The legalization of gambling in Ukraine in 2020 was accompanied by bold promises of “civilized regulation.” Five years later, the state is entering a new phase: a transition to a digital model of oversight and the liquidation of the former regulator. What has changed—and what opportunities are emerging for operators that comply with the law?
How It All Started: Market Launch in 2020
In July 2020, the Verkhovna Rada of Ukraine adopted the Law “On State Regulation of Activities Related to the Organization and Conduct of Gambling.” For the first time after a long-standing ban, gambling was legalized—including casinos, betting shops, slot machine halls, and online gambling platforms.
To oversee compliance, the Commission for the Regulation of Gambling and Lotteries (CRGL) was established. This body was authorized to issue licenses, supervise operators, and shape policy in the sector.
The law introduced strict requirements for operators: transparent ownership structure, financial capacity, internal compliance systems, and the implementation of AML/KYC policies (Anti-Money Laundering and Know Your Customer).
How the State Lost Control: Issues with CRGL
From 2021 to 2023, the CRGL faced growing criticism from members of parliament, civil society, and law enforcement agencies. The key complaints included:
- Slow and opaque licensing procedures;
- High corruption risks and discretionary decision-making;
- Inability to combat illegal online gambling, especially platforms operating from Russia.
By December 2023, there were only four licensed casino operators in Ukraine—far fewer than expected at the launch of the reform. The situation raised serious concerns about the viability of the existing regulatory model.
A New Regulator: Beginning of Reform
In December 2024, the Verkhovna Rada voted to liquidate the CRGL. In April 2025, the Cabinet of Ministers established a new executive authority—the State Agency “PlayCity”, which now serves as Ukraine’s central gambling regulator.
The agency reports to the Ministry of Digital Transformation and is coordinated by Vice Prime Minister Mykhailo Fedorov. Hennadii Novikov, a lawyer and former deputy head of the CRGL, was appointed to lead the agency.
Digital Oversight and Self-Regulation
One of PlayCity’s key objectives is to create a national online monitoring system for financial operations by gambling operators. This system will provide:
- Transaction tracking;
- Automated verification of website licensing status;
- Integration with the Security Service of Ukraine (SBU);
- Blocking of unlicensed platforms, especially those with ties to Russia.
A coalition of licensed operators—bringing together over 900 IT professionals—is currently working on the software architecture. This joint effort marks PlayCity’s first major step toward full digital regulation.
The agency also plans to:
- Digitize the licensing process;
- Integrate the problem gambler register into the government’s Diia mobile app;
- Launch self-exclusion tools for players online.
Interaction with Banks: A Financial Access Barrier
Despite operating legally, Ukrainian gambling operators frequently face banking refusals when opening accounts or accessing basic financial services. The core issue is the sector’s classification as high risk, which triggers enhanced compliance checks from financial institutions.
The absence of structured dialogue between the gambling industry and the financial sector remains a challenge—one that can be addressed through professional GR efforts and advocacy for legal operators’ interests.
What This Means for GR Professionals:
- Gambling regulation is entering a digital era, demanding attention to both legal and technological requirements;
- Robust AML/KYC compliance and transparent structures are now essential for licensing and partnerships with state institutions;
- The banking barrier represents a key advocacy issue—requiring structured GR engagement with regulators, ministries, and financial stakeholders.
The GR Consulting team closely monitors developments in the gambling sector and actively analyzes the impact of regulatory reforms and digital initiatives. We are open to cooperation with companies seeking to build effective communication with public authorities, financial institutions, and industry stakeholders. We are ready to offer strategic consulting and GR expertise tailored to your business goals.
