PlayCity Completes First Year as National Regulator
Ukraine’s gambling regulator PlayCity, working with the Ministry of Digital Transformation, has completed its first year of operations, reporting progress in licensing, tax collection and enforcement.
The report, published on Monday, is the first since PlayCity replaced KRAIL as the country’s gambling regulator.
Over the past year, PlayCity said it issued 250 licences in total, generating more than ₴569 million ($12.8 million) in fees paid directly into the state budget.
The breakdown includes 11 licences for gambling operators, three for lottery operators and 213 for suppliers of gaming equipment.
Licensing Revenue and Tax Collection
Licence fees from the three lottery operators alone contributed around ₴72 million ($1.62 million). This is notable because the lottery market had previously been suspended for more than a decade.
Tax revenues from licensed lottery operators exceeded ₴74 million in the first quarter of 2026 alone.
Tax revenues from gambling organisers reached an estimated ₴14 billion, complemented by around ₴2 billion collected in personal income tax linked to the gambling sector.
Enforcement Against Illegal Gambling and Advertising
PlayCity spent much of the past year pursuing enforcement actions against illegal gambling activity. Fines in excess of ₴988 million were imposed on gambling organisers for legal violations, alongside roughly ₴80 million in penalties for breaches of advertising regulations.
Last month, the regulator launched an online complaints system designed to speed up public reporting of illegal gambling advertising. Advertisements found to be illegal may be removed, accounts blocked or subject to heavy fines. The statutory administrative fine for illegal gambling advertising in 2026 is set at ₴5,188,200.
A major part of the enforcement drive has been the blocking of more than 4,100 illegal gambling websites and over 700 social media accounts linked to unlicensed gambling advertising.
The duration for website blocking has been reduced to as little as one day, allowing the regulator to respond more quickly.
Compliance, Inspections and Data Registers
After reinstating mandatory reporting from gambling operators, the regulator said it achieved a reported 100% compliance rate in the last year. For the first time, lottery operators are now required to submit reports.
With scheduled inspections resuming after the moratorium, the agency carried out seven planned and four unplanned inspections in 2026.
Efforts to centralise data have included the development and population of gambling registers for operators and gaming equipment to support better oversight.
DSOM Monitoring Platform
The agency, together with the Ministry of Digital Transformation, prepared technical requirements and connected 11 operators to the newly developed State Online Gambling Monitoring system (DSOM).
DSOM is a centralised transaction-monitoring platform designed to capture and consolidate betting activity across Ukraine’s regulated gambling market in near-real time. It records key actions including payouts, returns and bets placed.
In the annual report, PlayCity head Gennedy Novikov said the year had focused on building infrastructure the state previously lacked. He described the approach as data-driven regulation, adding that for a dynamic market it was important for the state to identify risks before they become crises.
Beyond DSOM, PlayCity has launched a digital licensing pathway via the government’s Diia portal to streamline permit issuance. Updates to licence terms were introduced following open competitions, signalling a move towards more competitive and transparent market participation.
Social Harm Mitigation Measures
Protective measures against gambling-related harm have been another focus area. The agency reported responding to more than 3,000 requests for gambling restrictions in 2026 and introduced a new register of persons with gaming addiction as part of its harm reduction strategy.
In partnership with the Ministry of Digital Economy, it introduced financial and time limits on gambling activities.
PlayCity also approved Principles of Responsible Gaming and cooperated with the Ministry of Defence and Ministry of Digital Affairs to prevent military personnel from participating in gambling.
These restrictions take the form of automated mechanisms that monitor log-in attempts and cross-reference military personnel rosters and lists of barred individuals. If a match indicating restricted status is detected, access to online gambling services is automatically blocked.
Research into the social impacts of gambling has also been initiated to guide ongoing policy development.
Regulatory Reform and Legislative Updates
The agency oversaw the adoption of 13 government resolutions aimed at market reform and issued ten ministry orders covering regulatory areas including premises permits, reporting frameworks, the establishment of unique player identifiers and rules governing gaming equipment connections to DSOM.
Draft amendments to key laws, the Tax Code, the Gambling Law and the Lottery Law, have been prepared and reportedly submitted to the Ukrainian parliament for consideration.
Next Steps for PlayCity
Looking ahead, PlayCity outlined plans to expand DSOM to a second stage and integrate the military register with its restricted-access register. The agency intends to renew online lottery control systems, implement risk-based supervision and finalise key legal amendments.
Upcoming milestones include parliamentary ratification of proposed legislative changes and full operational implementation of DSOM across all operators. PlayCity also aims to achieve a measurable reduction in illegal gambling and related advertising.
For market participants, the direction points to a more closely supervised gambling environment with greater digital integration and stronger enforcement, alongside increased compliance costs for operators seeking to remain active in the licensed market.