Ukrainian authorities established a new iGaming regulator to monitor operators, implement regulations, and enforce penalties. The move comes after the dissolution of the previous watchdog over corruption charges and ties to illegal Russian-origin online casinos.
Highlights of the Story
- The new iGaming regulator, PlayCity, replaces the Commission for the Regulation of Gambling and Lotteries (CRGL), which was dissolved on April 1, 2025.
- PlayCity will operate under the Ukrainian Cabinet’s direct supervision through Mykhailo Fedorov, the Deputy Prime Minister for Innovation, Education, Science, and Technology Development.
- The transition incorporates the infrastructure, employees, and finances of the old watchdog. The new agency will not only resume CRGL’s responsibilities but also operate with its 2025 state budget.
New iGaming Regulator Takes Over
According to an official statement from Ukraine’s Cabinet of Ministers, PlayCity will be the central executive authority for implementing state policies and regulating the gambling and lottery industry. Taras Melnychuk, the Cabinet’s representative, noted that the agency will coordinate directly with the Cabinet through Mykhailo Fedorov, the Deputy Prime Minister for Innovation, Education, Science, and Technology Development.
PlayCity will assume CRGL’s operational duties with 61 employees to match the previous regulator’s employment scale. It will also use existing CRGL infrastructure to commence iGaming industry operations. The agency can access CRGL’s 2025 state budget allocation of €3.39 million. The Ministry of Digital Transformation has already utilised a portion of this fund to establish the initial framework of the new regulator. The rest will be accessible to PlayCity.
Ukraine’s gambling industry has faced numerous challenges over the years. From weak regulatory enforcement to tax uncertainties and thriving illegal operators, the list has been pretty expansive. Many iGaming operators targeting Ukrainian consumers are tied to Russia. While some of them have been sanctioned by Ukrainian authorities, others are under active investigation.
According to a statement from the Digital Transformation Ministry, the CRGL had failed to execute its duties, prompting the government to initiate reforms. PlayCity is expected to introduce stricter resolutions to combat the rising trend of illegal online gambling. The government is hoping that the regulated gambling market will generate upwards of €210 million annually from taxes, which will be used to reinforce the country’s defence budget.
Building Trust in Domestic Gambling Circuits
One of PlayCity’s immediate responsibilities is setting up a national online monitoring system for licensed gambling operators. Moreover, licensing procedures will also be digitised. These measures are being implemented to improve transparency and simplify regulatory enforcement.
PlayCity will also digitise Ukraine’s registry of problem gamblers using Diia.Engine. Consumers can activate self-exclusion tools via the Diia mobile app. Ukraine’s iGaming restructuring efforts follow a series of administrative and legislative reforms in the gambling sector.
In December 2024, the Ukrainian Parliament passed a law dissolving the CGCL. The same law proposed a new regulatory body with enhanced regulatory responsibilities and authority. The government proposed provisions for increasing accountability among gambling operators and imposing a blanket ban on gambling advertisements.
President Volodymyr Zelenskyy signed Law No. 9256-d, which came into effect in January 2025. The decision to dismantle CGCL was primarily driven by accusations of corruption and wrongdoing. In 2024, Ivan Rudyi, the head of the CGCL, was arrested on charges of facilitating Russian-backed gambling platforms.
The grave charges shook the gambling sector, considering the region’s current sensitive geopolitical situation. Rudyi was imprisoned with no option for bail, indicating the gravity of the accusations. Further investigations into CGCL’s operations revealed previous instances of regulatory inadequacies.
Back in 2022, the National News Agency (UNN) reported that the CGCL had issued a gaming licence to Your Betting Company LLC, which was a front for the prominent Russian betting platform 1xBet. Despite public evidence and backlash at the time, the CGCL did not revoke the licence or investigate the firm’s Russian links.
Hennadiy Novikov Selected to Lead PlayCity
Hennadiy Novikov, a lawyer with a background in public administration and experience working at the gambling regulator’s secretariat, was appointed to lead PlayCity on April 8. Novikov is a staunch supporter of the Ministry of Digital Transformation’s policies for reform and is an active stakeholder in the government’s enforcement efforts.
In 2024, under Novikov’s supervision, the authorities blocked over 4,500 illegal gambling sites. His dynamic regulatory enforcement drives contributed €380,000 to state coffers in penalties. Novikov’s appointment as the head of PlayCity is a strategic move to build the agency’s reputation and stabilise the Ukrainian gambling industry.
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