PlayCity has replaced the Commission for the Regulation of Gambling and Lotteries (KRAIL), which was dismantled after the government determined that it was ineffective in leading the country’s gaming sector.
The new agency is tasked with modernising Ukraine’s gambling oversight through the integration of digital technologies.
Among its core mandates is the complete digitisation of the licensing process for gambling and lottery operators.
This initiative is expected to streamline regulatory procedures, ensure better compliance, and reduce corruption by minimising manual intervention.
A key focus of PlayCity’s strategy is the implementation of a national online monitoring system.
This platform will enable real-time surveillance of legal gambling establishments across Ukraine, providing the authorities with immediate access to operational data.
By doing so, the government aims to improve ability and ensure that operators adhere to the country’s legal framework.
The agency also intends to relaunch the currently unregulated lottery market, which is operating without licensing requirements.
This lack of regulation means that lottery businesses have not been paying licence fees and have been operating beyond the scope of governmental oversight.
The Ministry of Digital Transformation said rectifying this gap is essential not only for legal compliance but also for increasing tax revenue.
Officials estimate that up to UAH10bn is lost annually due to unlicensed and shadow operations in the gambling and lottery sector.Responsible gambling initiatives to be highlighted
Additionally, PlayCity has been given the authority to relaunch and integrate the national registry of problem gamblers with the Diia.Engine platform.
This integration will allow individuals to submit self-exclusion requests directly through the Diia mobile application, Ukraine’s government services portal.
This initiative is part of a broader effort to address gambling addiction and protect vulnerable individuals through accessible and streamlined digital tools.
A mission of the new agency is to purge the market of gambling enterprises connected to Russian interests.
This aligns with Ukraine’s broader national security objectives amid ongoing tensions and conflict with Russia.
Authorities view the elimination of such entities not only as a regulatory priority but also as a matter of national defence.
Leading PlayCity is Hennadiy Novikov, a legal expert with prior experience in public istration. Novikov formerly served as the deputy head of the secretariat at the Gambling Regulation Commission.
He played a role in previous enforcement actions, including efforts to combat illegal gambling. In 2024, over 4,500 unauthorised gambling websites were blocked under his initiative.
Furthermore, inspections led by Novikov resulted in nearly UAH18m in fines being imposed on non-compliant gambling operators.
The formation of PlayCity comes at a time when Ukraine is seeking to optimise its domestic revenue streams to broader governmental priorities, including defence.
By formalising and regulating the gambling industry through digital infrastructure and centralised oversight, the Ukrainian government expects to reclaim substantial tax income and mitigate illicit financial flows linked to both domestic and foreign entities.
The agency’s launch is being framed as a pivotal step in the transformation of Ukraine’s gambling and lottery sector into a transparent, able, and secure component of the national economy.
