Ukraine plans to establish an online surveillance system for its gambling sector
In a significant stride towards transparency, regulatory control, and the combating of illegal gambling, Ukraine is developing a real-time national monitoring system for its burgeoning iGaming, sports betting, and casino sectors. This ambitious initiative is being spearheaded by the Ministry of Digital Transformation and the newly established gambling regulator, PlayCity.
At the heart of this system is real-time oversight, designed to track all online bets, providing regulators with instant data on wagers placed, refunds processed, and payouts made by licensed operators. This continuous monitoring will enable the government to keep a close eye on market activities, moving away from periodic audits or self-reporting.
Transparency is another key aspect of this project. The platform will make market volume statistics publicly available, offering citizens and stakeholders insights into the scale and dynamics of the gambling sector. This transparency aims to demystify the industry and support data-driven policy decisions.
Clarity in tax obligations is another significant benefit of the system. It will clarify tax obligations for licensed operators, making it easier for the state to forecast and collect gambling tax revenues and for operators to comply with regulations.
combating illegal gambling is a primary goal of the system. By providing detailed visibility into licensed operations, regulators can more easily differentiate and act against unlicensed operators.
The Ministry of Digital Transformation has invited Ukrainian IT companies to contribute to the system's design, soliciting feedback to ensure the platform is user-friendly and effective. An online consultation was held on July 21, following a call for registration by July 18.
The move towards a more regulated and transparent gambling industry in Ukraine comes after a decade-long ban, which was lifted in August 2020. However, the sector has since faced challenges with illegal operations and regulatory fragmentation. The launch of the monitoring system follows recent enforcement actions, including the blocking of 133 illegal online casino sites.
PlayCity, the newly created body tasked with regulating the gambling industry, will lead the development of the state monitoring system. Its partnership with the Ministry of Digital Transformation signals a tech-driven, centralised approach to regulation.
The system's development is ongoing, with the goal of delivering a fully operational real-time monitoring platform in the near future. Licensed operators will be required to integrate with the new monitoring system, ensuring comprehensive data collection and enforcement capabilities.
In summary, Ukraine's new state monitoring system for gambling represents a robust, technology-driven approach to regulating a fast-growing and previously opaque sector, with a clear focus on legality, transparency, and fiscal responsibility.
This technology-driven approach, led by the Ministry of Digital Transformation and PlayCity, is designed to enhance finance management and business operations within Ukraine's iGaming, sports betting, and casino sectors. The system, built for real-time monitoring, aims to combat illegal gambling by tracking all online bets, providing clear tax obligations for licensed operators, and offering transparency to citizens and stakeholders regarding market volume statistics.
