TITLE: Ukraine's State Gaming and Lottery Control Agency Announces Lottery Market Licensing Competition Results and Planned Legislative Reforms
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On January 28, 2026, Ukraine's State Agency for Control of the Gambling and Lottery Sphere (PlayCity) announced the results of an open licensing competition for lottery operators. Three companies—MSL, Patriot, and Ukrainian National Lottery—were selected as winners, having met updated licensing requirements and demonstrated readiness to operate under transparent rules.
The competition represents a significant reform milestone for Ukraine's lottery market, which has operated in an unregulated "grey zone" for over a decade without adequate state oversight, transparent reporting, or effective enforcement mechanisms. The selected operators must submit licensing applications within ten days, followed by a ten-day payment period for annual licensing fees of ₴24.2 million per operator.
New licensing conditions establish a transparent operational framework requiring all operators to maintain electronic reporting systems. Each lottery ticket and terminal will feature a unique QR code enabling verification of legal sales. These measures aim to guarantee fair lottery operations and timely prize payouts for players, while providing the state with budget revenue from licensing fees and taxes.
However, PlayCity emphasises that licensing conditions alone are insufficient for comprehensive reform. The conditions are approved for the duration of martial law plus one year, with a minimum three-year term—deliberately shorter than the ten-year periods under current legislation. This transitional approach prevents market stagnation and enables legislative updates.
Planned amendments to the Lottery Law and Tax Code will establish improved operator selection mechanisms, provide regulators with enforcement tools for violations, and create a balanced taxation model encouraging market legalisation. Following legislative changes, the state intends to conduct a new competition under updated rules with opportunities for qualified international operators.
REFERENCES:
State Agency for Control of the Gambling and Lottery Sphere (PlayCity). "Lottery Market Emerges from Shadow: Competition Results and Upcoming Legislative Changes." January 28, 2026. Available at: https://playcity.gov.ua/