Ukraine Institutes Gaming Authority for Enhanced Supervision over Gambling Activities
In an effort to curb illicit gambling activities and modernize its gambling legislation, the Ukrainian government has established a new state agency called PlayCity. This central executive body, under the supervision of the Ministry of Digital Transformation, aims to digitize the gambling licensing process and implement stringent market oversight [1].
PlayCity will occupy the same premises as the Commission for the Regulation of Gambling and Lotteries (KRAIL), facilitating a smooth transition process. The agency will employ 61 individuals, similar to the positions eliminated from KRAIL [2].
The main goals of PlayCity include expanding the regulated gambling market, increasing state revenue through taxation, and reducing illicit gambling activities by bringing operators under official licensing and supervision [3]. The digitalization of the gambling sector is expected to eliminate corruption, make the market more transparent, and increase budget revenues.
However, concerns have been raised about PlayCity's transparency and effectiveness. Critics argue that the regulator has been reluctant to disclose data about the scale of gambling addiction and financial turnover within the gambling sector [1][2]. This lack of disclosure complicates assessing the regulator’s true impact on controlling the market or addressing problem gambling.
Regarding its impact on illicit gambling and corruption, while the legalization and regulation via PlayCity ideally aim to reduce illegal gambling by channeling players to licensed operators, there is limited publicly available evidence confirming significant reductions in illegal activity so far. However, agencies connected to PlayCity have taken steps to combat illicit online promotion. For example, they have collaborated with platforms like Meta to block Instagram accounts that were promoting unauthorized online casinos, demonstrating active efforts to control unauthorized advertising and reduce illegal operations [5].
The new restrictions on gambling advertisements in Ukraine will become effective on 1 April. These restrictions prohibit marketing materials targeting individuals under 21 and the use of military personnel in gambling ads [4].
The success of these gambling reforms in Ukraine will be closely monitored, with a focus on ensuring compliance and tackling illegal gambling activities, particularly those linked to Russian companies. The prevalence of black market operators in Ukraine drains vital resources from the country and offers minimal consumer protections [6]. Up to UAH 10 billion is lost by the state due to the shadow market [7].
It is important to note that all gambling-related transactions in Ukraine must now pass through traditional banks, effectively banning other payment methods like cryptocurrencies [8]. PlayCity will utilize funding previously allocated to KRAIL for its operations [1].
The launch of PlayCity is part of Ukraine's ongoing efforts to modernize its gambling legislation. As the agency continues to develop and implement its operational guidelines, it remains to be seen whether it will achieve its intended goals of increasing transparency, mitigating gambling-related harm, and preventing illegal financial activities.
References:
- Ukraine's New Gambling Regulator PlayCity Launched
- Ukraine's New Gambling Regulator PlayCity: What We Know So Far
- Ukraine's New Gambling Regulator PlayCity to Focus on Transparency and Consumer Protection
- Ukraine's New Gambling Regulator PlayCity Announces New Advertising Restrictions
- Ukraine's PlayCity Blocks Instagram Accounts Promoting Unauthorized Online Casinos
- The Shadow Market: Ukraine's Black Market Gambling Problem
- Ukraine's Shadow Market Gambling Problem Costing Billions
- Ukraine Bans Cryptocurrency Payments for Gambling Transactions
PlayCity, the recently established Ukrainian gambling regulator, aims to increase transparency and reduce illicit activities in the casino-and-gambling sector by expanding the regulated market and implementing stricter market oversight. Despite critics' concerns about PlayCity's disclosure of data regarding gambling addiction and financial turnover, agencies connected to PlayCity have taken steps to combat illicit online promotion, such as blocking Instagram accounts promoting unauthorized online casinos.
