On March 25, the Digital Transformation Ministry announced that it will dissolve the Ukrainian Commission for Regulation of Gambling and Lotteries (CRGL) on April 1. Aiming to digitize gambling business licensing and strengthen oversight of the industry, PlayCity, a new state agency will take its place.
The gambling sector of Ukraine has faced persistent challenges. These include weak regulatory enforcement, tax uncertainties, and the widespread presence of illegal operators. With some under investigation or sanctioned by Ukrainian authorities, many of these businesses have historical ties to Russia.
Prompting the government to launch reforms, the Digital Transformation Ministry said in a statement that CRGL had failed to effectively regulate the industry. PlayCity will operate under the ministry. The new agency expects to introduce stricter controls and fight illegal gambling. This include Russia-linked casinos.
The government hopes that revenue from legal gambling and lotteries will generate up to Hr 10 billion or $240 million yearly in taxes. Authorities will direct these toward Ukraine’s defense needs.
The ministry said that the reform will establish transparent rules for all market participants and ensure effective state oversight. It will help bring the industry out of the shadows and strengthen the Ukrainian economy.
In 2009, Ukraine banned gambling and kept it illegal until partially legalizing it in 2020. Currently, law enforcements are investigating more than 450 criminal cases related to illegal gambling operations.
Authorities detained the director of Pin-Up in February over the alleged ties of the company to Russia. It is a major Ukrainian online casino. Investigators found that its real owners were Russian nationals who collected personal data from users. These include Ukrainian military personnel.
Public debate has fueled concerns over gambling addiction among Ukrainian soldiers. A petition calling for restrictions on online gambling reached the presidential office in March.
President Volodymyr Zelensky signed a decree in 2024 restricting online gambling, as well as banning military personnel from participating while martial law remains in effect.
