The newly created entity, the State Agency of Ukraine PlayCity, will replace the Commission for the Regulation of Gambling and Lotteries (KRAIL), which is scheduled for formal liquidation by 1 April.

The Cabinet of Ministers, as confirmed by Taras Melnychuk, the Cabinet’s representative in parliament, in a Telegram message, announced the new entity last week.

“PlayCity” will be a central executive body tasked with implementing state policy in the organisation and regulation of gambling and lotteries.

Melnychuk noted that the agency will fall under the direct coordination of the Cabinet through the Deputy Prime Minister for Innovation, Education, Science, and Technology Development, Mykhailo Fedorov.

Fedorov is also the Minister of Digital Transformation.

PlayCity will assume operational duties from KRAIL with a staff of 61 employees—matching the number of positions cut from the former regulator.

The agency will be housed in the same premises previously used by KRAIL.

The transition also maintains the financial continuity of regulatory efforts, with the new agency operating within the 2025 state budget allocation initially designated for KRAIL, which totalled UAH160.4m.

However, a portion of this budget—UAH14.3m—has already been reallocated to the Ministry of Digital Transformation to facilitate the initial operations of the new regulatory structure.

Rebuilding trust in the gaming community

This restructuring follows a series of legislative and administrative reforms targeting the gambling sector.

Last December, the Verkhovna Rada passed a law that mandates the disbandment of KRAIL and the establishment of a new oversight body with enhanced regulatory authority and responsibilities.

The law also includes provisions to increase accountability among gambling operators and imposes a blanket ban on gambling-related advertising.

President Volodymyr Zelenskyy signed this legislation, identified as Law No. 9256-d, into effect in January.

The decision to dismantle KRAIL was largely driven by mounting concerns over its integrity and performance.

In 2024, KRAIL head Ivan Rudyi was arrested on charges of supporting the operations of Russian online casinos within Ukraine—a serious accusation given the broader geopolitical tensions between Ukraine and Russia.

Rudyi was remanded to pre-trial detention with no option for bail, signaling the gravity of the charges.

Further scrutiny of KRAIL’s activities revealed previous instances of regulatory inaction.

In 2022, the Ukrainian National News Agency (UNN) reported that the commission had issued a gambling licence to Your Betting Company LLC, which was allegedly a front for the Russian gambling operator 1Xbet.

Despite public evidence and concerns, KRAIL did not take action to revoke the licence or investigate the Russian affiliations at the time.

This past February, the Ukrainian government formally assigned the Ministry of Digital Transformation the responsibility for shaping and executing gambling policy.

This step effectively centralised the oversight of the gambling and lottery sectors under a ministry known for its role in advancing digital governance, aiming to bring increased transparency and accountability to a previously opaque regulatory landscape.