Ukraine’s gambling sector is facing growing concerns over transparency, tax evasion, suspected illegal payment flows and potential money laundering risks. At the same time, regulatory and safer gambling proposals continue to emerge, alongside changes at the regulator. Enforcement has also intensified, with renewed calls for stronger oversight.
Ukraine legalised online gambling in 2020 after more than a decade of prohibition. Six years later, authorities are still working to strengthen the regulatory framework and close oversight gaps. These issues are outlined below.
Financial crime concerns expose regulatory gaps
In May, allegations emerged that state-owned Sense Bank may have facilitated illegal gambling transactions. Danylo Hetmantsev, Head of the Parliamentary Committee on Finance and Tax, said the Prosecutor General’s Office had opened criminal cases and was investigating claims that an organised crime group used positions within the bank to support illegal gambling activity. Hetmantsev has also repeatedly warned about potential tax evasion by gambling operators.
Meanwhile, Member of Parliament Nina Yuzhanina previously raised concerns over possible money laundering after citing National Bank of Ukraine data showing gambling payouts being transferred to bank cards different from those originally used for deposits. Some of the transactions also involved unusually large sums.
Both lawmakers criticised delays to the implementation of the state's online monitoring system, arguing they had deprived authorities of effective oversight. The system has only recently entered its initial testing phase, with 28 of the country's 30 licensed gambling operators now connected.
Ukraine’s gambling sector is facing growing concerns over transparency, tax evasion, suspected illegal payment flows and potential money laundering risks
Regulatory shake-up
Following a recent decision by the Cabinet of Ministers, gambling regulator PlayCity has been placed under the Cabinet's direct supervision. Previously, the agency operated under the Ministry of Digital Transformation, which was responsible for developing gambling policy while PlayCity handled licensing, oversight and enforcement.
Although PlayCity now reports directly to the Cabinet, the Ministry of Digital Transformation continues to play a role in developing gambling policy, at least for the time being.
Earlier this year, the Ukrainian Parliament’s Committee on Finance, Tax and Customs Policy supported amendments that would transfer responsibility for gambling regulation from the Ministry of Digital Transformation to the Ministry of Finance.
The latter may be better placed to oversee tax compliance, anti-money laundering measures and financial supervision, meaning it is better equipped to deal with the sector’s most pressing issues.
Hetmantsev has also proposed legislation introducing a transparent selection process for appointing PlayCity's next head, involving both the National Anti-Corruption Bureau of Ukraine and international experts. The proposal follows the resignation of Gennady Novikov, against whom no public allegations of wrongdoing have been made.
The changes signal an attempt to strengthen regulatory independence and improve financial oversight, although the success of the new structure will depend on whether it can deliver on promises.
Enforcement against the illegal market
PlayCity has significantly increased enforcement activity, submitting 6,668 illegal gambling websites for blocking since the start of 2026, more than double the total recorded during 2025.
The regulator said improved monitoring systems and cooperation between state authorities have strengthened the identification and blocking of illegal gambling websites. PlayCity noted that blocking times have been reduced to one day after notification, with further improvements being developed through a cross-sector working group involving key government and cybersecurity bodies.
While enforcement efforts have accelerated, the size of the illegal market shows that blocking unauthorised operators remains one of the sector’s biggest challenges
The regulator has also expanded cooperation with major digital platforms, ncluding Meta, Google, TikTok, YouTube, Viber, Twitch and Kick to accelerate the removal of illegal gambling advertising. A dedicated online reporting tool has also been introduced to help citizens report illegal promotions.
Nevertheless, earlier this year, Novikov stated that around half of Ukraine's online casino market continues to operate illegally. While enforcement efforts have accelerated, the size of the illegal market shows that blocking unauthorised operators remains one of the sector’s biggest challenges.
Military gambling restrictions
In June, the Cabinet of Ministers approved a ban preventing active military personnel from gambling. The measure introduces automatic player verification against both the national self-exclusion register and a new military personnel register currently being developed by the Ministry of Defence.
The Ministry of Digital Transformation has also described excessive gambling as a wartime national security issue, arguing that financial and psychological vulnerability can increase the risk of manipulation during conflict.
Long-term responsible gambling strategy
Alongside tougher enforcement, authorities are preparing a national responsible gambling strategy extending to 2035. The plan aims to strengthen prevention, education, treatment and rehabilitation while increasing action against the illegal market.
The strategy will involve more than 40 government bodies and marks a broader shift towards coordinated regulation, recognising gambling-related harm as both an individual and societal issue.
Outlook
Ukraine’s regulatory overhaul marks an important step towards a more mature gambling market, but major obstacles remain. The effectiveness of the reforms will ultimately depend on whether authorities can close existing oversight gaps, improve transparency and successfully reduce the influence of illegal operators.