A group of licensed online casino operators in Ukraine has come together to develop software for detecting illicit gambling sites that target Ukrainian players. The effort is part of a broader initiative to curb the rising trend of unlicensed gaming sites, particularly those backed by Russia.
Highlights of the Story
- The software will help authorities identify operators falsely claiming to be local businesses.
- According to the group behind the initiative, over 50 illegal gambling sites currently operate in Ukraine.
- This collaborative effort is PlayCity’s first major initiative for modernising Ukraine’s digital gambling legislation and ensuring player safety.
Operators Pool in Effort to Assist the Gambling Regulator
Since the Ukraine-Russia war began, Ukraine’s digital services have grown rapidly, often moving faster than the laws meant to govern them. Recently, a controversy has surfaced around KRAIL, the country’s former gambling regulator, which is being accused of showing favouritism toward some unlicensed gambling companies, including a few said to have ties to Russia.
Like many younger jurisdictions, Ukraine has faced the onslaught of unlicensed gambling sites mushrooming in its digital space. This not only raises concerns about player safety, but also undermines progress made in the regulated gaming sector. After a massive reshuffle, Ukraine’s new gambling regulator PlayCity has taken up the reins from KRAIL.
Gambling operators have also congregated to assist the government in its efforts to prohibit illegal gaming sites. A new group, comprising Ukrainian IT professionals, has come together to create digital solutions for identifying and tracking illegal gambling sites operating in Ukraine under the guise of local businesses.
The group reportedly has over 900 members, all working to solve Ukraine’s rising offshore gambling problem, in what might as well be the world’s first operator-backed effort to push back against unlicensed gambling operations.
The group now plans to focus their attention on black market gambling operations. The motivation behind such actions is often rooted in patriotism, amid concerns that illegal gambling platforms may be used by Russian-linked groups to collect funds from Ukrainian users and potentially support hostile activities. The group will closely coordinate with PlayCity and SBU, the Ukrainian Security Service, to weed out illegal gambling operators.
Over 50 Unlicensed Gambling Sites Operating in Ukraine
According to the group, over 50 illicit gambling operators are active within the Ukrainian borders. Their official statement claims:
“More than 50 unlicensed gambling companies continue operating within the Ukrainian digital space. Many of them operate under the guise of local businesses but are controlled from within the Russian Federation and do not have a valid gambling licence.”
The ongoing menace of unlawful gambling has raised severe concerns about consumer protection, tax evasion, and direct links to hostile neighbours. This issue has raised red flags among Ukraine’s top brass, who are making an effort to locate and eliminate businesses tied to Russia. President Volodymyr Zelensky has repeatedly banned entities with Russian connections, leaving brands hanging in the crossfire.
PlayCity, meanwhile, has stepped up efforts to bring up its entire security network. This includes a self-exclusion register, which will now be updated and enforced regularly.