The Ukrainian Ministry of Digital Transformation has announced that the new gambling regulatory authority, PlayCity, has officially commenced operations. As a replacement for the previous Gambling Regulatory Authority (KRAIL), PlayCity's primary tasks include digitizing the gambling licensing process, activating a national gambling monitoring system, rectifying illegal gambling venues, and restoring effective regulation of the lottery market.
The new agency plans to fully implement a self-exclusion system for problem gamblers and integrate it into the government portal and the Diia app, facilitating users to submit self-restriction requests. Additionally, PlayCity will focus on cracking down on gambling businesses related to Russia and clearing the market's gray areas.
The Ministry of Digital Transformation stated in its declaration: "The establishment of PlayCity aims to enhance the transparency and accountability of the gambling and lottery industries, addressing severe deficiencies in the old regulatory framework concerning regulation and enforcement." Currently, Ukraine's lottery business can operate without a license, neither paying licensing fees nor being subject to official regulation. This situation leads to annual losses of up to 10 billion Ukrainian hryvnias (approximately 211.2 million euros) in gambling tax revenue.
The new head, Hennadiy Novikov, who previously served as the vice-chairman of KRAIL and has a background in public administration, was involved in early actions against illegal online casinos. The cabinet decided to establish PlayCity in March this year and officially appointed Novikov as the director on April 8. Last month, the cabinet further granted him enhanced regulatory powers, including the ability to block unauthorized gambling websites and apps, and to provide industry advice on responsible gambling practices.
PlayCity will also implement strict policies on gaming time and spending limits, such as mandatory break mechanisms and daily caps, to prevent player addiction. Players can set daily, weekly, or monthly gambling spending limits based on personal circumstances and modify them every 30 days.
PlayCity will operate under the leadership of Deputy Prime Minister Mykhailo Fedorov, with its main mission being to protect licensed operators and consumers from corruption. The previous KRAIL was dissolved due to issues such as structural rigidity, unclear tax regulation, and the prevalence of Russian-funded gambling enterprises.
