Ukraine weighs transfer of gambling oversight to Ministry of Finance

The Ukrainian Parliamentary Committee on Finance, Tax and Customs Policy has backed amendments that would shift responsibility for gambling regulation from the Ministry of Digital Transformation to the Ministry of Finance.

The decision was taken during a Committee meeting as part of broader changes to the Tax Code and the Law on Banking Activity. 

This would effectively transfer policymaking functions in the sphere of gambling and lotteries to the Ministry of Finance.

Finance Minister says the Government will follow Parliament’s decision

During the meeting, Finance Minister Serhii Marchenko said his department would be guided by the decision of parliament.

Marchenko stated: "We will follow the Verkhovna Rada's position. We will respond accordingly to the decision. This is a complex issue, but we will make our decision as the legislature determines."

When asked by deputies whether the Ministry of Finance would continue implementing the online gambling monitoring system being developed by the Ministry of Digital Transformation, the minister said he was not yet able to form a position.

Concerns grow over transparency, tax evasion and suspected illegal payment flows in the sector

Danylo Hetmantsev, head of the Parliamentary Committee on Finance and Tax Policy, has raised serious allegations that state-owned Sense Bank may have been used to process payments linked to illegal gambling.

Hetmantsev also noted that the Prosecutor General’s Office is already conducting searches at the bank and has opened criminal cases. He also previously warned about potential tax evasion by operators.

MP Nina Yuzhanina said National Bank of Ukraine data shows cases where gambling winnings were paid to different bank cards from those used for deposits, including unusually large transfers.

She also warned about the use of so-called “drops”, bank accounts belonging to unrelated individuals used by third parties to move large sums, raising concerns about potential money laundering risks in the industry.

Could the proposed shift strengthen financial oversight and control of Ukraine’s gambling sector?

With Ukraine’s gambling sector facing growing concerns over transparency, suspected illegal payment flows and potential money laundering risks, the proposed transfer of regulatory oversight to the Ministry of Finance makes sense.

The Ministry of Finance could be better equipped to address compliance challenges and improve transparency in the industry.