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Ukraine launches investigation into delayed rollout of online gambling monitoring system

PlayCity Chair Gennady Novikov reportedly stated that there would be no online monitoring system and claimed that no funding had been allocated for it in the 2026 state budget.

2 min read
UkraineOnlineMonitoringSystem
Key Points
Ukraine’s Prosecutor General’s Office has opened an investigation into irregularities regarding the implementation of the online monitoring system
The system was originally expected to be operational several years ago
Delays in launching the system have been linked to funding issues and have reportedly resulted in losses of around 20 billion annually for the state
The absence of a state-level monitoring system continues to raise concerns over financial oversight and potential money laundering risks

Ukraine’s Prosecutor General’s Office has opened a case over alleged irregularities in the implementation of the State Online Gambling Monitoring System, with the Bureau of Economic Security set to lead the investigation.

Daniil Hetmantsev, head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, reported the development. He said delays in launching the system have resulted in losses of around UAH 20bn ($460.13m) annually.

The monitoring system was originally due to launch several years ago. One of the reasons the previous regulator, KRAIL, was dissolved in 2024 was its failure to implement the system.

Back in January this year, the Ministry of Digital Transformation reported that the government had approved a resolution required to launch the system.

The first stage was intended to record player transactions and account balances. The aim was to strengthen industry oversight and provide a clearer understanding of tax liabilities.

A second phase was expected to track game outcomes, monitor gaming machines, enforce responsible gambling measures and record transactions involving alternative in-game currencies.

In March, Hetmantsev reported receiving a letter from PlayCity Chair Gennady Novikov stating that “there will be no State Online Gambling Monitoring System”. He claimed that no funding had been allocated in the 2026 State Budget.

Shortly afterwards, Hetmantsev filed a complaint with the Prosecutor General’s Office over what he described as a failure to secure funding for the project.

According to data from the National Bank of Ukraine (NBU), as cited by Member of Parliament Nina Yuzhanina, the total turnover of the Ukrainian gambling industry reached UAH 158bn ($3.60bn) in 2025, while gross gaming revenue (GGR) stood at UAH 56bn.

Yuzhanina claims that data from the NBU indicates numerous instances in which gambling payouts were sent to bank cards other than those originally used for deposits. Furthermore, some of these transfers involved unusually large sums of money.

One major issue cited here is the lack of a state-level online monitoring system for the gambling sector. According to Yuzhanina’s statement, these circumstances create significant risks of money laundering.

The monitoring system is part of broader reforms set by Ukraine’s National Security and Defence Council, which mandated its introduction alongside measures to restrict gambling for military personnel and limit the use of military symbolism in gambling promotion.

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