Legislator Danylo Hetmantsev, head of the Ukrainian parliament’s Committee on Finance, Tax and Customs Policy, is pushing for large changes in the country’s gambling oversight. He advocates for an open competition to appoint the new head of Ukraine’s gambling regulator, PlayCity, and suggests involving the National Anti-Corruption Bureau of Ukraine (NABU) in the process. Hetmantsev hasn’t ruled out potential changes to tax policies once certain systems are in place.
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Hetmantsev’s Concerns with Current System
Speaking to Interfax-Ukraine, Hetmantsev emphasized the urgency of implementing reforms. He sees the full launch of the new state online monitoring system for gambling (DSOM) as a critical first step if there’s a leadership change at PlayCity. “DSOM must be launched, and then I don’t rule out that the question of changing the formula for taxing winnings will be appropriate,” he noted. Currently, taxation improvements hinge on gathering reliable data—a problem given the authorities’ limited access to payout details. Hetmantsev’s proposals reflect growing concerns about the effectiveness of current regulatory frameworks. Industry insiders are aware this isn’t the first time Ukraine’s gambling sector has faced scrutiny over data transparency issues.
DSOM’s Test Phase and Future Implications
In May, PlayCity announced that DSOM was live on a trial basis, with 11 gambling operators connected and others on the way. And the system promises broad monitoring of the gambling sector, allowing PlayCity to track all transactions in the regulated market. DSOM features internal and external components, offering different levels of access to state authorities and gambling operators, respectively. PlayCity’s shift under the Prime Minister’s coordination ends its previous alignment with the Minister of Digital Transformation. The move could signal a change in how Ukraine manages its gambling oversight, although it’s unclear what immediate impacts—if any—this might have.
Uncertainty Over Future Tax Reforms
Taxation reforms, as per Hetmantsev, remain contingent on DSOM’s successful implementation. The lack of reliable data has historically hampered efforts to revise tax formulas effectively. Only after DSOM fully operationalizes, Hetmantsev suggests, will the government revisit these policies. But the suggestion for a fresh competition in Ukraine’s lottery market also adds another layer of uncertainty. Whether this heralds a broader shift remains an open question.
Next Steps in Regulatory Overhaul
PlayCity has proposed a new selection procedure for its head. It’s now under review whether these suggested reforms will be enacted, with legislative and executive branches weighing in. The regulatory market is poised for potential shifts as stakeholders continue discussions. And a decision on the future leader of PlayCity and possible tax reforms is likely by the end of the year.
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.
