The government of Ukraine is expected to imminently announce the creation of a new state agency charged with the regulatory oversight of gambling activities.
According to Ukrainian media, the government representative in the Verkhovna Rada, Taras Melnychuk, disclosed plans to establish a new “Central Executive Body” to “implement state policy in the field of organizing and conducting gambling and lotteries.”
Melnychuk’s revealed that the agency would take on the title of “PlayCity” to replace KRAIL, the liquidated Gambling and Lotteries Commission of Ukraine. However the Telegram provided no information on the direct duties of the agency.
PlayCity will be formed through coordination involving the Cabinet of Ministers, with oversight provided by Mykhailo Fedorov, the Deputy Prime Minister for Innovation, Development of Education, Science and Technology, and Minister of Digital Transformation.
Gambling advisory 4H Agency confirmed to SBC that it anticipates the Rada to publish a “draft to form a new regulatory agency,” which should be signed early next week.
The mandate of the new state agency will focus on eliminating corruption from gambling, which led to President Volodymyr Zelenskyy dissolving KRAIL in January.
The Rada aims to install a new gambling authority by April, with the Cabinet of Ministers set to fast-track new amendments to the Gambling Law of 2020 to enhance state control and supervision of gambling activities.
The Gambling Law came into effect in July 2020 as part of President Zelenskyy and the government’s ‘economic revitalisation programme’, ending the federal prohibition of gambling, which had existed since 2009.
The agency of KRAIL was established to govern gambling services for land-based casinos, gaming halls, online platforms, and lottery licences. However, KRAIL’s authority came into immediate disrepute due to corruption charges against senior-ranking officials, following an investigation into its awarding of gambling licences.
KRAIL’s tenure as Ukraine’s gambling authority was marred by allegations of bribery and corruption before Russia’s invasion in the winter of 2022. The challenging wartime conditions led Ukraine’s gambling licences to come under scrutiny from the National Security and Defence Council (NSDC), which imposed sanctions on several operators and introduced strict restrictions on gambling transactions.
By 2023, Ukrainians were spending nearly UAH 400 million (circa €8m) on online gambling daily, according to the National Bank. Reports highlighted that military personnel were particularly vulnerable to gambling addiction, leading to widespread criticism.
Following these revelations, political scrutiny over gambling governance intensified. An online petition calling for restrictions on online casinos during martial law quickly gained momentum, gathering 25,000 signatures – the threshold required for a presidential intervention.
Though amendments are yet to be settled, the Cabinet of Ministers will decide on the specific structure of this new body. The regulator will have the authority to set limits on gambling by introducing restrictions on time and individual limits on money spent.
The new agency will also have the authority to directly block illegal gambling websites and expand the conditions under which licences can be revoked. According to 4H Agency, the law will introduce a near-total ban on gambling advertising, with only limited exceptions.
Online advertising will be allowed, but it must not target consumers under the age of 21, in line with Ukraine’s existing gambling age restriction of 21+. Television advertising will be permitted only between 11 pm and 6 am. Sponsorship opportunities will remain possible but will be limited to the field of sports.
4H Agency noted that new amendments will be introduced to strengthen the state’s control and surveillance of gambling. Further changes may include the government implementing a new system to monitor payments and introducing requirements for a new B2B licensing regime for technology and service suppliers.
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