New Regulator PlayCity Shows Promising Performance in 2025

One of the key events in the gambling market last year was the emergence of a new regulator, PlayCity. It was established to streamline and strengthen regulatory mechanisms, automate the process of issuing and revoking gambling licenses, and combat illegal operators. In each of these areas, certain steps have already been taken, inspiring optimism about the future of regulation in the industry. However, to fully establish effective processes, many more changes across multiple areas are still required.

Recently, PlayCity reported on the first seven months of its operations and shared its achievements for 2025. In particular, the regulator succeeded in generating UAH 1.7 billion in license fees for the state budget, which is a solid result given the current challenges posed to businesses by the war in Ukraine.

Initial achievements have also been recorded in the area of controlling the online advertising space. Thanks to the joint efforts of the regulator, law enforcement agencies, and relevant online platforms, more than 280 pages of illegal advertising on social media were blocked.

The regulator’s achievements have also extended to combating illegal operators. Over seven months of work, the activities of more than 2,500 illegal online casinos were shut down. This figure indicates that appropriate mechanisms have been developed and effective IT solutions identified, enabling the rapid suspension of unlicensed gambling operators in the online segment.

For the first time in 11 years, concrete measures to regulate lotteries were finalized. At the end of last year, an open auction for obtaining lottery licenses was held. Although the auction conditions proved too strict for new potential entrants to the lottery market, they at least compelled the existing state lotteries to obtain licenses. Considering that over the past 11 years these lotteries had operated without licenses, paid no taxes, and even managed to imitate gambling activities, this marked a significant step forward.

However, despite these positive changes, genuine reform of the regulatory environment requires more radical actions. The launch of the State Online Monitoring System (SOMS) could become one of the key steps, but only if accompanied by parallel changes in other areas. These include, in particular, the unification of definitions for gross gaming revenue (GGR), winnings, and related concepts. Without such changes, the system risks becoming a mere formality that would effectively place licensed operators at a disadvantage compared to illegal ones, as the latter would continue operating without paying any contributions to the state budget.

A comprehensive approach that combines technological oversight with fair rules is the key to true de-shadowing of the sector and the creation of a favorable regulatory environment. This would not only protect players from fraud but also create conditions for economic growth in the market. Under favorable circumstances, the growth potential could reach UAH 30–40 billion in annual tax revenues. In the context of a full-scale war, these funds would certainly not be superfluous. Therefore, I sincerely hope that 2026 will become the year of reforms and the introduction of transparent rules necessary for the sustainable development of the gambling industry in Ukraine.