Liquidation of KRAL and launch of a new gambling regulator: what will change?

From April 1, 2025, the Commission for the Regulation of Gambling and Lotteries (KRAL) in Ukraine will officially cease its activities. Its functions will be taken over by a new state body - the PlayCity agency, which will operate under the coordination of the Ministry of Digital Transformation.

The government's final decision

On March 25, the Cabinet of Ministers adopted a decision to liquidate KRAL, arguing that it was ineffective. The Ministry of Digital Affairs emphasized that the new structure will have modern digital approaches to regulation, which will make the gambling market transparent and controllable.

"We are launching a new stage of gambling business regulation. PlayCity will become an effective control mechanism, which will significantly reduce the number of illegal casinos and increase revenues to the state budget," the ministry's press service reported.

Main tasks of "PlayCity"

The new agency will have four main areas of work:
1. Digitalization of licensing - introduction of uniform transparent rules for all market participants.
2. Strengthening control over the activities of the gambling business and the fight against illegal casinos.
3. Optimization of tax revenues - it is expected that the legal gambling market will annually bring up to 10 billion hryvnias to the budget, which will be directed to the needs of the Defense Forces of Ukraine.
4. Counteraction to gambling establishments with Russian ties to prevent financing of the enemy through the gambling business.

Why are changes needed?

The liquidation of KRAIL has been a hot topic in the past few months. Numerous corruption scandals and the regulator's inefficiency have prompted the government to make radical changes. The new approach will not only clear the market of illegal operators, but also make the licensing process as transparent as possible.

Expected results

The formation of a modern digital regulator has the potential to change the situation in the gambling market. It is expected that PlayCity will significantly reduce the shadow segment of the gambling business, increase state revenues and strengthen the security of financial flows.

The government also plans to intensify international cooperation to combat offshore illegal casinos that circumvent Ukrainian legislation.

What's next?

The launch of PlayCity is only the first step. In the coming months, a full transition to digital licensing, the introduction of effective control tools and increased liability for violators are expected.

The Ukrainian government expects that such measures will contribute to the creation of a civilized and transparent gambling market that meets European standards.