Bids open for new Ukraine lottery licences
New regulations mean that only licensed operators will be able to run lotteries in Ukraine.
Ukraine.- The Ministry of Digital Transformation has announced that the new national gambling regulator PlayCity has launched a competitive tender for licences to run lotteries in Ukraine. The move will bring a currently unregulated sector under PlayCity’s oversight.
The announcement comes after PlayCity began issuing gambling licences in Ukraine in recent months as part of its shake up of the sector. The regulator made a draft proposal for a lottery tender in September, in which it said outlined an aim to generate UAH 10bn (€207m) a year in licensing fees, with revenue to be directed toward defence amid the war with Russia.
The Cabinet of Ministers approved the proposal in late November, paving the way for the first lottery tender in Ukraine in over a decade.
Ukraine re-legalised gambling in 2020, following as prohibition that was introduced after a fire at a gaming hall in 2009. Lotteries remained legal even throughout the period of prohibition but since 2015 have operated in what the government has described as a “grey area” without paying licence fees and with little tax oversight.
That’s because former operators MSL and Patriot were hit with sanctions after being implicated in corruption scandals and accused of laundering money for Russian partners. Their exit in 2015 left the market with no formal licensees.
Ukraine lottery applications criteria
Under the new rules, only licensed firms will be permitted to run lotteries. Operators must provide electronic reporting and enable real-time monitoring of ticket sales and payouts. Each ticket and terminal will carry a unique QR code to verify its origin and ensure the legality of equipment.
PlayCity has invited Ukrainian companies, particularly those with international experience, to apply for licences. Applicants must meet several criteria:
- At least three years of experience in the lottery or gaming industry
- A website registered under a .ua domain
- Minimum authorised capital of UAH30m (around €600,000)
- No direct or indirect ties to Russia
Applications must be submitted by December 29. PlayCity will announce the winners within 15 business days of the deadline. Successful applicants will then have 10 days to finalise their licences and pay fees.
Deputy minister Natalia Denikeeva described the initiative as a complete reset for the lottery industry. She said: “The time for us to start a market where the initial conditions are the same for all is finally here. A competitive environment will be established around, in which old schemes will no longer win, but quality, technology and compliance with the law.
“That is a new starting point for the lottery market. Players will for the first time know that every ticket, every draw and every payout is verified, legal and secure.”
PlayCity replaced KRAIL as the body responsible for gambling regulation in Ukraine in June. Under Hennadiy Novikov, its mandate includes establishing a new national monitoring system for gaming in Ukraine.
