The Cabinet of Ministers of Ukraine appointed Gennadiy Novikov to lead the new gambling regulator, PlayCity. The government announced his appointment through its official Telegram channel.
The curiously named PlayCity agency replaces the former gambling regulator KRAIL, established on April 1. It will work under deputy prime minister Mykhailo Fedorov. Moreover, it has a brief to protect Ukrainian gambling licensees and consumers from corruption.
As early as 2023, officials proposed dissolving KRAIL. In January, President Volodymyr Zelenskyy signed Law No. 9256-d to mandate the dissolution of the regulator.
During the war with Russia, the regulator has struggled to operate due to its collegial structure comprising a chairman and six members. Members serving in action commonly delayed license applications and other decisions, as five members need to be present at all meetings.
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 are with ties to Russia.
In December, the State Bureau of Investigation (SBI) announced that it had detained KRAIL director Ivan Rudyi. Authorities accused him of supporting the operations of a Russian-owned online casino in Ukraine and facing narcotics charges. He has been denied bail.
It’s not an entirely fresh start. One of the six members of KRAIL was Novikov. He also served as deputy head. Prior to that, he worked at the Ministry of Digitalization. PlayCity will inherit the 61 staff of KRAIL. It will also operate from the same office.
Nonetheless, officials expect it to strengthen oversight by implementing stricter controls to combat illegal gambling. This includes Russia-linked gambling operators. To improve efficiency, it will also digitalize the issuance of gambling licenses.
The government has allocated UAH 15m or €350,000 to the agency to finance investigations into corruption in the sector. In addition, the agency will have the power to block illegal gambling websites and expand the criteria for license revocations.
