PlayCity Begins Operations to Oversee Ukraine Gambling Sector

PlayCity, Ukraine’s new gambling regulator, has already begun operations, with authorities hoping this will grant the state greater oversight on unlicensed operators, problem gamblers, and companies tied to Russia.

PlayCity Begins Operations

Ukraine’s Ministry of Digital Transformation has stated that PlayCity’s aim is to ensure transparency and accountability in the gambling and lottery industry. Key priorities for the agency include digitizing the licensing process, implementing a national online monitoring system to track legal casinos in real time, shutting down illegal gambling venues, and revitalizing the lottery market.

A central element of PlayCity’s strategy is the rollout of a national online monitoring system. This platform will allow real-time oversight of licensed gambling venues throughout Ukraine, granting authorities instant access to operational data. Through this initiative, the government seeks to enhance accountability and ensure operators comply with the nation’s legal regulations.

Currently, the lottery sector operates without licensing requirements, meaning it neither pays license fees nor falls under government supervision. As a result, the national budget loses up to UAH 10 billion (around $241 million) annually in taxes due to the shadow gambling and lottery market. Formalizing this sector is expected to significantly increase tax revenues, which can be allocated to bolstering the country’s defense efforts.

The Ukrainian government launched PlayCity in late March this year with the aim of establishing stronger oversight on the country’s gambling sector. Hennadiy Novikov, a lawyer with experience in public administration, leads the new state agency. He formerly served as deputy head of the Gambling Regulation Commission’s secretariat and, leveraging his industry expertise, supported the Ministry of Digital Transformation’s plan to dismantle the previous regulator. 

Furthermore, Novikov was involved in previous enforcement efforts, including actions against illegal gambling. In 2024, more than 4,500 unauthorized gambling websites were blocked as part of his initiative. Additionally, inspections overseen by Novikov led to fines totaling nearly UAH 18 million (about $433,00) imposed on operators who failed to comply with regulations.

What Else Does PlayCity Aim to Achieve?

Addressing problem gambling is also a key tenet of the new agency. PlayCity has the authority to restart and integrate the national registry of problem gamblers with the Diia.Engine platform. This integration will enable individuals to submit self-exclusion requests directly via the Diia mobile app, Ukraine’s government services portal. This initiative forms part of a wider strategy to combat gambling addiction and safeguard vulnerable individuals by providing accessible, streamlined digital tools.

Another key mission of the new agency is to remove gambling businesses linked to Russian interests from the market. This effort supports Ukraine’s wider national security goals amid the ongoing conflict with Russia. Authorities consider the removal of these entities not just a regulatory necessity but also a critical aspect of national defense.