Ukraine's new regulator PlayCity: What the experts say
On 25 March, the Ministry of Digital Transformation announced the discharge of the Gambling and Lotteries Regulatory Commission (CRGL) on 1 April and the creation of its replacement, regulator PlayCity. The new state agency within the Ministry’s department prioritises the digitalisation of gambling licensing and increased oversight of the industry. This reform helps to strengthen the legal gambling market and Ukraine’s economy.
PlayCity’s goals and priorities
According to the Ministry’s official statement, CRGL’s regulation of the gambling industry was not effective and required serious changes. In particular, law enforcement authorities are now investigating more than 450 criminal cases related to illegal gambling activities. The decision to liquidate CRGL was made back in April 2024 and was approved after the relevant presidential decree was issued. However, the commission’s team is almost entirely transferred to PlayCity, along with its previously allocated funding and headquarters.
PlayCity was created to oversee the implementation of state policies regarding casino and lottery operators more closely. This could further boost tax revenues to Ukraine’s budget. According to preliminary estimates, legal operators could bring in up to $240 million in additional taxes per year. The reform is designed to establish transparent rules for all market participants and ensure effective government oversight. The Ministry explains: ‘This step favours the industry’s exit from the shadows and the strengthening of the Ukrainian economy.’
The next steps are to select the head of the state agency and approve the rules of the institution, according to Deputy Minister of Digital Transformation Oleksandr Bornyakov.
Experts’ comments
The head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev, welcomed the creation of the agency and guaranteed support from the Committee. At the same time, in his Telegram channel, he expressed bewilderment over the name of the new regulator, ‘PlayCity’, which is consonant with the name of the operator. According to Borniakov’s comment on Facebook, the idea of this name appeared quite a long time ago, and its author may be Mikhail Fedorov, the Minister of Digital Transformation of Ukraine.
In conclusion, Bornyakov expressed confidence that these changes will help ‘eradicate corruption, bring to zero the activities of illegal casinos and provide significant tax revenues from the legal gambling market to the state budget.’
This article was first published in Russian on 26 March 2025.
