Ukraine opens competitive tender for new national lottery operator
Table of contents
- Ukraine’s gambling regulator PlayCity launches tender to license state lottery operators.
- The move formalises a previously unregulated lottery market, aiming to raise over UAH 10 billion (€220 million) annually.
- Proceeds from licensing fees are expected to support national defence amid the ongoing conflict.
Ukraine’s gambling regulator, PlayCity, has launched a competitive tender to license operators for the national lottery, formalising a market that has long operated in a legal grey area.
The initiative aims to generate over UAH 10 billion (€220 million) annually, with proceeds earmarked to support national defence amid the ongoing conflict.
Regulator-led formalisation
PlayCity, established in June 2025 to replace the Commission for the Regulation of Gambling and Lotteries (KRAIL), now oversees all gambling and lottery activities in Ukraine. KRAIL faced criticism for poor oversight, and PlayCity’s creation is part of broader reforms to streamline control and improve transparency.
The Cabinet of Ministers tasked PlayCity with running the tender. Draft rules, shaped by public consultation in September 2025, stipulate that only verified domestic firms can participate.
The process is set to run for 60 days from the announcement. PlayCity has also adapted procedures to accommodate martial law conditions, ensuring fair competition and ending unregulated lotteries that previously evaded taxes and oversight.
Revenue for national defence
Annual licensing fees could exceed UAH 10 billion (€220 million / $242 million), with each operator contributing UAH 22.4 million (€490,000) per year. Funds will directly support Ukraine’s defence efforts.
An electronic accounting system will track lottery sales and prizes, while QR codes on tickets and terminals aim to prevent fraud and build public trust. In August 2025, PlayCity issued eight fines totalling UAH 3.2 million (€70,000) for lapses in reporting by casinos, signalling a stronger enforcement regime.
Market evolution
Gambling was legalised in Ukraine in 2020, but lotteries remained largely informal until now. The current tender updates licensing standards from 2013, introducing stricter rules, transparent reporting, and clear taxation. The move draws significant domestic interest, offering stability amid wartime risks while imposing compliance requirements on operators.
The overhaul integrates lotteries into the legal framework, ensuring revenues flow to state coffers and regulators gain the tools needed to protect players and enforce standards. Public consultations shaped the tender rules, and operators now face monitored systems to ensure compliance.
International attention
Ukraine’s approach has attracted international interest. Stable licensing frameworks can draw investment, though the ongoing conflict presents challenges. Success in this market could serve as a model for other countries, balancing regulation with rapid industry growth.
Prime Minister Yulia Svyrydenko said:
“For more than a decade, this area has operated in a grey zone: without control, transparent reporting, and payment of license fees.”
About the author
Bianca Máthe
Bianca Mathe joined the iGaming industry in 2018 and has since built extensive experience across multiple verticals, working with international gaming organizations on editorial, marketing, and media strategy. She brings a strong understanding of the regulatory, commercial, and technological forces shaping the global iGaming sector.
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