One year of PlayCity: How the regulator is transforming Ukraine’s gambling market

The first year of PlayCity's operations marked an important milestone for Ukraine’s gambling and lottery market. In a country that continues to operate under wartime conditions, the government has prioritized transparency, digitalization, and stronger oversight in sectors that had long been characterized by regulatory gray areas. During this period, PlayCity not only managed to establish an effective licensing framework but also laid the foundation for a more predictable and manageable market environment.

One of the most notable achievements was the restoration of a fully functioning licensing system. Over the course of the year, the agency issued 250 licenses to gambling operators, equipment suppliers, and lottery companies. Particularly significant was the fact that lotteries returned to the officially licensed market after a hiatus of more than a decade. Combined with the launch of digital licensing through the Diia portal, this development substantially simplified interactions between businesses and the state. In the lottery sector, it also created a clearer distinction between legal and illegal operations, which is especially important given that this segment of the gambling industry had remained in a regulatory gray zone for more than ten years and benefited from the lack of oversight.

The financial impact has also been considerable. According to PlayCity, the gambling sector generated approximately UAH 14 billion in tax revenues for the state budget, while licensing fees exceeded UAH 2 billion. In euro terms, this amounts to roughly €350 million in tax contributions from gambling operators and approximately €14 million in licensing revenues. In addition, the state budget received around €50 million in personal income tax (PIT) generated by gambling-related activities. These figures demonstrate that a well-regulated gambling industry can serve not only as a subject of oversight but also as an important source of domestic government revenue.

Particular attention should be paid to the results achieved in combating illegal gambling activities and unlawful advertising. During the year, more than 4,100 illegal websites and over 700 social media accounts promoting unauthorized gambling services were blocked. Furthermore, the regulator imposed fines totaling nearly €25 million for violations of gambling legislation and an additional €2 million for breaches of advertising regulations. Equally important is the fact that the process of blocking illegal resources has become significantly faster, with many cases now being resolved within 24 hours. An online reporting form for complaints regarding illegal gambling advertising was also introduced, simplifying communication between citizens and the regulator while creating an effective mechanism for public oversight.

The launch of the State Online Gambling Monitoring System (SOMS) has also become an important step toward establishing a more comprehensive regulatory framework. The first 11 licensed operators have already connected to the system and are transmitting transaction data. As a result, the government can now monitor actual betting activity, payouts, and refunds almost in real time. This type of digital supervision is gradually becoming just as important a regulatory tool as licensing registers and on-site inspections. As more transactions pass through this digital infrastructure, opportunities for shadow-market activity continue to diminish.

Overall, PlayCity’s first year of operation has demonstrated that modern regulation can be built not only on restrictions and penalties but also on digital tools, transparent rules, and systematic oversight. Most importantly, this approach delivers measurable results that can be seen in tangible contributions to the state budget. The continued strengthening of this model is gradually shaping a mature and well-regulated gambling market in Ukraine, one that serves the interests of the state, businesses, and society alike.