"PlayCity" instead of CRGL - what changes can the gambling market expect?

Since 1 April, a new national regulator has been operating in the domestic gambling market, and CRGL has become a thing of the past. On 21 March 2025, the Cabinet of Ministers established the state agency PlayCity, which will implement the state policy in the field of organising and conducting gambling and lottery activities.

The activities of the state agency will be coordinated by the government through the Vice Prime Minister of Ukraine for Innovation, Education, Science and Technology - Minister of Digital Transformation. Funding for the new body for 2025 is envisaged within the budget previously allocated to CRGL, with an additional reallocation of UAH 14.3 million to support initial operations through the Ministry of Digital Transformation.

What changes can Ukrainian gambling expect after the emergence of a new regulatory body? According to the representatives of the Ministry of Digital Transformation, the new regulator aims to make the gambling market more transparent and efficient. To achieve this, it is planned to introduce the following:

- digitalisation of licensing - automation of the licensing process through simplification of procedures should reduce the impact of the human factor and increase transparency and speed;

- real-time rate monitoring - a system for tracking rates to prevent illegal activities, detect fraud and combat money laundering will help improve control and prompt response to possible risky transactions;

- Establishment of a monitoring and analytics department to oversee media and social media advertising for legality and compliance with the law;

- deepening cooperation with global IT corporations and search engines.

These changes should not only improve regulation, but also ensure consumer protection, in particular through a responsible gambling environment and fair advertising. In particular, Law No. 4116-IX, signed by President of Ukraine Volodymyr Zelenskyy, provides for stricter penalties for violations of licensing requirements.

At the same time, we should not rule out a significant reformatting of the market, as the change of the national regulator may lead to shifts in the existing balances in the competitive environment, as new players may enter the market or "old" organisers may change their development strategies.

Market experts have already drawn attention to the issue of national identity, for example, the choice of the English name for the regulator, as "PlayCity" instead of the Ukrainian name, and suggested that this is not an accident but a deliberate focus on wider involvement of multinational companies in the Ukrainian gambling market. We will find out soon whether this assumption is true.

Overall, the creation of PlayCity is an important step towards further reform of the gambling market in Ukraine, with a focus on digitalisation, transparency and anti-corruption. These changes are expected to bring economic benefits, but require close monitoring to ensure long-term effectiveness.

However, the success of the new regular body will depend on its ability to cope with challenges, such as the shadow market and external influence, in particular from russian companies trying to operate in the black market in Ukraine.