Ukraine's newly established national gambling regulatory body PlayCity recently submitted a draft proposal to reform the lottery licensing process, aimed at introducing a long-missing regulatory system while raising funds for the nation. According to the proposal, the annual license issuance fee is expected to reach 10 billion Ukrainian hryvnias (approximately 207 million euros), with revenues to support defense spending during the conflict with Russia.
The draft specifies the payment procedures, but the specific terms are still being determined during the public consultation phase. Additionally, the cabinet has incorporated wartime concession policies into the regulatory framework to adapt to the current martial law environment.
Operator Focus: Licensing and Compliance Requirements
With the establishment and regulatory restructuring of PlayCity, new compliance requirements have been introduced for operators. The agency, led by lawyer Hennadiy Novikov with public administration experience, has replaced KRAIL since June and has begun implementing enhanced regulatory measures, including fines for casino operators who fail to submit mandatory reports.
Operators should note that PlayCity is preparing a nationwide unified gambling monitoring system that will integrate both physical and online operators (including gaming venues, sports betting, and online poker platforms), enabling real-time tracking of bets, payouts, and prizes. This means operators must invest resources to interface with the new platform to ensure accurate and timely data upload, or they may face penalties.
New Player Protection Measures
The proposal also includes time limits and mandatory rest systems, requiring operators to proactively interrupt activities when players reach daily gaming thresholds. This will affect operational strategies, particularly the activity levels of frequent players and the distribution of platform revenues.
Further Legislative Movements
The Ukrainian government plans to introduce more supporting regulations, including:
Nationwide ban on gambling advertising
Establishment of a B2B license registration system
Expansion of PlayCity's authority to block unauthorized gambling websites
These measures will directly impact operators' market promotion, compliance investments, and platform accessibility.
Conclusion
From the perspective of operators, Ukraine's license reform and regulatory strengthening mean:
Competitive bidding may redistribute market shares;
Real-time monitoring systems require operators to upgrade technology and compliance processes;
Mandatory rest and advertising restrictions will affect revenue models and player behavior.
Despite significant challenges, these reforms also provide compliant operators with clear market entry conditions and long-term legal certainty. Operators who successfully adapt to the new system are expected to gain a sustainable development advantage in the Ukrainian market.
