Ukraine Advances Gambling Reform with Transparent Funding Model for Online Monitoring System Phase Two

Ukraine is accelerating the modernization of its gambling sector with a new, transparency-driven approach to funding the second phase of its State Online Monitoring System (SOMS), a cornerstone initiative aimed at strengthening regulatory oversight and combating illegal operations.

Following the establishment of the PlayCity regulator, authorities have taken significant steps toward legalizing lottery operations, refining licensing procedures, and tightening enforcement against unlicensed operators. Central to these efforts is the SOMS, designed to deliver real-time tracking of bets and payouts while ensuring accountability across the market.

As part of the broader gambling reform agenda—alongside ongoing tax changes—the full deployment of SOMS is expected to enhance market transparency and improve Ukraine’s appeal to international investors. Since the early stages of legalization, officials have emphasized the importance of clear and consistent “rules of the game” to build a sustainable and credible industry.

Development of the system is already underway. PlayCity previously awarded the contract for SOMS creation to Computer Information Technologies through a public tender process. Despite scrutiny and reported delays, the platform is currently operating in test mode, capturing transaction data in real time. Earlier this year, the government also appointed the state enterprise Diia as the system’s technical administrator, marking a key milestone toward nationwide implementation.

In a move to further reinforce transparency, the government has shifted the financing of SOMS phase two to the DREAM platform—a public investment management system that allows citizens and stakeholders to monitor how funds are raised and allocated. This approach is expected to strengthen public trust and ensure full visibility over project spending.

According to industry estimates, the second phase will require approximately 45 million hryvnias—nearly double the cost of the initial phase, which totaled 25.9 million. Authorities believe that leveraging a transparent funding mechanism will not only improve accountability but also signal a broader commitment to open governance within the gambling sector.

The next stage of SOMS development will introduce advanced features, including game outcome tracking, slot machine monitoring, enforcement of responsible gambling standards, and oversight of transactions involving digital gaming equivalents of the hryvnia. Full implementation is scheduled for October 2026, in line with the government’s original timeline.

Officials stress that completing the second phase is not optional but essential for ensuring a fair and transparent market. With the integration of DREAM, every investment in the system will be subject to public scrutiny—just as every transaction within the gambling ecosystem will be monitored. The result is expected to be a more accountable regulatory framework, increased public trust, and a level playing field for compliant operators.