Ukraine Opens the Door to a New Lottery Era

Ukraine Opens the Door to a New Lottery Era

Ukraine's long-running effort to restructure its gambling landscape has reached another stage as the government begins accepting applications from companies seeking the right to operate official lotteries. The move reflects an attempt to bring a sector that has existed for years without a defined regulatory structure under a uniform set of rules managed by the national regulator, PlayCity.

The Ministry of Digital Transformation confirmed that PlayCity has opened a competitive selection process for companies interested in obtaining formal approval to run lottery operations. This step follows months of regulatory groundwork, including issuing new gambling licences and proposing updated requirements for market participants. The launch of the tender aligns with the wider plan to introduce standards across all segments of the industry and establish clear channels for oversight.

Preparation for this shift began earlier in the year, when PlayCity circulated a draft proposal outlining the conditions under which a future lottery tender would operate. In that proposal, the regulator projected that annual licensing revenue could reach UAH 10bn, with the proceeds earmarked for defence funding amid the ongoing conflict with Russia. Once the Cabinet of Ministers reviewed and endorsed the plan in late November, the final barrier to initiating the first lottery tender in more than ten years was removed.

The country's approach to gambling regulation has evolved significantly over the past decade and a half. In 2009, the government banned most gambling activities after a lethal fire in a gaming hall raised concerns about operational safety and legal oversight. For more than a decade, the sector remained heavily restricted until lawmakers reversed the ban in 2020. Lotteries stood apart during this period, operating legally but gradually drifting into an environment officials later described as unstructured.

The industry's irregular status became more pronounced in 2015, after the two major operators at the time, MSL and Patriot, were sanctioned for suspected corruption and alleged links to Russian business partners. Their withdrawal from the market left the lottery sector without formally recognised operators and without the mechanisms to allow the state to collect licence fees or enforce reporting obligations. As a result, lotteries continued to operate, but without the transparency that usually accompanies regulated sectors.

The new tender represents an attempt to establish a structured system in which operators follow defined obligations and maintain consistent reporting practices. Under the updated framework, only companies holding authorised licences will be permitted to conduct lottery activities. Applicants will be required to implement electronic reporting systems capable of providing the regulator with real-time data on sales, payouts, and related transactions. Every ticket and terminal will feature a unique QR code, allowing inspectors and players to verify legitimacy and track the equipment.

PlayCity has stated that it welcomes applications from Ukrainian firms with a solid operational background, particularly those with exposure to international markets or comparable regulated environments. Companies must demonstrate at least 3 years of experience in lottery or gaming operations, hold a website registered under the national .ua domain, and possess authorised capital of at least UAH 30m. Another key requirement is the absence of direct or indirect connections to Russia, a condition shaped by security concerns that have influenced many sectors of Ukrainian policy in recent years.

Interested firms must submit their documents by December 29. After the deadline, PlayCity will review the submissions and announce the selected operators within fifteen business days. Once chosen, companies will have ten days to complete the licensing process and settle the relevant fees. The timeline suggests that authorities aim to transition the sector into its new structure without delay, while still giving applicants time to meet the requirements.

Deputy minister Natalia Denikeeva described the initiative as the beginning of an organised and accountable lottery market. Her statement emphasised the intention to replace outdated practices with a structure in which all participants operate under the same conditions. The shift, she noted, aims to ensure that each ticket sold or prize awarded can be verified and monitored through established procedures, reducing the uncertainty that characterised the sector for years.