Hennadiy Novikov named as head of new Ukrainian gambling regulator
Novikov will lead PlayCity, which replaces KRAIL as the Ukrainian gambling authority.
Ukraine.- Hennadiy Novikov has been named to lead PlayCity, the new Ukrainian gambling regulator. His appointment by the Cabinet of Ministers of Ukraine was announced via the government’s Telegram channel.
Established on April 1, the curiously named PlayCity agency replaces the former gambling regulator KRAIL. It will work under deputy prime minister Mykhailo Fedorov and has a brief to protect Ukrainian gambling licensees and consumers from corruption.
A proposal to dissolve KRAIL was tabled as far back as 2023. President Volodymyr Zelenskyy signed Law No. 9256-d in January to mandate the regulator’s dissolution.
The regulator had struggled to operate during the war with Russia because of its collegial structure comprising a chairman and six members. Since five members need to be present at all meetings, licence applications and other decisions were often delayed due to members serving in action.
KRAIL has also faced criticism for allegedly weak regulatory enforcement, tax uncertainties and the widespread presence of illegal gambling operators in Ukraine, some of them with ties to Russia.
In December, the State Bureau of Investigation (SBI) announced that it had detained KRAIL’s director Ivan Rudyi for allegedly supporting the operations of a Russian-owned online casino in the country as well as on narcotics charges. He has been denied bail.
It’s not a completely fresh start. Novikov was one of the six members of KRAIL and served as deputy head. Before that, he worked at the Ministry of Digitalisation. PlayCity will inherit KRAIL’s 61 staff and operate from the same office.
However, it will be expected to strengthen oversight, implementing stricter controls to combat illegal gambling, including Russia-linked gambling operators. It will also digitalise the issuance of gambling licenses to improve efficiency.
The government has allocated UAH 15m (€350,000) to the agency to finance investigations into corruption in the sector. The agency will also have the power to block illegal gambling websites and expand the criteria for licence revocations.
Meanwhile, there have been calls for the government to impose stricter limits on gambling in Ukraine, including spending limits. A blanket ban on gambling advertising is also being considered, along with a system to monitor payments and licences for B2B providers.
There remain unresolved disputes around gambling licensing in Ukraine. Some Ukrainian gambling operators now abroad are pushing for their licences to be reconciled amid the ongoing war with Russia. Some believe they have been unfairly blacklisted.
