Ukraine to dissolve gambling regulator, create new agency to oversee industry

The Ukrainian Commission for Regulation of Gambling and Lotteries (CRGL) will be dissolved on April 1, the Digital Transformation Ministry announced on March 25. A new state agency, PlayCity, will take its place, aiming to digitize gambling business licensing and strengthen oversight of the industry.

Ukraine’s gambling sector has faced persistent challenges, including weak regulatory enforcement, tax uncertainties, and the widespread presence of illegal operators. Many of these businesses have historical ties to Russia, with some under investigation or sanctioned by Ukrainian authorities.

The Digital Transformation Ministry said in a statement that CRGL had failed to effectively regulate the industry, prompting the government to launch reforms. PlayCity, which will operate under the ministry, is expected to introduce stricter controls and combat illegal gambling, including Russia-linked casinos.

The government hopes that revenue from legal gambling and lotteries will generate up to Hr 10 billion ($240 million) annually in taxes, which will be directed toward Ukraine’s defense needs.

“The reform will establish transparent rules for all market participants and ensure effective state oversight,” the ministry said. “It will help bring the industry out of the shadows and strengthen the Ukrainian economy.”

Gambling was banned in Ukraine in 2009 and remained illegal until its partial legalization in 2020. Law enforcement agencies are currently investigating more than 450 criminal cases related to illegal gambling operations.

In February, authorities detained the director of Pin-Up, a major Ukrainian online casino, over the company’s alleged ties to Russia. Investigators found that its real owners were Russian nationals who collected personal data from users, including Ukrainian military personnel.

Concerns over gambling addiction among Ukrainian soldiers have fueled public debate. In March, a petition calling for restrictions on online gambling reached the presidential office.

Last year, President Volodymyr Zelensky signed a decree restricting online gambling and banning military personnel from participating while martial law remains in effect.

Partial ceasefire in Ukraine should start on March 25, Zelensky says

“We believe that, after Washington makes two official statements... the ceasefire in the sea and the energy ceasefire must come into effect, in (the Americans’) opinion,” Zelensky said. “Undoubtedly this depends on orders given by the presidents to their military forces.”

The Kyiv IndependentKateryna Denisova