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Ukraine has approved new state lottery regulations aimed at tightening oversight and bringing the gambling sector fully into the legal and accountable sphere. The Cabinet of Ministers passed a resolution introducing a modern licensing framework for operators as part of the country’s ongoing restructuring of lottery and gambling oversight.
The state regulator PlayCity and the Ministry of Digital Transformation reported that the new rules are intended to remove the industry from a long-standing “grey” operating environment. Previously, the lottery market was largely unregulated, with limited mechanisms for reporting, auditing, or enforcing compliance.
Under the new system, operators will pay annual licensing fees, totalling more than 67 million hryvnias from the country’s three current license holders. Licensing will now take place exclusively through transparent and open competition, replacing discretionary or opaque approvals.
A significant structural change will be the introduction of a unified electronic accounting system. This platform will record wagers, ticket sales, and payouts in real time, allowing regulators to strengthen control and reduce tax leakage. Every lottery ticket and terminal will be issued a unique QR code, enabling verification of the point of sale and ensuring the legality of all equipment used in operations.
Officials from the Ministry noted that these licensing rules represent the first phase of broader reforms. They stressed that amendments to the legislation governing state lotteries are required, as the current law provides few grounds for inspections, penalties, or license revocation. Under older rules, Ukraine’s existing operators could continue functioning for up to ten more years with virtually no regulatory pressure.
To bridge that gap, the new licensing terms will apply throughout the period of martial law and for more than one year after its conclusion, for a total of at least 3 years. This timeframe is expected to allow the government to develop updated laws, foster competition, curb monopolistic conditions, and open the market to international investment.
PlayCity has set September 1, 2025, as the official relaunch date for Ukraine’s lottery market under the revamped controls. These reforms come amid a significant institutional shift in Ukraine’s gambling sector. The Commission for the Regulation of Gambling and Lotteries, known as KRAIL, is being dissolved. The Verkhovna Rada approved Law No. 9256-d on December 4, 2024, to strengthen market control and create a new supervisory body.
President Volodymyr Zelensky signed the law on January 4, 2025. On March 21, the government formed the new state agency PlayCity under the Ministry of Digital Transformation, and on March 25, KRAIL’s powers were formally transferred. PlayCity is now led by Hennadiy Novikov, who previously served as the deputy head of KRAIL’s administrative office.
Officials credit Novikov for significant progress in suppressing illegal online gambling. In 2024, authorities blocked more than 4,500 black-market gambling websites and conducted compliance inspections, resulting in fines totaling nearly 18 million hryvnias.
PlayCity began full operations on June 2, and government authorities say the reforms mark a foundational shift toward transparent oversight, higher accountability, and a gambling sector attractive to international investors.
