Ukraine gambling regulator PlayCity issues 250 licences, collects $12.8 million in first year

Ukraine's gambling regulator PlayCity issued 250 licences and generated more than ₴569 million ($12.8 million) in licence fees during its first year of operations after replacing the country's previous regulator, KRAIL, according to its inaugural annual report.

Licence fees were paid directly into the state budget and included 11 licences issued to gambling operators, three to lottery operators and 213 to gaming equipment suppliers.

Lottery operators contributed approximately ₴72 million ($1.62 million) in licence fees, with momentum continuing into the current year, as tax revenues from licensed lottery operators exceeded ₴74 million in the first quarter of 2026.

Tax revenues from gambling operators reached an estimated ₴14 billion over the past year, alongside around ₴2 billion collected in personal income tax linked to the sector.

PlayCity also stepped up enforcement efforts against illegal gambling, imposing more than ₴988 million in fines for gambling law violations and approximately ₴80 million in penalties for breaches of advertising regulations.

As part of its enforcement campaign, the regulator blocked more than 4,100 illegal gambling websites and over 700 social media accounts associated with unlicensed gambling advertisements. It also launched an online complaints system to speed up public reporting of illegal gambling advertising.

The regulator reduced the time required to block illegal websites to as little as one day.

Following the reinstatement of mandatory reporting requirements, PlayCity reported full compliance from gambling operators and conducted seven planned and four unplanned inspections.

In cooperation with Ukraine's Ministry of Digital Transformation, PlayCity connected 11 operators to the State Online Gambling Monitoring system, or DSOM, a centralised platform that records betting transactions, payouts and returns in near real time.

The regulator also launched a digital licensing process through the government's Diia portal and continued efforts to centralise industry data through gambling operator and gaming equipment registers.

"This year was about creating infrastructure that the state actually did not have. We are building data-driven regulation – a model in which decisions are made based on data," PlayCity Head Gennedy Novikov said.

"For such a dynamic market, this is critical. The state should not catch up with problems, but see risks before they become a crisis," he added.

Responsible gambling measures remained a priority, with the agency processing more than 3,000 requests for gambling restrictions in 2026 and introducing a register of people with gambling addiction.

The regulator also implemented financial and time limits on gambling activity and worked with government ministries to prevent military personnel from accessing gambling services through automated monitoring systems.

Looking ahead, PlayCity plans to expand DSOM, integrate military and restricted-access registers, strengthen risk-based supervision and continue efforts to reduce illegal gambling and related advertising.

Draft amendments to Ukraine's Tax Code, Gambling Law and Lottery Law have been submitted to parliament for consideration.