The Cabinet of Ministers of Ukraine has preliminarily approved an initiative to transfer the gambling regulator PlayCity from the Ministry of Digital Transformation to direct subordination under the Cabinet of Ministers. However, the final decision has not yet been made, as Prime Minister Yulia Sviridenko has not signed the relevant decree.

At the same time, lawmakers are considering a separate proposal under which the Ministry of Finance of Ukraine could be granted authority to shape state policy in the gambling sector. If both changes are implemented, the Ministry of Finance would be responsible for policy-making, while PlayCity would be placed under direct subordination to the Cabinet of Ministers.

The head of the parliamentary finance committee, Danylo Hetmantsev, stated that the Cabinet of Ministers has preliminarily supported the initiative. Currently, PlayCity remains within the structure of the Ministry of Digital Transformation, which oversees certain areas of digital regulation in the sector.

However, the decision has not yet taken legal effect, as the Prime Minister’s decree has not been signed. Until then, the proposed restructuring has no formal legal status.

The Role of the Ministry of Finance

In parallel, Parliament continues to advance a second initiative. The Finance Committee previously supported an amendment introduced by Danylo Hetmantsev, which proposes granting the Ministry of Finance authority to shape state policy in the gambling sector.

Such a reform would separate policy-making from regulatory supervision: the ministry would define the rules of the industry, while PlayCity would continue operating under direct subordination to the Cabinet of Ministers.

The Minister of Finance, Serhii Marchenko, stated that the ministry would act in accordance with the decision of Parliament. He also addressed issues related to the State Online Monitoring System (DSOM), a digital tool designed to track activity in the gambling market.

Minister Serhii Marchenko said: “We will follow the decision of the Verkhovna Rada and respond accordingly.”

In response to questions from MPs regarding the Ministry of Finance’s continued involvement in implementing DSOM, which is being developed by the Ministry of Digital Transformation, Marchenko noted that he is not yet ready to take a final position.

Pressure for Greater Transparency in the Sector

The proposed changes come amid increased scrutiny of transparency in Ukraine’s gambling market, as well as concerns over illegal financial flows and potential money laundering risks. These concerns have become a key factor in the debate over who should oversee the regulator and define sector policy.

PlayCity reports intensified enforcement activity: a new online reporting tool recorded more than 250 cases of illegal gambling advertising within two weeks, while the DSOM system is already in the testing phase with 11 operators connected. According to PlayCity head Gennady Novikov, roughly half of Ukraine’s online casino market remains in the illegal segment.

Against this backdrop, an international study by Kantar provides additional analytical context to the regulatory debate: the volume of illegal online gambling in Ukraine is estimated at $1.39 billion annually, with its share continuing to grow, underscoring persistent pressure from the shadow market on the regulated sector.

Illegal Market Share Exceeds 56%

The Kantar study was conducted between March and May 2026 using the Kantar Access Panel, with 2,500 respondents. It found that the share of illegal gambling in Ukraine increased from 52.1% to 56.7% in 2026.

According to the findings, more than 80% of respondents reported using unlicensed online casinos or betting platforms within the past three months. Analyst Oleksandr Kohut commented that the trend clearly shows continued growth of the unlicensed segment at the expense of the legal market, with users increasingly shifting into the grey zone.

The study estimates the size of the illegal market at more than $1.39 billion annually, although it does not specify whether this refers to GGR or total betting turnover.

Faster Payouts as a Key Driver

The study identified several reasons why users continue to prefer unlicensed gambling sites. The main factor was faster payouts (49%), followed by fewer restrictions (44%), more attractive bonuses (37%), tax advantages (25%), and simplified registration (18%). Respondents also cited the use of cryptocurrencies and circumvention of age restrictions.

High Visibility of Illegal Brands

The report also highlighted strong brand recognition among unlicensed operators in Ukraine’s gambling market. Researchers found that 15 of the 30 most recognized gambling brands among consumers are linked to the illegal segment, out of a total of 56 brands assessed.

Kohut noted that enforcement measures remain too slow to effectively counter illegal gambling activity, stating that “blocking illegal operators is still carried out very slowly, while most regulatory restrictions are focused on the licensed segment.”

 

 

 

 

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