The Ministry of Digital Transformation aims to pull the majority of play out of the shadow market. It also seeks to fully implement the 2020 legislation. To achieve this, Ukraine is preparing a sweeping digital overhaul of its gambling and lottery sector.
Natalia Denikeieva, Deputy Minister of Digital Transformation, says the reforms will replace a fragmented and outdated system. The new approach will use data-driven supervision and set clear rules for both operators and players. Officials estimate that up to 60% of gambling still takes place in illegal or grey channels. She aims to cut that share roughly in half within the next year or two.
In 2020, under Law 768-IX, Ukraine re-legalized gambling. The law created a framework for online casinos, betting, land-based casinos, and lotteries. It also established KRAIL, the Commission for Regulation of Gambling and Lotteries, as the national regulator.
Yet, the implementation lagged in practice.
IIn early 2025, the government dissolved KRAIL for multiple reasons and transferred policy leadership to the Ministry of Digital Transformation. The ministry created PlayCity, a new regulator, to handle licensing, supervision, and enforcement across gambling and lotteries.
Denikeieva has been blunt about the starting point. In interviews with local and industry media, she described the post-2020 regime as a set of disparate elements that do not work together in practice. She said this leaves too much room for illegal operators and provides too little benefit to the state budget.
The overhaul will enforce a full digitalization of licensing and supervision. PlayCity is launching an online portal that offers standardized forms, automated checks, and clear service levels. This replaces physical applications and subjective case-by-case decisions.
The system will collect data on stakes, payouts, game sessions, and customer behavior. Once fully rolled out, it will give regulators a single view of the legal market for the first time.
