On Friday, 3 January, President Volodymyr Zelenskyy of Ukraine signed into law new gambling amendments to improve the “state’s regulation of gambling and lotteries.”
Grabbing international news headlines, Zelenskyy approved the Rada’s decision to “dissolve KRAIL,” the Gambling and Lotteries Authority of Ukraine, and establish a new regulator, scheduled to take effect by April.
Zelenskyy’s signature ends the problematic tenure of KRAIL as the gambling authority of Ukraine, as allegations of corruption and bribery had hounded the agency prior to Russia’s invasion in the winter of 2022.
The dire circumstances of war saw Ukraine’s gambling licences come under the scrutiny of the intelligence agency of the National Security and Defence Council (NSDC), which imposed sanctions on multiple incumbents, placing strict restrictions and limitations on gambling transactions.
Such consequences required the Rada to amend the Gambling Law of 2020 to revise conditions for a disrupted industry engaging with war-torn communities, in which suspicions of Russian interference continue to linger.
Monitoring developments, Ivan Kurochkin, Head of Consulting at 4H Agency, underscored that amendments will prioritise the ‘state control’ of gambling activities, within which the new regulator’s remit will be established.
Though final arrangements are yet to be determined, 4H Agency details that the new regulator will be established on the following principles:
- The previous regulator, Gambling Commission, is liquidated, and a new agency is created, which will be controlled by the Ministry. The Cabinet of Ministers will determine the specific structure of the new agency.
- The regulator will have the authority to introduce limits on gambling by setting time and money thresholds.
- Supervisory powers and types of sanctions for violations will be significantly expanded. The regulator will gain direct powers to block illegal gambling websites, expanding the grounds for licence revocation.
4H Agency notes that the law will impose a near-total ban on gambling advertising, allowing only limited forms of promotion:
- On the Internet, but it must not target consumers under 21. Ukraine will maintain its gambling age restriction of 21+.
- On TV, from 11 p.m. to 6 a.m.
- Sponsorship remains possible only in the field of sports.
State demands new B2B controls
The third priority relates to payments. Operators will have to make payments exclusively through banks. Enhancements to the State Online Monitoring System (SOMS) are also included to improve data transparency and enforcement.
New legislation will update rules and technical arrangements for state lotteries, aligning their operational standards with those of gambling operators. New requirements cover ownership transparency, corporate reputation, licensing criteria, and branding, ensuring consistency across the market.
Reporting obligations for gambling and lottery operators, suspended during martial law, are reinstated under the new amendments.
Finally, introducing a B2B licensing regime is another critical aspect of the reform. From now on, all Ukrainian gambling software and service suppliers must obtain a licence to operate with local B2C companies.
This closes a situation that previously allowed non-resident providers to supply software without local licensing, creating a more level playing field for both domestic and international companies.
Ukraine can govern a modern gambling sector.
The signing of this law is a new milestone in Ukraine’s journey to rebuild a modern, regulated gambling industry. The emphasis on responsible gambling, including strict advertising restrictions and the adoption of controlled gambling, reflects a growing focus on consumer protection.
Meanwhile, introducing B2B licensing is a significant step towards levelling the market and ensuring compliance among all industry participants.
Ivan Kurochkin noted: “Clear challenges remain for Ukraine. The unresolved issue of taxation continues to complicate the operational environment for legal operators, as the Ukrainian Tax Code still does not fully accommodate the specifics of the gambling business. Additionally, the economic uncertainties stemming from the ongoing military situation pose additional risks for market growth.
We will continue to monitor the development of Ukraine’s gambling market closely, tracking both new legislative initiatives and emerging trends. While these reforms address many long-standing issues, their success will depend on effective implementation and sustained regulatory oversight. If executed well, Ukraine has the potential to become a competitive and attractive jurisdiction for gambling operators in Eastern Europe.”
On Friday, 3 January, President Volodymyr Zelenskyy of Ukraine signed into law new gambling amendments to improve the “state’s regulation of gambling and lotteries.” Grabbing international news headlines, Zelenskyy approved …