Ukraine's Gambling Market in 2026: Regulator's Strategy Against the Shadow Sector

Ukraine's Gambling Market in 2026: Regulator's Strategy Against the Shadow Sector

According to Главком: As of 2025-2026, the regulation of Ukraine's gambling industry remains a pressing issue, particularly in the fight against its illegal sector. Independent research firms Kantar, Gradus, and Factum conducted the first comprehensive studies into the scale of the market's 'shadow' economy, revealing that illegal gambling accounts for up to 53% of the total market. In contrast, the legal sector is estimated to be worth approximately UAH 60 billion annually. The state budget received about UAH 1.9 billion in license fees and roughly UAH 17 billion in taxes from the gambling industry in 2025, indicating a gradual shift toward market legalization. This push for regulation follows the legalization of gambling in 2020, which ended a decade-long ban.

In the autumn of 2025, the state regulator 'PlayCity' initiated scheduled inspections of gambling businesses. The first such inspection was completed at the betting company Favbet, which was fined over UAH 9 million. Favbet's revenue for 2025 reached UAH 21.23 billion, a significant increase from UAH 9.79 billion in 2024. Throughout 2025, 14 entities were fined for violating the 'On Advertising' law, with total penalties amounting to UAH 67.2 million. The fixed fine for illegal gambling advertising is 600 times the minimum wage, equating to UAH 5.2 million in 2026.

Following a nearly year-long pause in issuing licenses due to the absence of updated licensing terms, the process resumed in the fourth quarter of 2025. As of January 2026, 'PlayCity' had issued 22 new licenses, including:

• two licenses for online casinos;
• one for bookmaking activities;
• 12 licenses for B2B services and gambling software;
• seven licenses for slot machine operations.

In September 2025, the 'PlayCity' Agency signed a UAH 26 million contract with a subcontractor to implement an online gambling monitoring system, which is currently in the deployment phase.

Furthermore, a tender was held in December 2025 to create a new registry for problem gamblers. By the end of January 2026, the Gambler's Register listed approximately 14,000 individuals, who face access restrictions for up to three years. A critical aspect of the regulatory framework involves restrictions for military personnel, as stipulated by National Security and Defense Council decisions, which prohibit their access to gambling for the duration of the martial law.

Gennadiy Novikov, a representative of 'PlayCity', emphasized the importance of preventing sensitive information from reaching third parties and clarified that any additional restrictions for military personnel would apply exclusively to the legal gambling market.

Thus, Ukraine's gambling market in 2026 is in a phase of active regulation and legalization, with the 'PlayCity' regulator's efforts focused on combating illegal operations and ensuring the stable development of the legal segment.

The situation in Ukraine's gambling market demonstrates that, despite a significant illegal segment, state efforts to regulate and legalize the business are beginning to yield results. The growth of the legal market's volume and budget revenues points to positive changes. Simultaneously, efforts to enforce compliance with legislation and protect vulnerable groups, particularly military personnel and problem gamblers, remain key aspects for the future development of the gambling industry in Ukraine.