Ukraine's Quest to Eliminate Russian Influence in Gambling: A U.S.-Inspired Strategy
Subtitle: Drawing Parallels to the Fight Against Italian Mafia in Las Vegas
Read the full article on The GuardianUkrainian authorities are determined to combat Russian influence in their gambling industry using a strategy inspired by American methods, just as U.S. law enforcement and officials once ousted the Italian mafia from Las Vegas casinos, according to an article by The Guardian.
Elena Vodolazhko, a member of Ukraine's Gambling and Lotteries Regulatory Commission (KRAIL), revealed that the regulator had received an invitation from the U.S. Gaming Control Board in Nevada to discuss reforming the Ukrainian system and eliminating Russian influence. She emphasized the importance of American regulators, citing their experience in dealing with challenges like the mafia or external influences.
The 2020 law legalizing gambling in Ukraine allowed for the opening of casinos and slot machine halls in hotels, as well as the introduction of online gambling and betting. KRAIL was established as the regulatory body with advisory and consultative roles. However, Russian gambling organizations and legal advisers linked to oligarchs quickly moved into Ukraine.
Accusations of ongoing Russian influence in the industry emerged after the invasion, resulting in the resignation of Boris Baum, head of an advisory body to the regulator, in July 2022. He left the country, reportedly relocating to Cyprus, following media reports that he had attempted to help a company with Russian connections obtain a gambling license.
The Italian Mafia played a significant role in the development of casinos and hotels in Las Vegas, but the turning point came in the 1970s when the FBI, along with regulators, initiated investigations into organized crime's involvement in the business.
Vodolazhko stressed that the primary goal is to reduce opportunities for money laundering by reforming systems for collecting and analyzing currency movements. She warned that if Russians maintain influence over their gaming or other industries, it could pose a significant threat to Ukraine's interests. There have been media reports suggesting that several current operators in the gambling market have ties with Russians.
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