Ukraine Replaces Gambling Regulator Amid Corruption Scandal
Ukraine has launched a new state agency to regulate gambling, following the dissolution of its previous regulator over corruption allegations and ties to Russian gambling operators. The new body, PlayCity, will operate under the direct supervision of the Ministry of Digital Transformation and the Cabinet of Ministers.
New Agency Established to Oversee Gambling Policy
The Ukrainian government has created the State Agency of Ukraine PlayCity as the new authority responsible for implementing gambling and lottery policy. The decision follows the dismantling of the Commission for the Regulation of Gambling and Lotteries (KRAIL), which is set to be formally liquidated by April 1.
According to Taras Melnychuk, parliamentary representative of the Cabinet of Ministers, PlayCity will serve as a central executive body and will report to Deputy Prime Minister Mykhailo Fedorov, who also leads the Ministry of Digital Transformation.
PlayCity will inherit KRAIL’s 61 staff positions and operate from the same office. Its funding will come from the existing 2025 state budget allocation previously set for KRAIL, totaling UAH160.4 million. A portion of this amount—UAH14.3 million—has already been transferred to the Ministry of Digital Transformation to support the agency’s early operations.
Corruption and Regulatory Failures
The move to replace KRAIL follows a wave of criticism and legal actions stemming from its operations. In 2024, KRAIL chairman Ivan Rudyi was arrested and held in pre-trial detention over allegations that he facilitated illegal online gambling operations linked to Russian interests. No bail was granted.
Earlier incidents also raised concerns. In 2022, Ukrainian media reported that KRAIL issued a licence to Your Betting Company LLC, allegedly associated with the Russian gambling firm 1Xbet. Despite the controversy, the regulator failed to investigate or revoke the licence.
President Volodymyr Zelenskyy signed new legislation in January—Law No. 9256-d—that mandates the establishment of a new gambling oversight body and the permanent ban of gambling-related advertising. The law also sets stricter standards for operator accountability.
The reforms reflect a broader effort to rebuild public trust and improve governance in a sector long criticized for a lack of transparency. In February, the government officially tasked the Ministry of Digital Transformation with leading gambling policy, marking a shift toward more centralized and digitally oriented oversight.