Ukraine launches PlayCity to regulate gambling market

In a major step toward reforming its gambling and lottery industry, the Ukrainian government has announced the official launch of a new state agency named PlayCity. This newly established institution is designed to take full control over the gambling and lottery sectors, replacing the now-defunct and widely criticized Commission for the Regulation of Gambling and Lotteries.

The launch of PlayCity reflects a broader digital reform effort by Ukraine's Ministry of Digital Transformation, aiming to increase transparency, ensure government oversight, and eliminate illegal gambling operations that have proliferated in recent years. With a clear mandate and a technologically forward-looking agenda, PlayCity is positioned as a cornerstone of Ukraine’s effort to establish a lawful and ethical gambling environment.

Background: The rise and fall of the former gambling regulator

Prior to the creation of PlayCity, gambling regulation in Ukraine was the responsibility of the Commission for the Regulation of Gambling and Lotteries (CRGL). The CRGL, established in the wake of Ukraine's legalization of gambling in 2020, was intended to provide oversight and ensure legal compliance among operators.

However, the commission faced persistent criticism over its inefficiency, lack of transparency, and inability to effectively regulate the growing gambling sector. These issues included delays in licensing, inconsistent enforcement, and failure to address illegal operations. Critics also pointed to the absence of meaningful consumer protection mechanisms, especially for vulnerable individuals susceptible to gambling addiction.

As the shortcomings of the CRGL became increasingly apparent, the Ministry of Digital Transformation took the initiative to develop a more effective and digitized approach to regulation. This led to the conceptualization and eventual establishment of PlayCity.

Objectives of PlayCity: Transparency, accountability, and digitization

According to an official statement by the Ministry of Digital Transformation, PlayCity has been tasked with a wide range of responsibilities aimed at ensuring the gambling and lottery markets operate under clear, enforceable, and transparent legal standards.

Digitizing the licensing process

One of the primary reforms introduced under PlayCity is the digitization of the licensing process for gambling operators. By eliminating bureaucratic bottlenecks and manual paperwork, the agency intends to make it faster and more efficient for legal gambling companies to obtain and maintain their licenses. The streamlined system is expected to reduce opportunities for corruption and increase the overall accountability of industry participants.

National online monitoring system

A cornerstone of PlayCity’s oversight mechanism will be a new national online monitoring system. This digital infrastructure will allow the agency to oversee legal casinos and gambling activities in real-time, ensuring compliance with regulatory norms. By tracking activities digitally, PlayCity aims to prevent financial fraud, money laundering, and other illegal practices that have historically plagued the industry.

Combating illegal gambling operations

Illegal gambling remains a significant problem in Ukraine, with thousands of unlicensed online platforms operating outside any regulatory framework. These platforms often avoid taxes, provide no consumer protection, and operate in violation of Ukrainian laws.

PlayCity has been charged with the responsibility of identifying and eliminating such operations. The agency will work in cooperation with law enforcement and digital platforms to block unauthorized websites and shut down unlicensed venues.

In 2024 alone, prior to the launch of PlayCity, more than 4,500 illegal gambling websites were taken offline through the efforts of government authorities, spearheaded in large part by Hennadiy Novikov—who now serves as the head of the new agency.

Regulating and relaunching the lottery market

Another key responsibility of PlayCity is the revival and regulation of the Ukrainian lottery market. According to the Ministry of Digital Transformation, the lottery sector is currently operating in a legal grey zone, with no enforced licensing requirements. This means many operators are not paying license fees and are not subject to formal government oversight.

By introducing a licensing regime for lotteries, PlayCity intends to ensure that operators are contributing to state revenues and adhering to strict ethical and legal standards. This initiative is expected to generate new streams of tax revenue and eliminate unregulated practices that have flourished in the absence of oversight.

Promoting responsible gambling and protecting vulnerable groups

The Ministry has also emphasized the importance of consumer protection, particularly for individuals suffering from gambling addiction. A critical step in this direction is the reintroduction of the problem gamblers registry. PlayCity will integrate this registry with Diia.Engine, the country’s e-governance platform, making it accessible through the Diia mobile application.

