Ukraine’s gambling regulator PlayCity issued 250 licences, blocked more than 4,100 illegal websites, and recorded an estimated UAH 14bn in gambling tax contributions in its first year of operation, according to the agency’s inaugural annual report.
PlayCity replaced KRAIL as Ukraine’s gambling authority and operates alongside the Ministry of Digital Transformation. The report covers the period through to mid-2026 and sets out the authority’s activity across licensing, enforcement, digital monitoring, and responsible gambling.
Licensing and Tax Revenue
Of the 250 licences issued, 11 went to gambling operators, three to lottery operators, and 213 to gaming equipment suppliers. Digital licensing was rolled out through Ukraine’s Diia government portal. Licence fees generated more than UAH 569m (€11m) for the state budget.
Lottery licensing accounted for UAH 72m of that total. An application window opened in December, marking the first regulated period for lottery operators after more than a decade outside any formal framework. Tax receipts from licensed lottery operators exceeded UAH 74m in Q1 2026, the first quarter in which lottery operations ran under regulation.
Gambling organisers contributed an estimated UAH 14bn in taxes overall. A further UAH 2bn was collected in personal income tax linked to the sector.
Enforcement
PlayCity described its enforcement posture as aggressive. The regulator imposed fines exceeding UAH 988m for legal violations and around UAH 80m for advertising rule breaches. In May, it launched an online complaints platform to accelerate public reporting of illegal gambling advertising.
The agency blocked 4,100 illegal gambling websites and over 700 social media accounts connected to unlawful promotions. PlayCity said sites can now be taken down within a single day, a significant operational improvement over previous processes.
The enforcement trajectory parallels actions elsewhere in Europe. Romania’s gambling regulator blocked 30 unlicensed websites in a comparable crackdown, while Italy’s digital firewall initiative has similarly targeted illegal operators at speed.
DSOM and Data-Driven Oversight
A central feature of the report was the launch of Ukraine’s State Online Gambling Monitoring system (DSOM), which tracks transactions including bets, payouts, and returns in real time. Eleven operators are already connected to the system.
PlayCity head Gennedy Novikov described the initiative as foundational to the authority’s regulatory model:
We are creating infrastructure that the state actually did not have. We are building data-driven regulation, a model in which decisions are made based on data. For such a dynamic market, this is critical. The state should not catch up with problems, but see risks before they become a crisis.
Responsible Gambling and Military Exclusions
PlayCity processed more than 3,000 requests for gambling restrictions and created a register of individuals with gaming addiction. Financial and time limits were introduced with the Ministry of Digital Economy, alongside Principles of Responsible Gaming.
The regulator also coordinated with the Ministry of Defence and Ministry of Digital Affairs to prevent military personnel from accessing gambling services. Automated systems now cross-check login attempts against military rosters and exclusion lists, blocking access where restricted individuals are identified.
Legislative Pipeline
PlayCity oversaw 13 government resolutions and issued ten ministry orders covering premises permits, reporting frameworks, unique player identifiers, and DSOM connectivity requirements. Draft amendments to the Tax Code, Gambling Law, and Lottery Law have been prepared and submitted to parliament.
Several enforcement and monitoring mechanisms have operated on an interim basis pending those legislative changes. Parliamentary approval of the full package remains the next milestone for Ukraine’s regulatory framework, as the country looks to align its oversight model with the cross-border regulatory coordination taking shape across Europe.
Source: PlayCity
