Shifting the balance between the legal and shadow markets — PlayCity accelerates website blocking

Since the beginning of the year, Ukraine has significantly intensified its crackdown on the shadow gambling sector, particularly in the online segment. The gambling regulator, PlayCity, has submitted more than 6,600 illegal websites for blocking - more than double the total number recorded throughout the previous year. This is undoubtedly a positive trend, offering hope that illegal operators will continue to lose ground while the licensed sector will finally have the opportunity to compete in a more balanced and fair market environment.

It is now possible to speak of the emergence of a systematic mechanism for identifying and blocking illegal gambling platforms. Rather than isolated actions targeting individual operators, the focus has shifted toward sustained and systematic pressure on the shadow segment of the market. The key difference from previous years lies not only in the number of blocked websites but also in the speed of enforcement. Whereas the blocking process previously took weeks or even months, often becoming little more than a bureaucratic formality - today, once PlayCity submits a request to the National Commission for the State Regulation of Electronic Communications, access to an illegal website can be restricted within just 24 hours.

This progress has been made possible by combining two key factors: digital monitoring, which enables the rapid detection of newly emerging illegal websites, and stronger coordination among government agencies. Close interagency cooperation has significantly reduced the time between identifying a violation and actually restricting access to the offending website.

Faster blocking is not merely a technical improvement - it fundamentally changes the business model of illegal gambling operators. Their operations rely heavily on networks of mirror websites and the constant rotation of domain names, allowing them to remain accessible even after their primary websites are blocked. In the past, while regulators worked through lengthy administrative procedures, illegal operators had ample time to launch new domains and retain their customer base.

When a website can be blocked within a single day and the strategic objective is to reduce that timeframe to just a matter of minutes illegal platforms no longer have sufficient time to establish themselves as reliable and familiar entry points for players. This significantly increases the operating costs associated with maintaining uninterrupted access to their services and, consequently, reduces the profitability of their illegal business model.

To achieve this acceleration, Ukraine's Ministry of Digital Transformation established an interagency working group comprising representatives of the National Security and Defense Council, the National Bank of Ukraine, the Ministry of Digital Transformation, the National Commission for the State Regulation of Electronic Communications, the State Service of Special Communications and Information Protection, and the National Center for Operational and Technical Management of Public Telecommunications Networks.

Such broad interagency coordination demonstrates that combating illegal gambling is no longer viewed as the sole responsibility of a specialized regulator. Instead, it has become a shared priority across several key government institutions, each playing a distinct role in restricting access to illegal gambling resources. Ideally, this cooperation will eventually enable internet service providers to block access to illegal gambling websites within minutes of their detection, rather than within 24 hours as is currently the case.

At the same time, it is important to recognize that website blocking, regardless of its effectiveness, is only one instrument in the broader fight against the shadow gambling market. To create truly comprehensive pressure on illegal operators, blocking measures must be complemented by other elements of public policy, including clear rules governing gambling advertising, the continued development of responsible gambling principles, and the establishment of transparent and sustainable tax conditions for licensed operators.

Only such a comprehensive approach where rapid enforcement is accompanied by transparent regulation of the legal market can deliver a lasting reduction in the size of Ukraine's illegal gambling sector, rather than merely creating temporary obstacles for illegal operators.