PlayCity Ukraine Issues 250 Licences in First Regulatory Year

PlayCity Ukraine Issues 250 Licences in First Year – Expanded Enforcement and Digital Monitoring Reshape Gambling Oversight

Key Takeaways

• PlayCity issued 250 licences in its first year, generating more than UAH 569 million in licence fees.
• Tax revenues from gambling organisers reached about UAH 14 billion, with an additional UAH 2 billion in personal income tax linked to the sector.
• The regulator blocked over 4,100 illegal gambling websites and more than 700 related social media accounts.
• Eleven operators were connected to the new State Online Gambling Monitoring system (DSOM).
• More than 3,000 gambling restriction requests were processed, and a new addiction register was introduced.

PlayCity Completes First Year After Replacing KRAIL

PlayCity, Ukraine’s gambling regulator, has published its first annual report since taking over from its predecessor KRAIL. The report, prepared in cooperation with the Ministry of Digital Transformation, outlines developments in licensing, tax collection, enforcement, and digital oversight.

During its first year, the regulator issued 250 licences. These included 11 licences for gambling operators, three for lottery operators, and 213 for gaming equipment suppliers. According to the report, licence fees generated more than UAH 569 million, paid directly into the state budget.

The three licensed lottery operators contributed approximately UAH 72 million in licence fees. This marks a notable development, as the lottery market had previously been suspended for more than a decade. In the first quarter of 2026 alone, tax revenues from licensed lottery operators exceeded UAH 74 million.

Tax Revenues and Financial Contributions from the Gambling Sector

Beyond licence fees, the report details broader fiscal contributions from the regulated gambling market. Tax revenues from gambling organisers reached an estimated UAH 14 billion. In addition, around UAH 2 billion was collected in personal income tax connected to gambling sector activities.

For users and operators, these figures highlight the scale of the regulated market and the financial impact of formalised licensing and reporting requirements. The reintroduction of mandatory reporting for gambling operators resulted in a reported 100 percent compliance rate over the past year. For the first time, lottery operators are also required to submit regular reports.

Scheduled inspections resumed after a previous moratorium. In 2026, PlayCity conducted seven planned inspections and four unplanned inspections. The regulator also developed centralised gambling registers covering operators and gaming equipment, aimed at improving oversight and data accuracy.

Enforcement Measures Target Illegal Gambling and Advertising

A significant part of PlayCity’s first year focused on enforcement against illegal gambling activities. The regulator imposed more than UAH 988 million in fines on gambling organisers for legal violations. An additional UAH 80 million in penalties related to breaches of advertising regulations.

The statutory administrative fine for illegal gambling advertising in 2026 is set at UAH 5,188,200. To support enforcement, PlayCity launched an online complaints system that allows the public to report illegal gambling advertising. Reported content can be removed, accounts blocked, or fines imposed.

The regulator also reported blocking over 4,100 illegal gambling websites and more than 700 social media accounts linked to unlicensed operators. The time required to block websites has been reduced to as little as one day, enabling faster intervention.

Launch of DSOM and Expansion of Digital Monitoring

A central development in the first year was the introduction of the State Online Gambling Monitoring system, known as DSOM. Developed in cooperation with the Ministry of Digital Transformation, DSOM is a centralised transaction monitoring platform that records betting activities in near real time.

The system captures data such as bets placed, payouts, and returns. According to the report, 11 operators have been connected to DSOM. The regulator described this as part of a broader shift toward data driven regulation.

In addition to DSOM, PlayCity launched a digital licensing pathway through the government’s Diia portal. Updates to licence conditions were introduced following open competitions, with the stated aim of increasing transparency and competitiveness in market participation.

The regulator also oversaw the adoption of 13 government resolutions related to market reform and issued ten ministry orders covering areas such as premises permits, reporting frameworks, unique player identifiers, and technical rules for connecting gaming equipment to DSOM. Draft amendments to the Tax Code, the Gambling Law, and the Lottery Law have been prepared and submitted to parliament.

Responsible Gambling Measures and Player Restrictions

The annual report details measures designed to address gambling related harm. In 2026, the regulator processed more than 3,000 requests for gambling restrictions. A new register of persons with gaming addiction was introduced as part of this strategy.

In cooperation with the Ministry of Digital Economy, financial and time limits on gambling activities were implemented. PlayCity also worked with the Ministry of Defence and the Ministry of Digital Affairs to prevent military personnel from participating in gambling.

Automated mechanisms are designed to monitor login attempts and cross reference them with a roster of military personnel and a list of barred individuals. If a restricted status is detected, access to online gambling services is automatically blocked.

Research into the social impact of gambling has also been initiated to inform future policy decisions. Looking ahead, the regulator plans to expand DSOM to a second stage, integrate the military register with its restricted access register, renew online lottery control systems, and implement risk based supervision.

Our Assessment

PlayCity’s first year as Ukraine’s gambling regulator was marked by large scale licensing activity, significant tax collection, and intensified enforcement against illegal operators. The introduction of DSOM and digital licensing systems signals a shift toward centralised, data based supervision. For operators and users, the developments indicate a more structured regulatory environment with stricter monitoring, mandatory reporting, and expanded compliance requirements across the licensed gambling market.