The report marks PlayCity’s inaugural year, following its takeover of predecessor KRAIL.
Ukraine’s gambling regulator PlayCity, in cooperation with the Ministry of Digital Transformation, has completed its inaugural year of operations, reporting progress in licensing, tax collection and enforcement measures.
The report, published on Monday, marks the first since PlayCity replaced KRAIL as the country’s gambling regulator.
Over the past year, PlayCity said it had issued a total of 250 licences, generating over ₴569 million ($12.8 million) in fees paid directly into the state budget.
The breakdown of these licences includes 11 issued to gambling operators, three to lottery operators and 213 to suppliers of gaming equipment.
Licence fees from the three lottery operators alone contributed approximately ₴72 million ($1.62 million). This is notable as, previously, the lottery market had been suspended for more than a decade. Tax revenues from licensed lottery operators exceeded ₴74 million in the first quarter of 2026 alone.
Meanwhile, tax revenues from gambling organisers reached an estimated ₴14 billion, complemented by around ₴2 billion collected in personal income tax related to the gambling sector.
Illegal gambling and advertisements
PlayCity has spent much of the past year pursuing enforcement actions against illegal gambling activities. This has seen fines in excess of ₴988 million being imposed on gambling organisers due to legal violations, alongside roughly ₴80 million in penalties for breaches of advertising regulations.
Last month, the regulator launched an online complaints system designed to expedite public reporting of illegal gambling advertising. Advertisements found to be illegal will be either removed with accounts blocked or heavily fined. The current statutory administrative fine for illegal gambling advertising in 2026 is set at ₴5,188,200.
A major component of the agency’s enforcement drive has been the blocking of over 4,100 illegal gambling websites and more than 700 social media accounts associated with unlicensed gambling advertisements.
Notably, the duration for website blocking has been reduced to as little as a single day, enhancing the regulator’s ability to respond swiftly.
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, facilitating better oversight.
DSOM
The agency, alongside the Ministry of Digital Transformation, prepared technical requirements and successfully 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 activities across the country’s regulated gambling environment in near-real time. It records key actions including payouts, returns and bets placed.
In response to the DSOM in the annual report, Gennedy 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.”
Beyond DSOM, PlayCity has launched a digital licensing pathway via the government’s Diia portal, streamlining permit issuance.
Updates to licence terms were introduced following open competitions, signalling a move towards more competitive and transparent market participation.
Social harm mitigation
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 come in the form of automated mechanisms that will monitor log-in attempts and cross-reference with military personnel roster and a list of barred individuals. If a match indicating restricted status were to be detected, access to online gambling services would be automatically blocked.
Research into the social impacts of gambling has also been initiated to guide ongoing policy development.
The agency oversaw the adoption of 13 government resolutions aimed at market reform and issued ten ministry orders covering a range of regulatory areas, including premises permits, reporting frameworks, the establishment of unique player identifiers and rules governing gaming equipment connections to the DSOM.
Draft amendments to key laws, the Tax Code, the Gambling Law and the Lottery Law, have been prepared and have reportedly been submitted to the Ukrainian parliament for consideration.
Next steps
Looking ahead, PlayCity outlined plans to expand the DSOM system 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 tests include parliamentary ratification of proposed legislative changes along with full operational implementation of DSOM across all operators. The aim is also to see a measurable reduction in illegal gambling and related advertising.
For market participants, the trajectory points to a more strictly overseen gambling environment marked by greater digital integration and regulatory enforcement, with significant financial implications for compliance and market participation.
