukraine. The ex-online casino operators now act as Internet access agents. They sell online time to those who wish to gamble online, and also take a percentage of the money that has been bet from their Internet club.

Since the Ukraine is only enforcing laws that are actually laws, unlike the United States Department of Justice that attempts to extend the existing laws into laws that do not exist on the law books, the Internet clubs are not considered to be illegal. The clubs can therefore operate openly and legally. Of course, so as not to antagonize law enforcement departments, the casino Internet clubs keep a low profile. They do not display signs, and the names of the establishments are guarded, as are the names of those who work for them.

A Ukrainian gaming lawyer, Danylo Getmantsev told the Kyiv Post that "In order to ban such practices, Internet gambling would have to be outlawed or a legal precedent set in the High Court."

Although the operators of the Internet clubs are concerned about the possibility of the law changing, at least they know that it will happen legally and on the books if it does so. They should have a little warning if the law does change, as legislator, Valeriy Pysarenko, is working towards.

Valeriy Pysarenko is one of the legislators that has been responsible for the ban on gambling. "We will solve this problem by legislation as soon as possible," said Pysarenko.