This week, the Ukrainian parliament has passed a law banning the gambling businesses. The bill restricts gambling, but will allow casino owners to operate their business within the gambling zones assigned by the government. This was all because of the May 7th incident.
It was early Thursday, the 7th day of May this year, when Metro Jack Pot arcade in Dnepropetrosvk (eastern part of Ukraine) was shaken by a devastating blast. Ten people were killed and some were injured due to the fire caused by an explosion of a slot machine. 57 firefighters joined the rescue operation to put out the fire & were successfully doing so at around 01:40 a.m. (local time). According to the local news, the arcade was engulfed in thick smoke making it difficult for the people to flee from the building.
Casinos in neighboring Ukraine also will close their doors when the gambling law takes effect. Lawmakers firmly stand that the actions were necessary to control gambling addiction and underhanded industry.
Ukraine statistics have shown a troubling fact that 75% of the gambling populations are high school kids and university students, and 5% of the total population is considered addicts. Last May, Pollster FOM-Ukraine conducted another survey and found out that 46% of Ukrainians believe that gambling breaks up families, 44% associate it with crime and 55% thinks that it leads to addiction for adults.
Some political analysts remarked that up to 60% to 70% of the gambling establishments are illegal due to a lenient legislation they have. Only 2% of the actual industry worth of $5 billion per annum made it to the government budget. Supporters of the new law, like the author Valeriy Pysarenko, stated that “Gambling is like an epidemic which can be compared with AIDS and tuberculosis and one parliamentary deputy firmly believes that since the collapse of the Soviet Union in 1991 Ukrainians moral level started to diminish due gambling”.
But for all its noble purpose, the law has important and heavy criticism. Critics say that the law will leave thousands of people out of work and force the industry underground.
Unemployment Due to the Ban
The bright halls that used to shine and jam-packed with casino aficionados are now deserted. It is estimated that 200,000 Ukrainians & 400,000 Russians will be put out of work. A large number of casino employees will be unemployed because of the new law, which was set to take effect on the 1st of July. But the impact does not stop there; more jobs will close for slot machines and bookmakers.
A Risk Because of the Ban
A tighter regulation will send the gambling industry underground where it will be even harder for the government to control. A reliable source from the same industry asked not to be named, has disclosed that he knows two places that have been operating illegally since the law took effect. The Ukrainian government officials also expect that more and more sites will start operating underground in the coming days. Ian Payne, the director of operations at the River Palace (one of the most popular casinos in Kiev) said that with the new law set, it is almost inevitable that establishments will reopen, only to be ran by criminal groups.
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