Ukraine’s Ministry of Digital Transformation is proposing changes to gambling and tax legislation. The government has prepared a package of amendments to the Gambling Act and the Tax Code, and the documents have been opened for public consultation.

The reform aims to bring the regulatory model into line with the real market, reduce the share of the shadow economy, strengthen player protection, and create clear conditions for legal business in the country.
 

The Ukrainian regulatory context

According to an official statement, gambling in Ukraine was legalised in 2020 not to create a new market, but to bring the existing sector out of the shadows and establish state control. Whilst the industry paid just over UAH 200 million (€3.9 million) in taxes in 2021, total annual tax revenue from the legal market now stands at around UAH 17 billion (€335.4 million), plus approximately UAH 2 billion (€39.4 million) in licence fees.

Over five years, the fiscal impact has increased more than 80-fold as a result of market legalisation and licensing. “However, the current regulatory framework does not correspond to the current scale and structure of the market. Complex and illogical tax rules put legal operators at a disadvantage compared with the black market”, the Ministry of Digital Transformation explains. According to independent experts, the share of the shadow segment reaches around 50%, leading to systemic budget losses and undermining the incentive to operate legally.
 

First revenue from lottery licensing

The state budget has already received its first significant revenue from the revived lottery market. The first three licensed operators have paid UAH 24.2 million (€477,456) each for their licences, totalling over UAH 72 million (€1.4 million). These are the first licence fee payments made in the lottery sector over the past 12 years.

Licences were issued to Ukrainian lottery operators for the duration of martial law and for one year following its conclusion, but for no less than three years in total. “Such a transitional period avoids locking the regulatory model in place for decades and provides an opportunity to refine the legislation,” the Ministry of Digital Transformation notes. Since the licences were issued, the market has been operating in accordance with the new licensing conditions approved by the government. Preparations are also continuing for amendments to the relevant law on lotteries.
 

Ukraine’s gambling reform project

In 2026, the Ministry is proposing a comprehensive package of changes covering three key areas: the transition to effective state control and digital monitoring, strengthening player protection, and simplifying the tax model. Plans include the creation of a unified state register and an online monitoring system for gambling operators (DSOM), shifting control to a data-driven format with automated reporting and analytics, as well as simplifying licensing procedures with close monitoring of compliance.

In terms of player protection, mandatory monitoring of gaming activity is proposed to identify risky patterns, as well as a response to signs of gambling addiction. This may involve temporary or permanent exclusion from gaming, the ability for players to set personal limits, and self-exclusion tools. Responsible gaming systems are being introduced as a mandatory element of regulation.

To address regulatory gaps, it is planned to introduce reporting and oversight requirements for gambling service providers, strengthen oversight of the online sector, and expand powers to check licence holders for links to the aggressor state. The draft bill provides for a clear classification of violations and proportionate sanctions: fines and mandatory rectification of technical deficiencies for formal violations; licence revocation for critical violations posing a threat to players or the state.
 

Draft amendments to the Tax Code

The draft amendments to the Tax Code aim to create a transparent and predictable tax model for the industry. Key provisions of the draft include:

• the introduction of a single 18% tax rate on income from organising gambling, alongside the elimination of double taxation for businesses;
• a clear definition of how players’ income is taxed, with tax payable on the positive difference between winnings and deposited funds;
• the synchronisation of tax reporting with DSOM data, with audit mechanisms in cases of significant discrepancies.

This model is designed to increase transparency, reduce incentives for illegal operations, and create economic incentives for investment in the legal market.

The Ukrainian gambling reform, which the Ministry of Digital Transformation is implementing gradually, aims to create a transparent and regulated market, synchronise digital monitoring with the tax system, and ensure stable and predictable budget revenues. Predictable rules and digital oversight will create conditions for the industry’s sustainable development and protect citizens’ interests.

The Ministry opened public consultation on the draft amendments on 11 March 2026. The regulator PlayCity supports a model of open dialogue with the market, experts, and the public. The drafts can be viewed and constructive suggestions submitted on the Ministry of Digital Transformation’s website; comments will be taken into account when finalising the draft legislation.

 

 

Source

 

 

#Ukraine #GamingRegulation #OnlineGambling #GamingTax #PlayerProtection #RegulatoryUpdate #GamingIndustry