The Cabinet of Ministers has decided to begin the liquidation procedure of the Commission for the Regulation of Gambling and Lotteries on April 1. The functions of KRAL will be transferred to the newly created state agency PlayCity, which will be responsible for implementing state policy in the field of gambling and lotteries.
The activities of the agency will be coordinated by the Ministry of Digital Transformation.
In December 2024, the Verkhovna Rada adopted a bill on the liquidation of KRAL and the creation of a new state agency “PlayCity”, which will be coordinated by the Ministry of Digital Transformation. The purpose of this step is to reform the gambling business, automate the licensing processes and minimize corruption risks.
What will happen after the launch of PlayCity:
- The issuance of licenses will be digitized, which will help eliminate corruption risks and ensure transparent conditions for all market participants.
- Mechanisms will be introduced to control the activities of the gambling market and combat illegal casinos.
- Activities of casinos associated with the aggressor state will be countered.
- It is expected that thanks to the reform, the state budget will be able to receive up to UAH 10 billion in taxes each year, which will be directed to the needs of the Defense Forces.
The reform should ensure transparent rules of operation for all market participants and effective control by the state. This will contribute to the de-shadowing of the industry and the strengthening of the Ukrainian economy.
It should be noted that KRAL failed to ensure effective regulation of the gambling business, which led to corruption scandals, in particular, the issuance of licenses to companies with a dubious reputation. In addition, the Commission did not implement a system for online monitoring of the activities of gambling operators, which complicated control over their activities and contributed to shadow schemes.
Moreover, the expected budget revenues from the legalization of the gambling business were not achieved. Instead of the projected UAH 12 billion in the first year, only UAH 1 billion was received.
Meanwhile, the new legislation provides for increased control over the gambling business, restrictions on gambling advertising, and the introduction of measures to protect vulnerable categories of the population.
