Ukraine’s PlayCity issues 10 B2B licences, revokes seven
Ukraine’s newly established gambling and lottery regulator, PlayCity, has granted 10 B2B licences to local gambling software and service providers while revoking seven licences after companies failed to respond to official inquiries, according to agency head Hennadiy Novikov.
These actions mark the first substantive enforcement measures since PlayCity replaced the former Commission for the Regulation of Gambling and Lotteries (KRAIL) on April 1, 2025. The Cabinet decision to create the agency brought gambling oversight under the Ministry of Digital Transformation.
B2B-first approach for resident operators
Novikov explained that PlayCity is initially focusing on B2B licensing, which is limited to resident companies. The regulator is intentionally separating the oversight of B2C operators from suppliers, with the goal of narrowing illegal pathways into the market and ensuring that licensed entities are responsible for compliance with vendor selection.
“The next step will involve inspections and monitoring of these companies,” Novikov stated. “This allows us to support the legal market while reducing the products available to unlicensed operators.”
The revoked licences were mainly due to non-responsiveness during due diligence checks, including screening for potential links to Russia.
Targeting the supply chain to curb illegal activity
PlayCity’s focus on B2B oversight comes amid an illegal market that remains substantial. Novikov estimates that roughly 50% of the sector operates outside the regulatory framework, leaving an estimated UAH 19 billion in potential revenue untapped each year. Beyond taxes, unlicensed operations carry greater risks for consumer protection and accountability.
Learning from international models
Novikov highlighted Romania as an example for structuring supervision across the gambling ecosystem, separating B2C operators from multiple tiers of B2B suppliers. This approach, he said, ensures transparency across the supply chain and mitigates risks like tax avoidance and capital outflows.
Payment and regulatory friction
While licensing steps tighten compliance, Novikov noted that licensed operators still face challenges in accessing mainstream payment channels. He suggested that a limited number of banks servicing gambling firms under major card schemes gives an edge to illegal operators, who increasingly rely on alternative methods, including peer-to-peer transactions and cryptocurrency.
PlayCity’s first round of B2B licences signals a decisive move to strengthen regulatory control over Ukraine’s gambling supply chain while pushing illegal operators further into the margins.
