The Ukrainian Acting Minister of Digital Transformation, Oleksandr Bornyakov, has revealed to local media that 17 operators have already joined the State Online Monitoring System (SOMS) for gambling.
According to him, preparations are underway for a tender to develop the system's second stage.
Bornyakov stated: "Development of the second phase of the system requires approximately UAH 44.4m ($990,000). The application for these funds has already been reviewed by the Ministry of Digital Development's Commission for the Selection and Prioritisation of Public Investment Projects. Development will continue once the funds are allocated."
He further noted that developing such a large-scale system can take about 12.5 months.
The urgent implementation of this system is necessary to improve transparency in the Ukrainian market, particularly regarding tax collection and money laundering risks.
Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, has previously warned about possible tax evasion by gambling operators.
In the initial phase, the system will track key player transactions, including bets, payouts, refunds and balance replenishments.
This will enable the state to monitor legal operators' activities in real time and more accurately assess the taxes these companies are required to pay.
There are also concerns about potential money laundering risks and suspected illegal payment flows within the sector.
Due to the accumulation of issues in the market, authorities are developing a long-term strategy extending to 2035.
This strategy aims to strengthen oversight and transparency while also reducing gambling-related harm. Another key focus will be addressing the illegal gambling market.
In a separate development this week, the National Commission for State Regulation of Electronic Communications and Postal Services (NCEC) in Ukraine informed internet service providers (ISP) to block access to 397 websites identified as operating illegal gambling services.
Hopefully, a long-term strategy currently in development, along with ongoing reforms in Ukraine, will implement tougher measures that go beyond ISP blocking. This situation eventually becomes a cat-and-mouse game in every market where domain-level blocking occurs, and new mirror sites instantly emerge.
Ukrainian officials recently met with the Gambling Commission to discuss gambling regulation and lessons that could aid Ukraine’s ongoing reforms
