Ukraine’s Ministry of Digital Transformation has confirmed that the new gambling regulator, PlayCity, is now operational. Its initial priorities include digitising the licensing process, launching a national monitoring system, tackling illegal gambling establishments, and resuming regulation of the lottery market, while also aiming to eradicate gambling operations with ties to Russia. This move signifies a determined effort to bring transparency and accountability to Ukraine’s gambling sector.

PlayCity’s responsibilities extend to relaunching the problem gamblers register by integrating it into the government’s web portal and mobile app, Diia.Engine. This integration will enable players to submit self-exclusion requests directly via the Diia app, enhancing accessibility for responsible gaming tools. A significant objective for the new agency is to specifically eradicate gambling operations with ties to Russia from the Ukrainian market.

The Ministry of Digital Transformation stated, as reported by iGaming Times, that “The State Agency PlayCity is now operational. Its goal is to make the gambling and lottery market transparent and accountable.” The Ministry further explained, as reported by iGaming Times, that PlayCity was established to replace the “ineffective” Commission for the Regulation of Gambling and Lotteries (KRAIL). The Ministry also noted, as reported by iGaming Times, that “Currently, the lottery business is operating without licensing requirements, which means it doesn’t pay license fees and isn’t subject to government oversight.” It added, as reported by iGaming Times, that “Every year, the national budget loses up to UAH 10 billion (€211.2m) in taxes due to the shadow gambling and lottery market,” and that “Bringing this sector out of the shadows will generate a significant boost in tax revenues, which can then be directed toward strengthening the country’s defense.”

Replacing the Former Regulator: Reasons and New Leadership

The new state agency is headed by Hennadiy Novikov, a lawyer with public administration experience. He previously served as deputy head of the former KRAIL and supported the Ministry of Digital Transformation’s vision for dismantling the previous regulator. In his previous role, Novikov reportedly initiated the process of blocking illegal online casinos and facilitated inspections of gambling operators for legal compliance, according to the Ministry.

The Cabinet of Ministers established PlayCity in March 2025 and named Novikov as its director on April 8. Last month (May 2025), the Cabinet endorsed new powers for the body. The new regulator will have the authority to request the application of restrictions against unlicensed gambling websites and mobile applications. It will also be able to issue recommendations for gambling operators regarding responsible gaming practices. PlayCity is also expected to implement time limits and mandatory breaks, requiring operators to interrupt customer play with scheduled pauses to prevent players from engaging in continuous gaming beyond a specified daily threshold. Players must also be allowed to set voluntary personal spending limits for gambling on a per day, per week, or per month basis, with the ability to change these limits no more than once every 30 days. The new regulator will work under Deputy Prime Minister Mykhailo Fedorov and has a brief to protect Ukrainian gambling licensees and consumers from corruption.

The government decided to disband KRAIL due to several issues. The former regulator had reportedly struggled to operate effectively during the war with Russia, partly because of its collegial structure comprising a chairman and six members. KRAIL also faced criticism for allegedly weak regulatory enforcement, tax uncertainties, and the widespread presence of illegal gambling operators in Ukraine, some of whom reportedly had ties to Russia. In a notable development, the State Bureau of Investigation (SBI) announced in December 2024 that it had detained KRAIL’s former director, Ivan Rudyi, for allegedly supporting the operations of a Russian-owned online casino in the country, as well as on narcotics charges. He has been denied bail.

Broader Industry Context

Providing broader industry context, Russia’s lower house, the State Duma, has approved the first reading of a bill that would introduce a national gambling self-exclusion programme. This initiative would allow individuals to voluntarily enrol via the state services portal to exclude themselves from placing bets at casinos and bookmakers for a minimum period of 12 months.

In conclusion, PlayCity’s operational launch signals a determined effort by Ukraine to bring transparency and accountability to its gambling and lottery markets, combat illegal operations (especially those with Russian ties), and enhance player protection. This strategic step is aimed at bolstering state revenues, which can be directed towards strengthening the country’s defense, and generally solidifying the regulated sector’s integrity and effectiveness.