The Ukrainian government has introduced a new state agency, PlayCity, to oversee and implement gambling policy following the dissolution of the previous gambling regulator amid allegations of corruption and potential links to Russian-affiliated online casinos. This development marks a pivotal step towards ushering in a more transparent and consumer-focused industry.

The New Authority Should Seamlessly Take Over from KRAIL

Ukraine’s Cabinet of Ministers has formally approved the establishment of PlayCity, which will now enforce gambling and lottery regulations in the nation. The new authority will function as a central executive body under the supervision of the Ministry of Digital Transformation. Such direct oversight will ensure that PlayCity’s actions closely align with the government’s other gambling reforms.

The Ukrainian government has stressed that the main goals of PlayCity will be to digitize the gambling licensing process and to implement stringent market oversight to curb illicit gambling activities. The latter goal is especially pressing considering the prevalence of black market operators that hemorrhage vital resources from the country while offering minimal consumer protections.

The state loses up to UAH 10 billion due to the shadow market. Digitalization of this sector will help eliminate corruption, make the market more transparent, and increase budget revenues.
Ministry of Digital Transformation statement

PlayCity will leverage 2025 financing previously meant for the now-defunct Commission for the Regulation of Gambling and Lotteries (KRAIL). The new body will employ 61 individuals, roughly equivalent to the positions eliminated from the previous regulator. PlayCity will also occupy the same premises, easing the transition process. The following steps for the regulator include appointing a director and establishing operational guidelines.

Ukraine Is Steadily Modernizing Its Gambling Legislation

The launch of PlayCity marks another milestone in Ukraine’s ongoing efforts to modernize its gambling legislation. The nation is poised to launch its stricter gambling advertisement restrictions that will become effective on 1 April. Key provisions include a ban on marketing materials targeting individuals under 21 and a prohibition of military personnel featuring in gambling ads.

Ukraine is also strengthening financial oversight over the gambling sector. New regulations mandate that all gambling-related translations must pass through traditional banks, effectively prohibiting other payment methods like cryptocurrencies. This measure should substantially enhance transparency, mitigate gambling-related harm, and prevent illegal financial activities.

With PlayCity set to take the reins of gambling regulation, Ukraine plans to foster a more transparent and accountable gambling sector. As the agency gets to work, the success of these reforms will be closely monitored, particularly in ensuring compliance and tackling illegal gambling activities, especially those connected to Russian companies.