Does PlayCity fulfill KRAIL’s objectives?

(AsiaGameHub) –   Ukraine’s gambling regulator, PlayCity, has imposed compliance penalties amounting to UAH 946m (£16m) in just under a year.

This announcement was made by the regulatory authority in its monthly activity report, as it prepares to launch further inspections of 34 licensed operators by the end of the year.

PlayCity assumed control of the local gambling sector in June 2025, officially succeeding the previous regulator KRAIL, which was unable to fulfil its duties due to the war with Russia.

KRAIL was initially established in 2020 through an official decree that legalised gambling in Ukraine for the first time in 11 years. However, its period of operation was brief.

Last year, President Zelenskyy’s government determined that KRAIL was ineffective, as conscription orders led to staff being diverted from their roles at the agency indefinitely. The former regulator also faced controversy after one of its officials was accused of accepting bribes in 2021.

These circumstances prompted the creation of PlayCity, which within its 11-month mandate has recorded regulatory violations valued at nearly £16 million—underscoring a deeply problematic gambling market that KRAIL failed to effectively oversee.

PlayCity still facing challenges

However, progress is not without obstacles, as Ukraine’s recent efforts to meet its financial commitments to the International Monetary Fund (IMF) have raised concerns that the gambling sector could again face disruption.

Ukrainian lawmakers are currently reviewing a draft law designed to consolidate information about all digital income generated within the country and how it is taxed, with this data subsequently transmitted to the IMF.

As the bill advances toward its second reading, an amendment is included that would shift gambling policy-making responsibilities from the current Ministry of Digital Transformation to the Ministry of Finance.

Experts have expressed caution regarding this proposal, warning that any alterations to the structure of gambling regulation in Ukraine will likely hinder PlayCity’s plans for enhanced oversight in 2026.

These plans include the aforementioned inspections of 34 licenses, completion of a national problem gambling study, implementation of a centralised monitoring system for licensed operators, and intensified efforts against illegal gambling advertisements.