Ukraine’s gambling regulator, PlayCity, has published its first annual report. The report highlights progress in licensing, taxation, digital monitoring, and enforcement since replacing the former regulator KRAIL.
Working alongside the Ministry of Digital Transformation, PlayCity said its first year focused on building a more transparent and data-driven regulatory framework. This new framework is for the country’s gambling industry.
Licensing and Tax Revenue Increase
According to the report, PlayCity issued 250 licenses during 2025 and 2026 through a newly implemented digital licensing system. This system is available via the Diia government platform.
The regulator granted 11 licenses to gambling operators, 3 to lottery operators, and 213 to gaming equipment suppliers.
License fees generated more than UAH569 million for the state budget. Lottery licensing alone contributed UAH72 million after authorities opened a licensing process for the sector. Previously, the sector had operated without formal regulation for more than a decade.
During the first quarter of 2026, licensed lottery operators generated more than UAH74 million in tax revenue.
Overall, PlayCity estimated that licensed gambling operators contributed approximately UAH14 billion in taxes. In addition, an extra UAH2 billion was collected through personal income tax related to the sector.
Enforcement Efforts Intensify
The regulator reported significant enforcement activity against illegal operators.
PlayCity imposed more than UAH988 million in fines for legal violations. It also imposed an additional UAH80 million for breaches of gambling advertising regulations.
To strengthen enforcement, the regulator launched an online complaints platform in May. This allows the public to report suspected illegal gambling advertisements more efficiently.
Authorities also blocked more than 4,100 illegal gambling websites and over 700 social media accounts associated with unauthorized gambling promotions. According to PlayCity, illegal websites can now be removed within a single day of identification.
Digital Monitoring System Launched
One of the regulator’s most significant initiatives was the introduction of the State Online Gambling Monitoring System (DSOM).
The platform tracks gambling activity, including bets, payouts, and player returns, providing regulators with real-time oversight of licensed operations. Eleven operators have already been connected to the system.
PlayCity Head Gennedy Novikov said the project represents a shift toward data-driven regulation. As a result, authorities can identify potential risks before they develop into larger issues.
The regulator views DSOM as a key component of its long-term strategy. This strategy aims to improve transparency and strengthen oversight across the gambling market.
Responsible Gambling Measures Expanded
Responsible gambling remained a major focus throughout the year.
PlayCity processed more than 3,000 requests related to gambling restrictions and established a register for individuals experiencing gambling-related problems.
In cooperation with government agencies, the regulator introduced financial and time-based gambling limits. It also implemented responsible gaming guidelines and launched measures aimed at preventing military personnel from accessing gambling services.
Automated verification systems now cross-reference player logins against military personnel databases and self-exclusion registers, blocking access where restrictions apply.
Regulatory Framework Continues to Develop
During its first year, PlayCity oversaw 13 government resolutions and issued 10 ministerial orders. These orders covered areas such as licensing requirements, reporting standards, unique player identification systems, and DSOM integration procedures.
The regulator also prepared amendments to Ukraine’s Tax Code, Gambling Law, and Lottery Law. These amendments have been submitted to parliament for consideration.
As Ukraine continues modernizing its gambling sector, PlayCity said its focus remains on strengthening compliance. Furthermore, the regulator is improving consumer protection and supporting a sustainable and transparent regulated market.
