Ukraine’s new gambling regulator, PlayCity, has completed its inaugural year, issuing 250 licenses and bringing in ₴569 million ($12.8 million) in license fees. Replacing the former KRAIL, PlayCity now oversees gambling operations with the Ministry of Digital Transformation. Notably, 11 licenses were awarded to gambling operators, three to lottery operators, and 213 to gaming equipment suppliers. And lottery operators alone contributed ₴72 million ($1.62 million) in fees, marking the market’s return after a decade-long suspension.
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Enforcement Against Illegal Operations
In its enforcement drive, PlayCity has focused on illegal gambling activities, imposing fines exceeding ₴988 million for violations. Another ₴80 million in penalties was levied for breaches in advertising regulations. The regulator introduced an online complaints system for reporting illegal gambling ads, promising hefty fines or account blocks for offenders. The fine for illegal gambling advertising currently stands at ₴5,188,200. A swift move has been the blocking of over 4,100 illegal gambling websites and more than 700 related social media accounts. Still, playCity claims a notable reduction in the time required to block offending sites, now just a day in some cases. Still, following the reinstatement of mandatory reporting, a 100% compliance rate was achieved last year.
New Systems and Data Integration
PlayCity, with support from the Ministry of Digital Transformation, developed the State Online Gambling Monitoring system (DSOM), linking 11 operators to monitor betting activities in real time. This centralized platform tracks key actions, paving the way for data-driven regulation in Ukraine’s dynamic market. As Gennedy Novikov, PlayCity’s head, noted, “We are building data-driven regulation — a model in which decisions are made based on data.”
Complementing DSOM, a digital licensing pathway via the government’s Diia portal has been launched, streamlining permit issuance. PlayCity is also pushing for transparency through open competitions for licenses, aiming for more competitive market participation.
Addressing Social Harm
Social harm mitigation was another critical focus for PlayCity. The agency handled over 3,000 requests for gambling restrictions and established a register for individuals with gaming addiction. In cooperation with the Ministry of Digital Economy, financial and time limits on gambling activities were introduced. Notably, measures have been put in place to prevent military personnel from gambling, with automated systems checking players against military rosters. Research into gambling’s social impacts has started, aiming to guide policy development. PlayCity executed 13 government resolutions for market reform and issued ten orders on regulatory matters, including unique player identifiers and rules for DSOM connections. Draft amendments to the Tax Code, Gambling Law, and Lottery Law have been submitted to parliament.
Looking Forward
PlayCity aims to expand DSOM and integrate military registers with restricted-access lists in its next phase. Renewing online lottery control systems and implementing risk-based supervision are on the agenda, pending legislative ratification. The overarching goal is a more regulated gambling environment with digital integration and rigorous enforcement. Market players should prepare for tighter oversight and major compliance demands. The Ukrainian parliament is set to review the proposed changes, and PlayCity’s focus remains on reducing illegal gambling activities.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
