Ukraine Gambling Moves to Online Casinos to Circumvent Gaming Ban

A loophole in Ukraine's law against gambling has allowed casinos to convert to Internet cafes offering connection to online casinos, and law enforcement refuses to adopt US methods and pretend law exists where it does not.

The implementation of a nationwide gambling ban in Ukraine caused a scramble by the hundreds of casinos and thousands of workers employed in gaming to find methods to continue operations. Conversion to poker rooms was quickly met by declaration that poker is included in the ban, and movement out of the country left workers and gamblers stuck, but a new loophole has allowed gambling to return as Internet clubs.

Servers for online casinos are set up outside the country, and locales accepting bets become simply Internet access agents, selling Internet time and collecting a percentage of whatever is bet from their establishments. The loophole allows the clubs to operate legally and openly.

The operations are still running with one eye toward law enforcement. Clubs do not carry signage, and the names of the gaming establishments and those who work there are guarded.

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

Or the government could follow the US example, and act as if a law against online casinos already exists without ever passing one. But apparently, Ukrainian authorities are loath to disregard the law as the US Department of Justice does.

“We will solve this problem by legislation as soon as this is possible,” said Valeriy Pysarenko, one of the legislators responsible for the gambling ban.