Ukraine will launch a new National Lottery firm as part of ongoing plans to overhaul the governance of gambling in the interest of national security.

The announcement comes from the Ministry of Digital Transformation (MDT), the government body leading Ukraine’s technology, IT, and data-infrastructure projects and key policy coordinator ensuring digital resilience and transparency amid the ongoing conflict with Russia.

The MDT confirmed that regulatory agency PlayCity has begun proceedings to open competition for state lottery licences, marking the first regulated process in more than a decade. The move seeks to dismantle what officials have described as a “grey zone” where operators paid no licence fees and tax oversight was minimal.

Under the new framework, only licensed operators will be authorised to conduct state lotteries. The rules mandate electronic reporting and real-time tracking of ticket sales and winnings, while every ticket and terminal will carry a unique QR code to verify its point of sale and confirm the legality of the equipment.

Government action follows years of instability surrounding former operators MSL (Molod’ Sport Loto) and Patriot, which lost credibility after being implicated in corruption allegations in 2015 and accused of serving as money-laundering vehicles for Russian partners.

The National Security and Defense Council (NSDC) imposed direct sanctions on both firms, freezing operations and paralysing the market for nearly a decade, with no new licences or regulatory oversight issued during that period.

Deputy Minister Natalia Denikeeva deems the initiative as a full reset for a market long in need of structure and accountability:

“The time for us to start a market where the initial conditions are the same for all is finally here. A competitive environment is established around that — one in which old schemes will not continue to win, but quality, technology and compliance with the law.”

Denikeeva added that the government’s goal is to build a transparent, tax-compliant lottery sector that both contributes to public revenues and guarantees fairness for players.

PlayCity has invited Ukrainian companies, particularly those with overseas experience, to apply for the new licences.

Applicants must meet the following criteria:

• At least three years of operational experience in the lottery or gaming market. 
• A website registered in the .ua domain zone. 
• A minimum authorised capital of ₴30m (approx. €700,000). 
• No direct or indirect ownership or affiliation with the aggressor country.

The deadline for submissions is 29 December, with applications accepted either in person at PlayCity’s offices or by email. After applications close, PlayCity will publish a list of winners within 15 business days, and successful applicants will then have 10 days to formalise their licences and pay the required fees.

The Cabinet of Ministers, which approved the reform in late November, said the initiative is part of Ukraine’s broader effort to “civilise” its gambling and lottery sectors by enforcing tax compliance and ensuring fair, regulated play. Officials believe the overhaul will deliver two key outcomes: increased state revenues and greater public confidence in the integrity of games and draws.

“That is a new starting point for the lottery market,” Denikeeva concluded. “Players will for the first time know that every ticket, every draw and every payout is verified, legal and secure.”

Ukraine’s big gambling reset

In 2025, Ukraine began a wider restructuring of its gambling industry and licensing framework, restoring transparency and oversight after years of dysfunction. Market supervision under conflict falls under PlayCity, which operates as the central regulatory body governing licensed operators.

In October, PlayCity launched its national central monitoring system, enabling real-time tracking of all gambling transactions and customer registrations across approved platforms. The agency continues to classify gambling as a high-risk sector targeted by Russian interference, and is reviewing all active and suspended licences to ensure compliance with national security and digital-governance standards.

Stasya Yautodzyeva, Head of Analytics at 4H Agency, said the move represents the culmination of a year of active restructuring across Ukraine’s gambling landscape.

“Over the past twelve months, the country has introduced new regulatory frameworks across all verticals, established a more responsible and transparent regulator, attracted attention from international stakeholders, and seen a growing interest from operators. The opening of the lottery market effectively summarises this entire transformation.”

According to Yautodzyeva, the new structure is designed to be open and competitive, with a clear break from the monopolised practices of the past. The law limits the number of licences to three operators, allowing the state to maintain tight control while ensuring market diversity.

Yautodzyeva concluded that Ukraine deserves credit for taking a bold and modern approach:

“An open, non-monopolised lottery sector is a rarity globally, especially across the CIS and most of Europe. This model has the potential to generate substantial revenue for the state while fostering a transparent and responsible relationship between operators and the public.”

“Foreign companies with proven international experience are technically eligible,” Yautodzyeva continued, “but the extremely tight submission window — from 1 to 29 December — makes it highly unlikely that they will be able to prepare compliant bids in time. Realistically, the market will be defined by three domestic firms that can act quickly.”