The Ukrainian market for gambling and lotteries is preparing for major changes. The Ministry of Digital Transformation plans to submit a package of draft laws to the Cabinet of Ministers for consideration in mid-August, aimed at reforming the industry. This event will be a turning point for a sector that has been operating in a legal vacuum for over a decade.
The end of the "wild" market era
According to Natalia Denikeeva, Deputy Minister of Digital Transformation, the upcoming changes can be called a true relaunch. For 12 years, lottery operators have functioned effectively without state supervision, operating "as they pleased." The absence of approved licensing conditions, which should have been provided for by the 2012 Law "On State Lotteries," created a situation where the market was open to chaotic development.
The situation began to change only after the management of the sector was transferred to the Ministry of Digital Transformation. In 2025, the government approved licensing conditions and held an open competition, determining three market operators. For the first time in more than a decade, the budget received licensing revenues: each operator paid 24.2 million hryvnias, totaling more than 72 million hryvnias.
Auctions and new investors
A key innovation of the proposed reform will be the introduction of auction sales of licenses. Official representatives of the department believe that this mechanism will open the market to new investors and eliminate the existing imbalance. Currently, lottery operators are not limited in the number of distribution points or advertising, yet they pay less for a license than any online casino.
The draft law on lotteries is already at the stage of coordination with the State Regulatory Service. After approval by the Cabinet of Ministers, the document will undergo registration in the Verkhovna Rada and coordination with the relevant tax committee. The implementation of these steps is necessary for the full opening of the market to international companies.
Lobbying pressure and the transition period
Despite the readiness for reforms, the process is fraught with serious difficulties. A significant obstacle remains the powerful industry lobby, which has been exerting pressure on legislators for the past year. The Ministry of Digital Transformation is aware of the risks of lobbyist influence on the course of the reform but intends to move towards transparent regulation.
It should be noted that the current regulatory model is defined as transitional. It is in effect for the duration of the martial law and one year after its conclusion, but no less than three years. This temporary window is intended to serve as the foundation for building a sustainable and transparent system for regulating the gambling business in Ukraine.