New Ukraine gambling regulator PlayCity now operational
The Ministry of Digital Transformation has confirmed that priorities will be the digitisation of the licensing process, and the launch a national gambling monitoring system.
Ukraine.- The Ministry of Digital Transformation has announced that new Ukrainian gambling regulator, PlayCity, is now operational. It said the agency’s initial priorities will be to digitise the gambling licensing process, launch a national online monitoring system to oversee regulated gambling operators in real time, tackle illegal gambling establishments and resume regulation of the lottery market.
PlayCity’s responsibilities will also include relaunching the problem gamblers register by integrating it into the government’s web portal and mobile app Diia.Engine, enabling players to submit self-exclusion requests via the Diia app. Another major objective is to eradicate gambling operations with ties to Russia from the Ukrainian market, Ministry of Digital Transformation said.
“The State Agency PlayCity is now operational. Its goal is to make the gambling and lottery market transparent and accountable. PlayCity was established to replace the ineffective Commission for the Regulation of Gambling and Lotteries,” the ministry said in a statement. “Currently, the lottery business is operating without licensing requirements, which means it doesn’t pay license fees and isn’t subject to government oversight,” the ministry noted.
It added: “Every year, the national budget loses up to UAH 10 billion (€211.2m) in taxes due to the shadow gambling and lottery market. Bringing this sector out of the shadows will generate a significant boost in tax revenues, which can then be directed toward strengthening the country’s defense,” the statement added.
The head of the new state agency is Hennadiy Novikov, a lawyer with public administration experience. He previously served as deputy head of the Gambling Regulation Commission (KRAIL) and supported Ministry of Digital Transformation’s dismantling of the former regulator.
In his previous role, Novikov initiated the process of blocking illegal online casinos and facilitated inspections of gambling operators for legal compliance, the ministry said.
The Cabinet of Ministers established PlayCity in March and named Novikov as director on April 8. Last month, it endorsed new powers for body. The regulator will have the authority to request the application of restrictions against unlicensed gambling websites and mobile applications and to issue recommendations for gambling operators regarding responsible gaming practices.
PlayCity is also expected to implement time limits and mandatory breaks, requiring operators to interupt customer play with scheduled pauses to prevent players from engaging in continuous gaming beyond a specified daily threshold. Players must also be allowed to set voluntary personal spending limits for gambling on a per day, per week or per month basis. Players will be allowed to change the limits no more than once every 30 days.
The new regulator will work under deputy prime minister Mykhailo Fedorov and has a brief to protect Ukrainian gambling licensees and consumers from corruption. The government decided to disband KRAIL due to several issues. The regulator had struggled to operate during the war with Russia because of its collegial structure comprising a chairman and six members. KRAIL 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.
Meanwhile, Russia’s lower house, the State Duma, has approved the first reading of a bill that would introduce a Russian gambling self-exclusion programme. The initiative would allow people to voluntarily enrol via the state services portal to exclude themselves from placing bets at casinos and bookmakers for a minimum of 12 months.
