Ukraine shuts down 133 illegal online casinos in joint crackdown on gambling black market

Ukrainian authorities have blocked 133 illegal online casinos as part of a sweeping effort to curb the country’s black gambling market, which officials say continues to siphon off millions in untaxed revenues and pose risks to player security.

The coordinated operation brought together the Security Service of Ukraine, the State Service of Special Communications and Information Protection (Derzhspetszviazok), the National Commission for the State Regulation of Electronic Communications (NCEC), and the recently established Association of Ukrainian Gambling Operators (AUGO).

According to a statement issued by AUGO on Tuesday, the crackdown followed Directive No. 435/3236 from Derzhspetszviazok on July 1. The directive instructed internet service providers and industry associations to block specified IP addresses and websites engaged in unauthorized gambling operations. Compliance was required by July 8.

The association estimates that the action disrupted a hidden sector generating between UAH 3 billion ($72 million) and UAH 5 billion ($120 million) in illegal turnover each quarter. In addition to blocking access to websites, the operation also froze related peer-to-peer transactions and shut down unlicensed financial processing channels supporting these platforms.

AUGO President Oleksandr Kohut likened the campaign to chess: “In chess terms – white has made the first move, and black is already losing pieces on the board… No, we're not grandmasters yet. But this will be a decisive chess match, and we're convinced the illegal players will eventually have no choice but to leave the game.”

Many of the blocked sites have ties to Russia and represent risks not only to the Ukrainian economy but also to individual players through potential fraud and breaches of personal data, authorities say. Kohut stressed that such illegal operators directly undermine legitimate businesses and state revenues.

This marks the first time that Ukraine’s security agencies and communications regulators have formally teamed up with AUGO on a campaign of this scale. AUGO, created just three months ago, provided technical expertise and analytical support to aid in identifying and dismantling the networks behind the illegal operations.

The group plans to deepen cooperation with national regulators, including the Ministry of Digital Transformation and the new PlayCity agency, to detect and remove illicit gambling sites more quickly.

Under recent legislative changes, Ukraine’s policy on gambling has come under the purview of the Ministry of Digital Transformation, which has prioritized cleaning up the online market. In March, the government approved the launch of PlayCity, which officially took over from the former Commission for the Regulation of Gambling and Lotteries (CRGL) in April.

By late June, with backing from AUGO, PlayCity had already submitted a list to the NCEC requesting the blocking of 824 illegal sites.

The stakes remain high. According to AUGO estimates from May, up to half of Ukraine’s gambling activity continues outside the legal framework. The Ministry of Digital Transformation calculates the resulting annual losses to state coffers at around UAH 10 billion ($240 million). 

Meanwhile, Ukraine’s licensed gambling sector contributed over UAH 17 billion ($410 million) in taxes last year and UAH 6.4 billion ($150 million) in the first four months of 2025.