The Ministry of Digital Transformation of Ukraine has opened a public consultation on proposed amendments to the country’s gambling legislation and tax framework, aiming to modernise regulation and address challenges that have emerged since the sector’s legalisation.
The proposed reforms include changes to both the Law of Ukraine on State Regulation of Activities Concerning the Organisation and Conduct of Gambling and the Tax Code of Ukraine.
Authorities say the initiative is designed to align regulation with the current structure of the market, strengthen player protection and reduce the size of the illegal gambling sector.
Ukraine legalised gambling in 2020, transitioning activities that had previously operated outside the legal framework into a regulated environment. Since then, the market has expanded significantly. According to official figures, tax revenues from the sector have increased from just over UAH200m ($4.5m) in 2021 to approximately UAH17bn annually, with an additional UAH2bn collected through licence fees.
Despite this growth, government officials have acknowledged that the current regulatory model contains inconsistencies and outdated provisions. Estimates from industry observers suggest that the shadow gambling sector could account for up to 50% of the market, creating challenges for enforcement and tax collection.
The draft legislation introduces several proposed regulatory measures, including mandatory monitoring of player behaviour to identify potential signs of gambling harm. Operators would also be required to implement tools such as self-imposed spending limits and voluntary exclusion mechanisms.
In addition, authorities plan to expand oversight of gambling service providers and introduce a digital monitoring framework supported by a centralised state register for gambling activities.
The accompanying tax reform proposal includes the introduction of a unified 18% tax rate on gambling income, the removal of double taxation for operators and clearer rules for calculating taxes on player winnings.
The consultation period will allow businesses, experts and members of the public to submit feedback before the legislation is finalised.
The proposals come amid broader scrutiny of the sector. Earlier this week, MP Nina Yuzhanina cited National Bank data showing the industry reached a total turnover of UAH 158bn in 2025, while raising concerns over transaction irregularities and money laundering risks.
Ukraine legalised gambling in 2020, bringing previously unregulated betting and casino activities under a national licensing and taxation framework
