Ukraine gambling regulator marks one year of operations
- PlayCity has issued 250 licences in its first year as Ukraine’s new state gambling regulator, with gambling licence payments totalling about ₴2bn ($45.1m) and lottery licence payments exceeding ₴72m ($1.6m).
- The agency blocked more than 4,100 illegal gambling websites and imposed over ₴988m ($22.3m) in fines on gambling organisers for regulatory violations.
- The lottery market has been relicensed for the first time in over 12 years, with three operators now active and contributing over ₴74m ($1.7m) in tax revenue in Q1 2026 alone.
Ukraine’s gambling regulator PlayCity has published a first-year activity summary, marking one year since it began work as the new state regulator for gambling and lotteries.
Operating in partnership with the Ministry of Digital Transformation, the agency reports progress across licensing, enforcement, player protection and market digitalisation.
Licensing and revenue
PlayCity issued 250 licences across its first year of operations, covering gambling operators, B2B suppliers of gaming equipment and lottery operators. Gambling licence payments totalled about ₴2bn ($45.1m), with lottery licence payments contributing a further ₴72m ($1.6m) to the state budget.
Gambling organisers contributed an estimated ₴14bn ($315.4m) in tax revenues to the state budget over the year.
One of the most notable achievements was the revival of Ukraine’s lottery market. Three lottery operators were licensed for the first time in over 12 years, with licence payments exceeding ₴72m ($1.6m).
Tax revenues from those operators exceeded ₴74m ($1.7m) in Q1 2026 alone, following the introduction of mandatory licensing conditions requiring electronic reporting, real-time sales control and unique QR codes on all lottery tickets and terminals.
Enforcement actions
PlayCity pursued enforcement against both illegal operators and advertising violations. The agency blocked over 4,100 websites hosting unlicensed gambling content and referred more than 700 social media accounts for blocking due to illegal gambling advertisements.
Fines exceeding ₴988m ($22.3m) were imposed on gambling organisers for regulatory breaches identified through inspections. The agency also levied approximately ₴80m ($1.8m) in penalties for advertising violations, with the statutory fine for illegal gambling advertising in 2026 set at ₴5,188,200 ($116,900) per offence.
Working arrangements were established with Meta, TikTok, YouTube, Google, Viber and Twitch to accelerate identification and removal of non-compliant advertising content. The regulator launched a public online complaints tool last month to enable citizens to report illegal gambling advertising directly.
The agency restored 100% reporting by gambling organisers and introduced reporting obligations for lottery operators for the first time. Planned inspections resumed in 2026 following a moratorium in place since 2022.
Digital monitoring
PlayCity launched the State Online Gambling Monitoring System (DSOM) into test operation during its first year, with 11 operators connected to the platform. DSOM is designed to give the state real-time visibility of market activity and enable faster identification of risks and violations.
Gennady Novikov, head of PlayCity, said:
“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. For such a dynamic market, this is critical. The state should not catch up with problems, but see risks before they become a crisis.”
PlayCity introduced a new register of persons restricted from access to gambling and approved Principles of Responsible Gaming in its first year. Financial and time limits on gambling were introduced in partnership with the Ministry of Digital Transformation.
The agency also developed a mechanism to restrict military personnel from participating in gambling during the period of martial law.
Year two priorities
PlayCity has outlined plans to submit draft amendments to the Tax Code, Gambling Law and Lottery Law to parliament, and to expand risk-based supervision across the market.
The agency also intends to update advertising requirements, launch an updated lottery market online control system and introduce a formal strategy for combating gambling addiction.
For operators active in or considering entry to the Ukrainian market, the reality points toward a more tightly monitored environment with increased digital reporting obligations and a lower tolerance for non-compliance.
Do you have a story worth sharing?
Send it over to our editors!
