Ukraine Moves Forward with State Online Monitoring System to Strengthen Gambling Regulation

The introduction of the State Online Monitoring System (SOMS) in Ukraine’s gambling sector has been discussed since the beginning of industry reform. Yet, despite being a top priority alongside tax legislation, the issue remained unresolved for over five years. Although some progress was made in late 2023 when the government reinforced the legal framework for SOMS, concrete implementation steps only began recently.

The state regulator PlayCity has officially signed an agreement with Computer Information Technologies LLC, the winner of an open tender, to develop and implement the SOMS. The system’s first phase is expected to launch in December 2025, with full implementation planned for October 2026.

Once operational, the SOMS is expected to be a pivotal step toward building a transparent and sustainable gambling market in Ukraine. The system aims to achieve three main objectives:

Curb the grey market by reducing unregulated lottery activity, thereby increasing state tax revenues.

Enhance player safety and responsible gaming, enabling real-time tracking of interactions between operators and players to quickly identify abuses or problem gambling behaviors.

Improve financial transparency, preventing manipulation of data regarding actual revenues in the legal gambling market.

However, experts caution that the SOMS can only deliver its full potential if accompanied by tax reforms and the standardization of key legal definitions such as “winnings” and “GGR.” Without these updates, the system could unintentionally create compliance challenges for legitimate operators.

Despite remaining legislative gaps, the launch of the SOMS marks a positive shift. It reflects the regulator’s growing commitment to establishing a modern, transparent, and responsible gaming environment—one that benefits the state, players, and licensed operators alike. Continued systematic reform across all regulatory fronts will be essential to ensure the long-term stability and credibility of Ukraine’s gambling market.