War and iGaming: How Ukraine’s Gambling Market Is Transforming

On our Ukrainian analytical platform, we review casinos from all angles. Our experts explore the national and global gambling market to find the best solutions and help gamblers avoid potential pitfalls and benefit from perks. In wartime, as our team of Svitua has witnessed, gambling in Ukraine shifted from offline locations to online environments, mostly of which were not properly regulated at the 2022 start. But things are different now.

Since the outbreak of hostilities, we have kept on with the job at a steady pace. Even during power outages and blackouts, we’ve done our research. Now, we are ready to sum up the intermediate results, consider the current situation, and reflect on the changes that have occurred.

Regulatory Changes in Ukraine’s iGaming Market

The iGaming in Ukraine has been dramatically reshaped. There were concerns related to the influence of gambling on locals. That is why the Ukrainian government has tightened control over the industry to provide all the participants with fair conditions and security. This results in the Gambling Commission‘s online casinos being liquidated in April 2025.

Instead, a new body, the Playcity Agency, was created to regulate website gambling and perform respective functions. Now, the industry reports indirectly to the state authority that partially implements the Cabinet of Ministers’ policy (Digital Transformation Ministry).

Now, businesses not connected to aggressor states can apply for an iGaming license remotely. There is the Unified State Web Portal for Electronic Services for this purpose. Operators are required to allow registered and verified players to use only their bank accounts for financial transactions. Also, casinos must submit reports to the regulator to prove compliance with the legislation.

A new law was adopted. It introduces new gambling advertising requirements and prohibits any motivations based on the war to invite gamblers to join online casinos. Operators cannot represent themselves as sponsors who help the army and get additional competitive benefits in this way.

Impact of War on Gambling Platforms

In Ukraine, gambling became legal in August 2020. The war started in February 2022. Thus, the period of development without military risks is very restricted. Still, the official information from the gambling association about total turnover and tax revenues from iGaming businesses is optimistic. The expert assessment of the industry allows us to accept the idea that it will grow in the future.

Tax Revenues and the Economic Role of iGaming

The war forced land-based casinos to interrupt business. Some establishments had to close. Instead, the iGaming segment shows a steady growth of volumes, which means an increase in tax deductions. Let’s look at reported figures:

• In 2022, the total turnover amounted to UAH 14 billion, and taxes on the gambling business were UAH 730.9 million.
• In 2023, the total turnover in this industry was UAH 207 billion, while taxes were UAH 10.4 billion.
• In 2024, the growth continued.

In many developed countries all over the world, there is a positive experience of the legalization of the gambling business. This is a budget replenishment source. The well-thought-out licensing procedure makes the development of the sector beneficial both for business owners and the state. In particular, it is true when the country is involved in a continuous war.

This industry will help the economy be stable after the war is over. To add to the income taxes and revenue from licenses, gambling businesses attract investors. Stay updated with iGaming news on our online platform to get the information about launched investment projects and other details on the subject. 

From KRAIL to Playcity: New Regulatory Bodies

Until 2025, KRAIL was responsible for licensing and regulation of the gambling industry in Ukraine. But the activity of the commission was considered unsatisfactory. For instance, in 2024, UAH 10 billion in taxes were underpaid to the state budget because of the low effectiveness of the authorized body. The used tactics could not close down the shadow market by banning illegal operators.

The new agency, Playcity, has fuller powers. As a result, clear rules are set. Now, procedures are going to be transparent and simple. Bets are controlled in real time. Digitalization will transform licensing and reporting. It will provide new tools and remove the human touch in the decision-making process.

The previous body was non-transparent. Society lacked comprehensive information about the procedures, market participants, and betting terms. Playcity is transforming the gambling market by leveraging new IT tools to perform control. Every operator that is restricted from running a business for legal reasons will be listed on the online registry accessible to everybody. Also, the self-exclusion system for gamblers will be improved.

Future Prospects of Ukraine’s iGaming Sector

The recent reformation of the gambling industry in Ukraine will result in further enhancements. The new regulatory body will limit corruption and motivate online casinos to become even more responsible. The shadow market will be replaced with licensed operators and transparent terms. Current taxation in the field, including the 18% CIT and 10% GGR tax, will contribute greatly to the state budget.

The overall legitimate Ukrainian gambling market is expanding rapidly. Online casinos will add a lot to this growth. They become more convenient and secure. The enhanced IT ecosystem in Ukraine with rapid digital transformation is going to simplify regulation and control. The information about operators and licenses that enable services on any iGaming platform will be widely accessible, which will make gambling secure and encourage investments.