Ukraine.- The Ministry of Digital Transformation has announced that the newly established national gambling regulator, PlayCity, has initiated a competitive tender process for licences to operate lotteries across Ukraine. This development aims to regulate a sector that has remained largely unregulated for years and bring it under the formal oversight of PlayCity.
This move follows PlayCity’s recent activity in issuing gambling licences as part of a broader restructuring of Ukraine’s gambling sector. In September, the regulator released a draft proposal for the lottery tender, which detailed an ambitious goal of generating UAH 10 billion (€207 million) annually in licensing fees. These funds are intended to bolster the nation’s defence budget, especially significant amid the ongoing conflict with Russia.
In late November, the Cabinet of Ministers gave its approval to the proposal, setting the stage for the first lottery tender in Ukraine in over ten years. The reformation of gambling laws began in 2020 when Ukraine lifted a gambling ban that had been in place since a tragic fire at a gaming hall in 2009. While lotteries remained operational during this ban, they were described by the government as existing in a “grey area,” functioning without official licences and with minimal tax regulation.
This regulatory gap was largely due to the sanctioned departure of former operators MSL and Patriot, who were embroiled in corruption scandals and accused of laundering money with Russian affiliates. Their exit in 2015 left the Ukrainian lottery market void of formal licensees.
Under the newly established regulations, only licensed operators will be permitted to run lotteries. These operators are required to implement electronic reporting systems and real-time monitoring for ticket sales and payouts. Furthermore, all lottery tickets and terminals must feature unique QR codes to confirm their authenticity and compliance with legal standards.
PlayCity has reached out to Ukrainian companies, particularly those with international experience in the gaming industry, to apply for these licences. To qualify, applicants must meet specific criteria, including:
– At least three years of operational experience in the lottery or gaming industry
– A website registered with a .ua domain
– A minimum authorised capital of UAH 30 million (approximately €600,000)
– No direct or indirect ties to Russian entities
Applications for the lottery licences are due by December 29. PlayCity has committed to announcing the successful candidates within 15 business days following the submission deadline. Winners will then have a 10-day window to finalise their licences and complete any necessary fee payments.
Deputy Minister Natalia Denikeeva emphasized that this initiative represents a comprehensive reset for the Ukrainian lottery industry. She noted, “The time for us to start a market where the initial conditions are the same for all is finally here. A competitive environment will be established around, in which old schemes will no longer win, but quality, technology and compliance with the law.” She further articulated that this marks a fresh starting point for the sector, assuring players that every ticket, draw, and payout would now be verified, legal, and secure.
PlayCity took over from KRAIL as Ukraine’s gambling regulatory body in June. Under the leadership of Hennadiy Novikov, PlayCity’s mandate includes the establishment of a new national monitoring system for gaming activities across the country.
However, not everyone is convinced that the overhaul will lead to a perfectly transparent market. Some industry insiders express concern that while the regulatory framework appears robust on paper, the practical enforcement of these regulations will be critical. They caution that without stringent oversight, the reformed market could still fall prey to the same issues of corruption and malpractice that plagued it in the past.
Moreover, the international gaming community is keeping a close watch on Ukraine’s progress. The sector’s reformation is seen as a vital step not only in promoting fair play but also in demonstrating Ukraine’s commitment to aligning with international standards. Compliance with these standards is crucial as Ukraine seeks to attract foreign investment and rebuild its economy in a post-conflict landscape.
The new licensing regime presents a golden opportunity for companies looking to enter or expand within the Ukrainian market. With the potential for generating significant revenue and contributing to national causes, the stakes are high for PlayCity to implement a system that is both fair and efficient. As the tender process unfolds, industry observers and potential licensees alike will be watching closely to see if Ukraine can indeed turn a new leaf in its lottery sector.
David Garato is a luminary in gaming journalism, renowned for peeling back the curtain on the gaming world with his witty and insightful commentary. A decade into weaving stories from the pixelated edges of indie games to the expansive universes of AAA titles, David’s work is a thrilling blend of analysis and adventure. When not writing, he’s live-streaming, sharing his gaming exploits with an engaged and growing audience. David doesn’t just write about games; he lives them, making him a trusted guide in the gaming community.
