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Official Urges Major Ukraine Gambling Reform Amid Changes

Official Urges Major Ukraine Gambling Reform Amid Changes

Danylo Hetmantsev, a key Ukrainian legislator, has called for a significant Ukraine gambling reform. His proposal centers on appointing a new head for the regulator, PlayCity, through a transparent process and fully implementing the new state online monitoring system to enable fair taxation and oversight.

Top Legislator Demands Overhaul of Gambling Oversight

Danylo Hetmantsev, the chair of the Ukrainian parliament’s Committee on Finance, Tax and Customs Policy, has publicly called for urgent and comprehensive Ukraine gambling reform. As a prominent member of President Volodymyr Zelenskyy’s Servant of the People party, his statements carry significant weight and signal a potential shift in the country's regulatory landscape.

Hetmantsev's primary demand is for an open competition to select the next leader of PlayCity, the Ukrainian gambling regulator. To ensure transparency and combat potential corruption, he insists that representatives from the National Anti-Corruption Bureau of Ukraine (NABU) must be involved in the selection process.

DSOM Implementation: The Key to Fair Taxation

A central pillar of the proposed reforms is the full implementation of the new state online monitoring system for gambling, known as DSOM. Hetmantsev argues that until this system is fully operational, any meaningful changes to the taxation of gambling winnings are impossible. The core issue is that authorities currently lack access to reliable data on operator payouts.

This technological dependency directly impacts fiscal policy, a critical aspect of gambling oversight Ukraine. Hetmantsev's position highlights the need for robust data before legislative changes can be considered.

“DSOM must be launched, and then I do not rule out that the question of changing the formula for taxing winnings will be appropriate,” Hetmantsev stated in a recent interview.

Current Status of the DSOM System

PlayCity confirmed last month that the DSOM is now live, albeit on a test basis. The initial phase has seen the first 11 gambling operators connected to the system, with more currently in the process of integration. The system is designed to give the regulator complete visibility of all gambling transactions within the regulated market.

The DSOM infrastructure is divided into two main components. It features an internal part accessible only to state authorities and an external part for gambling operators. Access for all parties is secured through the use of a unique identifier, ensuring a controlled and monitored environment.

Summary of Proposed Reforms

The calls from Danylo Hetmantsev outline a multi-faceted approach to strengthening Ukraine's gambling framework. The proposals aim to address leadership, technology, and market competition simultaneously.

Reform AreaProposed Action
Regulator LeadershipAn open competition for the head of PlayCity with NABU involvement.
Monitoring SystemFull and immediate implementation of the DSOM.
Gambling Taxation UkraineRe-evaluate the tax formula for winnings only after DSOM is fully operational.
Lottery MarketConduct a fresh competition to replace the previous one.

Broader Regulatory and Political Context

These calls for reform arrive during a period of administrative change. Just last month, oversight of PlayCity was transferred from the Minister of Digital Transformation to the direct coordination of the Prime Minister. This shift in governance adds another layer to the discussions around the regulator's future leadership and autonomy.

In addition to the focus on PlayCity and the DSOM, Hetmantsev also argued that the lottery market requires attention. He advocated for a completely new competition to be held, suggesting a desire for a comprehensive reset of the entire gambling sector's framework.

The combination of these proposals indicates a strong political will to establish a more transparent, data-driven, and accountable gambling market in Ukraine. The full adoption of these reforms could fundamentally reshape the industry for years to come.

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About the Editor

Bea Zsoldos
Bea ZsoldosHead of Global Compliance & Player Experience, CasinoPie