South Korean model is the best way to develop gambling business in Ukraine
The Login Casino editorial team spoke with economist Alexey Kushch about his vision of the prospects for legalizing the gambling business in Ukraine.
If we look at the example of other countries where the gambling business is successfully developing, regulated and generating income, whose regulatory model could become an example for Ukraine?
No, Georgia cannot be an example for us, because this aspect is very simplified there from the point of view of the economic profile. That is, it is a small country, which is practically devoid of industry, with a small population. In fact, it is itself a large cluster of services. There was no alternative path of development in Georgia. The government of the country simplifies the legislation regarding this sphere as much as possible.
Ukraine has a more complex economic terrain. It will not be able to turn into one big gambling zone, for example. We have two options: for example, legalization of gambling business on a countrywide scale, as the Belarusians did. However, for this it is necessary to have a sufficiently strong vertical of power, or strong state and public institutions that would ensure legal regulation of business. We have neither the first nor the second. We cannot provide any level of legal protection on a countrywide scale and we cannot ensure the implementation of social filters.
Therefore, the best option is to create gambling zones. In this regard, we need to consider the South Korean model. This country is a bit like us, but has its own local characteristics. What I like about South Korea is the ability to combine the country's industrial development, the service sector, and at the same time the development of innovation, science, education, and gambling zones. That is, all this is adjacent and does not conflict, but, on the contrary, unites with each other and as a result leads to dynamic growth and compliance with high standards. We see that in the South Korean model, cluster gambling zones are one of the main growth points of the national economy, capitalization. They do not negatively affect society. At the same time, they are a kind of magnet that enhances the tourist and investment attractiveness of the country.
Do you think a completely new bill will be written? Or will the legislation be formed from previously proposed documents with some amendments?
I think there will be an attempt to develop legislation taking into account existing documents, but the concept will be new. For now, I am pessimistic about its effective implementation in the near future, because it is important to provide for all aspects. We should not again come to the business model where many illegal gambling establishments operate under the guise of lotteries. If we want to obtain dynamic points of capitalization of the economy, if we want to receive not only direct income from the gambling business, but also related income from indirect sources related to this market, if we want to develop auxiliary sectors of the economy and come to dynamic indicators, then we need to very qualitatively develop the concept itself. After that, it should be discussed with systemic international developers. As a result of this dialogue, it will be possible to discuss points of our competitive advantage in comparison with neighbors who are already developing the gambling business.
If we are talking about serious development of a business that would bring significant money to the state budget, then if at least one or two foreign developers do not enter the territory of Ukraine, then it is premature to talk about the successful implementation of this concept. First, we need to hold a quality conference on the development of the gambling business in Odessa. Invite investors and international consultants there. Such an event is necessary in order to show the country's capabilities, as well as the directions in which this can develop. I see that now there is an attempt to make a quick decision and an emphasis on the fact that within the country there are some political groups of influence that have gained power, who have free resources and who themselves would like to develop this business.
Do you think the law will be passed in the fall?
Yes, I am sure 100% will accept it.
