Ukraine Implementing New System for Monitoring Gambling Transactions

The National Bank of Ukraine has recently introduced a new monitoring system as part of its efforts to consolidate its monitoring capabilities over the country's gambling system. This system, aimed at tracking bets, returns, and winnings in real-time, is designed to verify data submitted by operators and ensure all licensed companies comply with the prerequisites set by the new gambling regulator, PlayCity.

PlayCity, established by the Cabinet of Ministers and operating under the Ministry of Digital Transformation, has been tasked with closing illegal gambling websites, including those linked to Russia. In a bid to support PlayCity in its mission, the monitoring system will assist in identifying and shutting down such websites.

The deployment of the monitoring system is a significant step in Ukraine's ongoing reforms enacted under the new regulator. It aims to eliminate any room for unauthorized gambling or breaches of the existing law, thereby strengthening regulatory oversight over B2B suppliers and operators.

Ukraine's gambling sector is a significant part of the economy, with an estimated €8m being spent daily by Ukrainian citizens on various gambling platforms. However, concerns have been raised regarding the potential funding of Russia's war against Ukraine through illegal gambling activities. The new measures, while focusing on regulated licenses within Ukraine's gambling sector, also aim to target bad actors and address illegal gambling tied to Russia.

One proposed measure is a complete ban on gambling advertisements, which could potentially drive more people into the offshore sector. This raises concerns about the potential increase in the offshore sector's influence. Meanwhile, websites proliferating among illegal operators continue to be linked to Russia.

In an effort to combat these issues, PlayCity has pledged to collaborate with the State Bureau of Investigation in dismantling gambling websites tied to Russia and funding its war against Ukraine. This collaboration is part of the broader efforts to consolidate Ukraine's monitoring capabilities over its gambling system.

The new measures come as part of Ukraine's ongoing efforts to strengthen its oversight of the gambling sector. As the monitoring system for Ukraine's gambling sector, designed to track operator data in real-time, was officially deployed on Sunday, August 31, it marks a significant milestone in Ukraine's fight against illegal gambling activities.