Real-Time Internet Gaming Regulation Demanded by Ukraine
In a significant move towards regulating its gambling industry, Ukraine has implemented a comprehensive online gambling monitoring system. This system, designed to be convenient, effective, and understandable for all users, is part of the government's efforts to increase transparency, reduce illegal operations, and bolster tax revenues.
Since legalising online gambling, bookmaking, slot halls, and casinos in August 2020, Ukraine's gambling market has been under strict state supervision. All operators are required to obtain licenses from the Ukrainian Gambling and Lotteries Regulation Commission (KRAIL), which oversees compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
Key elements of transparency and accountability include licensing and compliance, monitoring and enforcement, payment transparency, and adherence to international standards. Licensed operators are mandated to implement robust AML and KYC procedures, similar to those used in the EU and other regulated markets. The monitoring system, though not explicitly detailed, is expected to involve real-time data feeds from operators to the regulator, allowing for instant oversight of betting activities, player behaviour, and financial flows.
Integrating advanced payment solutions can further enhance transparency by ensuring that all transactions are traceable and reconcilable. For example, platforms that support crypto payments must still comply with national regulations, meaning transactions are not anonymous and are subject to the same oversight as fiat currency operations.
The new system will track all bets in real-time, display detailed data on wagers, refunds, and payouts, and make market volume figures public. This transparency is a crucial step in preventing Ukrainian money from flowing to Russia-based websites, as part of the government's broader initiative to clean up the gambling industry.
To ensure stricter controls in the gambling industry, an anti-corruption expert group has been established within PlayCity, the new gambling regulator in Ukraine. This group, which includes representatives from public organisations, is a response to the dismantling of Ukraine's previous gambling regulator, KRAIL, which faced repeated accusations of bribery and abuse of power.
The members of the anti-corruption expert group will be chosen through a vote on Diya, the country's e-government app. Only representatives of NGOs working on anti-corruption, gambling addiction, or illegal gambling prevention are eligible to run for the group.
As part of PlayCity's tenure, which began in June, it has taken steps to gain control over illegal operators. IT firms have until July 18 to register for an online consultation scheduled for July 21, as the Ministry of Digital Transformation invites them to help design the platform. The first stage of development will involve collecting feedback from technology companies to improve the system.
The online gambling monitoring system aims to monitor legal casinos, fight the shadow market, and build a predictable tax policy. It also seeks to clarify how much tax revenue is owed, as Ukraine transitions from a complete ban on gambling to a regulated industry that promises greater state control, reduced illegal operations, and increased tax revenues.
- In a continued effort to regulate the gambling industry and increase transparency, the new online gambling monitoring system implemented in Ukraine requires licensed operators to implement robust AML and KYC procedures, similar to those used in the EU and other regulated markets, featuring real-time data feeds to allow instant oversight of betting activities, player behavior, and financial flows.
- As an additional measure to ensure accountability and combat illegal operations in the gambling industry, an anti-corruption expert group has been established within PlayCity, the new gambling regulator in Ukraine, with representatives from public organizations selected through a vote on Diya, the country's e-government app, working on anti-corruption, gambling addiction, or illegal gambling prevention.
