Ukraine's Plush PlayCity Takes the Reins from KRAIL in April
Ukraine changes gambling oversight from KRAIL to PlayCity as new regulatory body
Step aside, KRAIL! The Ukrainian government has introduced a new boss on the block—Enter, PlayCity, the State Agency of Ukraine. This fresh pup will supersede KRAIL in overseeing gambling and lotteries nationwide.
The Cabinet of Ministers' representative, Taras Melnychuk, confirmed the message on Telegram: PlayCity will be the central executive body, overseeing the implementation of Ukraine's state policy on gambling and lotteries.
And guess who's in charge of coordinating PlayCity's operations? According to Melnychuk, Mykhailo Fedorov, First Deputy Prime Minister for Innovations, Education, Science and Technological Development, and Minister of Digital Transformation, will handle the task.
A Stormy Past: KRAIL's Ties to Corruption and Russia
KRAIL, the former gambling regulator, has seen its fair share of controversy and criticism in Ukraine ( Symbolic image). The governmental body has been accused of neglecting serious violations against Ukraine's gambling law by online casinos and betting providers.
Rumors swirled when KRAIL's ex-head, Ivan Rudyi, was arrested. Allegations arose that Rudyi supported Russian online casinos in Ukraine, even granting a Ukrainian gambling license to the suspected front for the Russian gambling provider, 1Xbet, Your Betting Company LLC. Despite numerous warnings, KRAIL seemed to turn a blind eye to the matter.
New Tasks on the Horizon for PlayCity
As KRAIL's replacement, PlayCity will take over multiple responsibilities that were previously held by its scandal-ridden predecessor. Some of its key tasks include:
- Regulating and implementing state gambling and lottery policy
- Organizing the gambling market operations
- Ensuring transparency and digital modernization
- Combating corruption and illegal gambling
- Meeting legal requirements
- Managing the state gambling budget
The Ukrainian Ministry of Digital Transformation released a statement on PlayCity's priorities:
"We aim to digitize the licensing process, introduce stringent market oversight, and combat illegal casinos. The black market takes billions away from the state, and by streamlining the sector, we can eliminate corruption, boost transparency, and increase budget revenues that can then be allocated to the military."
A Budget Boost for PlayCity
Initially, KRAIL was offered a budget of UAH 160.4 million (approx. EUR 3.82 million); however, UAH 14.3 million (approx. EUR 340,000) has already been redirected to the Ministry of Digital Transformation to facilitate PlayCity's launch.
A Fresh Start for Ukraine's Gambling Regulation
The creation of PlayCity is part of a broader legislative and administrative reform of Ukraine's gambling market. The move follows President Volodymyr Zelenskyy signing Law No. 4116-IX in January 2025, initiating these wide-reaching reforms.
In light of rising gambling addiction issues last year, Zelenskyy ordered an analysis of gambling problems in Ukraine. Controversial statements by Ukrainian soldier Pavlo Petrytschenko, claiming gambling addiction within the military, elevated these issues to the forefront.
With the introduction of PlayCity, Ukraine aims to establish a more transparent gambling market, quash illegal operators, and boost tax revenues through regulated online casinos and betting providers.
Additional Insights:
- PlayCity will focus on enforcing state policy, issuing licenses, ensuring compliance, conducting real-time monitoring, combating corruption, introducing market control tools, and managing the state gambling budget.
- PlayCity will replace KRAIL, which faced challenges in efficiently regulating the market and interacting with transparency and accountability.
- PlayCity is expected to introduce better leadership and expertise, with fewer ties to corruption and illegal gambling practices.
- The new gambling regulator aims to increase tax revenues significantly, with forecasts estimating additions of up to €220 million annually.
- Ukraine's new gambling and lotteries overseer, PlayCity, will eliminate corruption and illegal gambling in the market, as announced by the Ukrainian Ministry of Digital Transformation.
- Mykhailo Fedorov, First Deputy Prime Minister, will handle the coordination of PlayCity's operations, following its takeover of the gambling and lotteries sector from KRAIL in April.
- PlayCity's tasks include managing the state gambling budget, regulating and implementing state gambling and lottery policy, and ensuring transparency and digital modernization, as the new central executive body for gambling and lotteries in Ukraine.
- General news reports warn that PlayCity's predecessor, KRAIL, faced ties to corruption and illegal gambling activities, including supporting Russian online casinos contrary to Ukraine's gambling law.
- Politicians in Ukraine hope that the establishment of PlayCity will help increase tax revenues significantly, with forecasts predicting additional revenues of up to €220 million annually from regulated online casinos and betting providers.
