Ukraine’s Ministry of Digital Transformation has announced the creation of a new state agency, PlayCity, to control the gambling and lottery segments. The body was officially registered and began operating on March 21st, 2025.
The goal of this organisation is to make the industry as transparent and accountable as possible. The new authority will replace the previous ineffective commission, inheriting its functions and powers.
Objectives and Tasks of the State Agency
Key priorities include digital transformation and tightening oversight in the real-money gaming sphere.
PlayCity’s main areas of activity include the following:
- termination of shadow operators;
- automation of the casino licensing process;
- full-scale restart of the lottery market under government control;
- creation of a national online monitoring system for legal gambling companies.
As noted by the Ministry, the raffle segment currently functions outside the legal framework, without specialised permits. This situation results in significant budget losses and precludes proper government oversight.
The new agency is also responsible for optimising the national register of persons with signs of ludomania. It is planned to integrate this database with the Diia mobile app, allowing users to restrict themselves from access to gambling platforms for a chosen period.
Hennadiy Novikov has been appointed to lead the regulatory body. He is a lawyer and a former deputy head of the previous, disbanded commission.
In 2024, the expert played a key role in shutting down over 4,500 unlicensed iGaming portals and initiated the imposition of fines totalling approximately ₴18 million (about $430,000). Mr Novikov was officially appointed on April 8th.
Comments from the Ministry’s Representatives
The experts claim that annual losses to the state budget caused by the shadow market of gambling and lotteries amount to ₴10 billion (approximately $240 million).
Legalisation of the industry will significantly increase tax revenues. Additional funds released as a result of combating suspicious niche activities can be used to strengthen the country’s defence capability.
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