Ukraine’s gambling regulator, PlayCity, has constituted compliance breaches totaling UAH 946m (£16m) in just under a year.

This was announced by the regulatory body in its monthly activity report, as it prepares to commence further inspections of 34 licensed operators by the end of the year.

PlayCity took charge of the local gambling sector in June 2025, becoming the official successor of the previous regulator KRAIL, which was no longer able to enact its obligations due to the war with Russia.

KRAIL was first established in 2020 with an official decree which legalised gambling in Ukraine for the first time in 11 years. Its tenure was short-lived, however. 

President Zelenskyy’s cabinet deemed it ineffective last year, as conscription orders took staff away from their KRAIL duties indefinitely. The former regulator was also embroiled in controversy after a KRAIL official was accused of accepting bribes in 2021.

All of this led to the creation of PlayCity, which in its 11-month mandate has constituted regulatory failures valued at almost £16m – highlighting a severely dysfunctional gambling market which KRAIL failed to exercise authority over.

PlayCity still facing challenges

Not all is smooth sailing, however, as Ukraine’s recent push to fulfil its financial obligations under the International Monetary Fund (IMF) has led to concerns that the gambling sector could be at risk of another breach in the hull.

Ukrainian MPs are currently debating the adoption of a draft law that consolidates the information about all digital income generated within the war-struck country and how it is taxed, with the data then relayed to the IMF.

Heading into its second reading, the bill includes an amendment that would see the transfer of gambling policymaking powers from the current Ministry of Digital Transformation to the Ministry of Finance.

Experts have cautioned against this proposal, arguing that any changes to how gambling regulation is structured in Ukraine will most likely obstruct PlayCity’s plans for increased oversight in 2026.

These plans include the aforementioned 34 licence checks, finalising a national problem gambling study, the rollout of a centralised monitoring system for licensed operators, and a heated battle against illegal gambling ads.