PlayCity, Ukraine’s Gambling Authority, has fined Favbet UAH9m ($210,658.50) after it was found to be using software from a vendor without the necessary B2B licence.
In addition, the operator was allegedly delaying paying winnings to players and had delayed its licence payment to the government.
This was discovered during PlayCity’s first sweep of scheduled compliance checks in the country.
Hennadiy Novikov, Head of PlayCity, said that: “The purpose of the checks is not pressure or loud headlines, but to ensure that all market participants work according to the same rules, fulfil obligations to the state and players, and not create risks for trust in the industry in general.”
PlayCity is still a relatively new regulator, only launching in 2025 to tackle the new gambling landscape in Ukraine.
It replaced the original KRAIL agency and has prioritised making the gambling and lottery market more transparent and accountable.
Two weeks ago, PlayCity launched its online state monitoring system, which would allow the government to monitor bets accepted, payouts of winnings, refunds and player deposits.
PlayCity explained this would assist with tax calculations, while also protecting players and preventing game manipulation by operators.
All licensed operators are expected to integrate themselves within the new system by the summer.
At the very end of 2025, PlayCity also revoked seven B2B licences from companies that were no longer qualified to operate in the Ukrainian market.
Novikov thanked the Government for removing the moratorium on the verification of Decree No. 1318, making it easier for the regulator to take action
