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PlayCity, Ukraine’s new gambling regulator, has revealed draft proposals for lottery licensing that could generate more than UAH 10m ($242m) annually, with proceeds directed toward the country’s defence efforts.
Draft resolution sets the stage
The regulator is laying down the groundwork.
The announcement was made via Telegram, where PlayCity outlined its plan to reshape how lotteries are licensed in Ukraine. Lotteries have been operating without state control, but the new resolution seeks to introduce structured procedures for competition and payments.
For now, the framework remains at draft stage, but it will move forward following public consultation. Once enacted, PlayCity will be responsible for running the first state lottery operator competition, with a 60-day timeline to complete the process after the announcement.
Raising funds for national defence
The lottery carries a wider purpose.
PlayCity expects licensing fees to bring in UAH 10m ($242m) per year. According to the government, those funds will go directly towards strengthening Ukraine’s military defence amid the ongoing war with Russia.
The regulator noted that new documents from the Cabinet of Ministers include concessions and adjustments tailored to the conditions of martial law, ensuring the system can function despite wartime pressures.
A new regulator takes charge
Change followed years of criticism.
PlayCity officially replaced the Commission for the Regulation of Gambling and Lotteries (KRAIL) in June 2025, after the former regulator was dismantled for being ineffective. Since its launch, PlayCity has adopted a more assertive stance, including issuing eight fines worth UAH 3.2m to licensed casino operators in August for failing to submit required reports.
The lottery reform marks the first major alteration to Ukraine’s licensing protocols since 2013 and is seen as a core part of PlayCity’s mandate: transparent licence issuance and tighter market oversight.
Digital transformation of oversight
Online monitoring is becoming central.
The push to reshape lottery licensing ties into broader plans for digitisation. Ukraine’s Ministry of Digital Transformation is developing a state online monitoring system designed to track gambling operations in real time.
The system is intended to provide regulators with a clearer view of market behaviour, while also shaping tax policy and ensuring compliance across licensed entities. PlayCity’s move to modernise lotteries aligns with this wider digital strategy.
Reform with long-term implications
The lottery overhaul could signal more changes ahead.
By reshaping how lottery licences are issued, PlayCity is not only filling a long-standing regulatory gap but also signalling the government’s intent to strengthen oversight across the gambling sector.
The funds raised will play a direct role in supporting Ukraine’s defence, while the licensing process will test PlayCity’s ability to deliver on its promise of transparent regulation and effective market control.
As the consultation phase begins, the industry will watch closely to see whether the new framework can both modernise the lottery system and provide the state with a sustainable revenue stream.
Source: Gambling Insider
