Ukraine\u2019s gambling sector is undergoing a period of active transformation. The state is intensifying its fight against illegal operators while expanding licensing practices and testing new digital oversight tools. Against this backdrop, the market is gradually moving toward a more transparent and balanced model, with the emphasis placed not only on enforcement but also on creating conditions for the development of the legal segment.<\/p>\n\n\n\n
Anton Kuchukhidze<\/strong>, Chairman of the Ukrainian Gambling Council (UGC)<\/strong>, believes these changes signal the emergence of a more systematic approach to industry regulation.<\/p>\n\n\n\n One of the most visible developments in recent months has been the intensified crackdown on the illegal segment. In February alone, the regulatory agency PlayCity<\/strong> blocked 226 illegal gambling websites. In addition, Kuchukhidze noted that 87 TikTok accounts and 27 Meta pages used for unlawful advertising were taken down. Since the regulator began operating, access to more than 3,000 such websites has been restricted.<\/p>\n\n\n\n According to Kuchukhidze, these figures already represent real progress, especially given how quickly the illegal market adapts to restrictions.<\/p>\n\n\n\n \u201cFebruary performance looks really encouraging. More than 200 illegal websites blocked in a single month is solid, tangible progress and shows they’re building effective IT tools and partnerships.\u201d<\/p>\n\n\n\n At the same time, he stresses that the fight against offshore operators cannot be a one-off campaign: \u201cOffshore operators don’t just vanish, they migrate fast, spinning up new domains, leaning on crypto or Telegram channels. It’s a never-ending daily grind that demands constant administrative muscle, law enforcement backup, and tech upgrades.\u201d<\/p>\n\n\n\n In the UGC head’s view, the current stage marks an important starting point, but it is still too early to draw final conclusions about its effectiveness.<\/p>\n\n\n\n \u201cIt’s a strong start that’s chipping away at their presence bit by bit, but the real test comes after a full year. If illegal ad volumes drop noticeably and the legal market’s share climbs, we’ll know it’s working systematically. Right now, it’s truly positive momentum.\u201d<\/p>\n\n\n\n Alongside stronger enforcement, Ukraine continues to develop its legal market. In February, PlayCity issued six new licenses covering online gambling, B2B software development, and, crucially, lotteries. The activation of licensing in the lottery segment \u2013 which had remained in the shadows for more than a decade \u2013 is seen as particularly significant by the industry. The new licenses have already generated $1.66 million in state budget revenue.<\/p>\n\n\n\n Kuchukhidze sees this as an example of a more balanced regulatory approach: \u201cUkraine’s approach should be more measured: zero compromise on illegals through blocking, fair checks on the legal side, and growth incentives via accessible licensing.\u201d<\/p>\n\n\n\n According to him, progress in the lottery segment is especially telling: \u201cThe lottery milestone proves it \u2013 turning a shadowy segment into real budget revenue without stifling business. By maintaining this trajectory and prioritising transparency over excessive restrictions, we avoid pushing players into the black market and allow the legal sector to grow.\u201d<\/p>\n\n\n\n One of the key next steps in the reform process may be the launch of the State Online Monitoring System (DSOM)<\/strong>, which has already entered testing. According to Kuchukhidze, this tool could fundamentally reshape market transparency.<\/p>\n\n\n\n \u201cThe State Online Monitoring System stands out as one of the most anticipated tools in our gambling reform, and entering testing now feels like a pivotal moment. It promises real-time tracking of financial flows \u2013 bets, payouts, player balances \u2013 which could finally reveal true market volumes and put an end to manipulation of reported figures.\u201d<\/p>\n\n\n\n He adds that DSOM\u2019s potential goes far beyond monitoring: \u201cIt can shrink the grey lottery segment, boost tax revenues, identify organiser-player issues in real time to enforce responsible gaming principles, and help curb gambling addiction.\u201d<\/p>\n\n\n\n However, he cautions that technology alone is not a silver bullet: \u201cIt’s just one piece of the ecosystem. Without urgent Tax Code updates, DSOM risks falling short \u2013 or worse, creating misinterpretations that hit legal operators the hardest.<\/p>\n\n\n\n \u201cLegislative gaps have lingered for years, but PlayCity addressing them shows clear intent: predictable rules benefit everyone \u2013 the state, players, and business. If properly aligned, this system could turn Ukraine into a model of transparent and responsible regulation, potentially delivering $690M\u2013$920M in annual revenue.<\/p>\n\n\n\n \u201cGet it half right, and it becomes another layer burdening the regulated market without real impact.\u201d<\/p>\n\n\n\n Overall, the UGC views the current state of the market as a transition from a fragmented model toward more balanced oversight. Despite wartime conditions and ongoing uncertainty, the industry retains growth potential, while the state is increasingly combining enforcement tools with market development mechanisms.<\/p>\n\n\n\n Kuchukhidze outlines several key priorities for building a more resilient ecosystem:<\/p>\n\n\n\n