In a decisive move to modernize its gambling regulatory framework and strengthen national oversight, Ukraine has officially launched PlayCity, a new state-run regulatory agency under the Ministry of Digital Transformation. Tasked with increasing transparency, stamping out unlicensed operations, and ensuring that gambling contributes to the nation’s budget and defense, PlayCity also takes on the critical mission of combating addiction and cutting ties between gambling businesses and Russian entities. As the agency begins operations, it signals a significant transformation in how Ukraine monitors and governs its fast-growing betting and lottery sector.

PlayCity: Ukraine’s New Regulatory Powerhouse

With its establishment in March, PlayCity replaces the country’s previous regulatory authority and comes armed with a digital-first strategy. The new agency’s leadership is under the stewardship of Hennadiy Novikov, a public administration expert and former deputy head of the now-defunct Gambling Regulation Commission. His appointment underscores the government’s focus on professionalizing oversight and enhancing legal compliance in a sector long plagued by opacity.

The agency's foundational strategy centers on the implementation of a national online monitoring system, a digital infrastructure designed to track and supervise all licensed gambling operations in real time.

Real-Time Monitoring System to Improve Compliance

At the core of PlayCity’s agenda is the rollout of a centralized online platform that enables 24/7 monitoring of gambling activity across Ukraine. This system will provide regulators with direct, real-time access to casino operations, ensuring prompt enforcement of licensing terms and tax compliance.

By digitizing the sector’s operational data flow, authorities hope to crack down on unauthorized venues and irregularities. This is especially important in curbing Ukraine’s growing “shadow market,” which reportedly costs the state nearly UAH 10 billion (approximately $241 million) annually in lost tax revenue.

Formalizing the Lottery Sector to Boost Budget Revenues

Currently, the national lottery operates in a regulatory vacuum, free of licensing requirements and government scrutiny. As a result, the sector contributes neither license fees nor reliable tax revenue, a gap the government is determined to close.

PlayCity aims to bring this fragmented industry into the legal fold, offering digital licensing pathways and robust oversight tools. Officials believe formalizing this market will generate critical funds that can be redirected to Ukraine’s defense and reconstruction efforts.

Targeting Problem Gambling Through Digital Integration

In a forward-thinking approach, PlayCity is also prioritizing public health through regulatory controls on compulsive gambling. The agency is relaunching Ukraine’s national registry of problem gamblers, integrating it directly into the government’s widely used digital services platform, Diia.

This strategic move will enable at-risk individuals to submit self-exclusion requests through the Diia mobile app, creating a simplified, stigma-free channel for managing gambling addiction. The initiative reflects an emerging global trend where digital governance is used to proactively address social vulnerabilities linked to gambling.

Security Imperative: Blocking Russian-Linked Operators

Beyond financial and regulatory reform, PlayCity is also functioning as a national security instrument by eliminating gambling operations with ties to Russian interests. In the context of ongoing geopolitical tensions, the removal of these entities is viewed not merely as a regulatory mandate but as a strategic necessity.

Under Novikov’s prior leadership, Ukraine took strong enforcement actions, blocking over 4,500 illegal gambling websites and levying fines of nearly UAH 18 million (approximately $433,000) in 2024 alone. These aggressive tactics are expected to continue and intensify under PlayCity's watch.

Leadership With Proven Enforcement Experience

Hennadiy Novikov’s experience lends credibility to the agency’s ambitions. With a record of spearheading critical enforcement campaigns and designing digital-first regulatory frameworks, Novikov is seen as the right person to guide PlayCity during its foundational phase.

His work with the Ministry of Digital Transformation, particularly in shaping policies that led to the dissolution of the prior regulator, positions him as a key figure in Ukraine’s broader effort to rebuild governance mechanisms in critical sectors.

Policy Implications and Future Outlook

PlayCity’s launch reflects more than a shift in regulatory style; it represents a broader movement within Ukraine to modernize its institutional apparatus. By marrying technology with policy enforcement, the government seeks to improve economic efficiency, ensure social responsibility, and protect national sovereignty.

The success of PlayCity could serve as a blueprint for other sectors in Ukraine’s post-conflict reconstruction period, where public trust, digital innovation, and state control must intersect for sustainable governance.