Lottery industry in Ukraine targeted for transparency under new licensing initiative

PlayCity, which has been the nation’s gambling regulator since the dissolution of the scandal-ridden KRAIL last year, said it was in the process of a complete reboot of the lottery market.

Previously, it said the lottery had operated in grey market conditions, without licence payments and tax receipt monitoring.

The news comes in the wake of a series of gambling scandals in the country, with several iGaming operators being prosecuted after alleged Russian links with the countries at war.

Natalia Denikeieva, Ukraine deputy minister of digital transformation, said: “We are finally launching a market where the starting conditions are the same for everyone.

“This is how a competitive environment is formed, where access to ‘old schemes’ does not win, but product quality, technological feasibility and compliance with the law. This is a new starting point for the lottery market.”

PlayCity warned the licence will be the only legal basis for issuing and conducting state lotteries and provides for mandatory electronic reporting, which will allow the government to track sales and payouts in real time.

Each ticket and terminal will receive a unique QR code, which will mean the operators knows where the ticket was bought and that all the equipment was legal.

The regulator has invited domestic Ukrainian companies, especially those with experience of working aboard, to participate in the tender, against a 29 December deadline.

Applicants must have three year’s experience in the market, a .ua domain zone, capital of over UAH30m (€610,000) and no association with the Russian Federation.