Through this integration, individuals will be able to self-exclude from gambling platforms quickly and securely. This measure is intended to promote responsible gambling habits and offer protection to those at risk of developing gambling-related problems.

Leadership and vision: Hennadiy Novikov’s role

At the helm of PlayCity is Hennadiy Novikov, a lawyer with a professional background in public administration and regulatory affairs. Novikov previously served as the deputy head of the CRGL secretariat and was instrumental in many of the reforms that laid the groundwork for PlayCity’s establishment.

His prior experience includes initiating the shutdown of illegal online casinos and implementing regulatory inspections of gambling operators. According to the Ministry of Digital Transformation, his leadership in 2024 alone resulted in the closure of over 4,500 illegal platforms and nearly UAH 18 million in fines levied against non-compliant operators.

Novikov’s appointment has been widely regarded as a strategic choice aimed at ensuring continuity, expertise, and integrity in the new agency’s operations. His familiarity with both the challenges and intricacies of the gambling industry positions him to steer PlayCity through a transformative period of regulatory reform.

Legal and economic implications

The establishment of PlayCity also has broader implications for Ukraine’s legal and economic frameworks. By creating a transparent and accountable regulatory environment, the government aims to:

• Enhance public trust in the legitimacy of the gambling sector.
• Attract responsible international investment from licensed operators.
• Increase tax revenues from legal gambling businesses.
• Create a digital infrastructure that can serve as a model for regulatory reform in other sectors.

Moreover, the agency’s digitized approach aligns with Ukraine’s broader strategy of e-governance and modernization, signaling a commitment to international best practices in transparency and regulatory compliance.

Challenges ahead

While the launch of PlayCity marks a significant step forward, its long-term success will depend on continued political will, adequate funding, and strong inter-agency coordination. The enforcement of new regulatory standards will require consistent monitoring, effective legal tools, and cooperation between various arms of government, including law enforcement and cybersecurity agencies.

Additionally, ensuring that the agency operates independently and free from political or commercial influence will be critical to maintaining public confidence and achieving meaningful reform.

Conclusion

The launch of PlayCity represents a landmark development in Ukraine’s ongoing efforts to reform and regulate its gambling and lottery markets. With a strong legal framework, digital infrastructure, and a renewed focus on transparency and consumer protection, the agency has the potential to transform an industry that has long operated in the shadows.

Led by experienced professionals and backed by the Ministry of Digital Transformation, PlayCity stands as a symbol of Ukraine’s commitment to lawful governance, ethical industry practices, and modern regulatory solutions. While challenges remain, the agency’s proactive and digital-first approach offers a promising path forward.

FAQs

What is PlayCity in Ukraine?
PlayCity is a newly launched state agency responsible for regulating the gambling and lottery sectors in Ukraine, aiming to enhance transparency and oversight.

Why was the previous gambling regulator replaced?
The Commission for the Regulation of Gambling and Lotteries was replaced due to inefficiency, lack of transparency, and failure to curb illegal operations.

What are the main goals of PlayCity?
PlayCity aims to digitize the licensing process, implement real-time monitoring, regulate the lottery sector, and eliminate illegal gambling activities.

Who is leading PlayCity?
PlayCity is headed by Hennadiy Novikov, a legal expert with public administration experience and a track record in regulatory enforcement.

How will PlayCity combat illegal gambling?
The agency will use digital tools and collaborate with law enforcement to identify, block, and shut down unauthorized gambling operations.

Will the lottery sector be regulated under PlayCity?
Yes, PlayCity will establish licensing requirements and regulatory standards for lottery operators, which are currently unregulated.

How does PlayCity promote responsible gambling?
PlayCity will relaunch the problem gamblers registry and integrate self-exclusion functionality into Ukraine’s Diia digital platform.

What is the Diia app’s role in gambling regulation?
The Diia app will allow individuals to submit self-exclusion requests and access gambling regulation services through an integrated platform.

What economic impact is expected from PlayCity’s activities?
By regulating the sector and ensuring compliance, the agency is expected to increase state revenues and attract responsible investment.

How does PlayCity support digital governance in Ukraine?
PlayCity aligns with Ukraine’s broader digital transformation goals by using technology to create a more transparent and accountable regulatory environment.