Concerns raised about proposed shift of Ukraine’s gambling regulation to Finance Ministry

(AsiaGameHub) –   Lawmakers are divided on which ministry should oversee gambling regulation in Ukraine.

A Ukrainian legislator has cautioned that transferring responsibility for gambling regulation from the Ministry of Digital Transformation to the Ministry of Finance could introduce more complications than solutions. Nina Yuzhanina, a member of the European Solidarity party, opposes Draft Bill No. 15111-d, currently being drafted by the Committee on Finance, Tax and Customs Policy.

The proposed legislation is tied to Ukraine’s obligations to the International Monetary Fund (IMF), which mandates the government to monitor and report on how digital revenues are taxed. However, Yuzhanina criticized committee chair Danylo Hetmantsev’s handling of the process, pointing out that deputies submitted 3,529 amendments prior to the bill’s second reading.

Hetmantsev has publicly criticized the Ministry of Digital Transformation’s management of gambling regulation, especially its rollout of the new national gambling monitoring system for Ukraine. The platform, which supplies real-time data to the gambling regulator PlayCity, launched its initial phase in April and is anticipated to be fully functional by year-end. Nevertheless, Hetmantsev claims that delays may result in annual losses to the treasury of up to UAH 20 billion (€385 million).

He maintains that the Ministry of Finance is better equipped to regulate gambling, which he describes as a crucial sector of Ukraine’s economy. Nonetheless, Hetmantsev has faced accusations of a conflict of interest due to previous connections with the gambling industry. Local media have reported that he once held shares in MSL, a lottery operator accused in 2015 of involvement in cross-border money laundering between Ukraine and Russia alongside another operator, Patriot.

Mykhailo Aksyonov, Deputy Head of PlayCity’s Anti-Corruption Expert Group, has also voiced concerns about the proposed transfer of authority. In an interview with 24 Channel, he stated: “Regardless of who initiated this amendment and what the underlying motives are, the very concept of transferring powers at this time appears too high a risk.

“If we proceed with shifting policymaking responsibilities from the Ministry of Digital Transformation to the Ministry of Finance—while simultaneously establishing a new regulatory body—the rollout of the state Online Monitoring System could be postponed by at least one year. And it is precisely this system that serves as the primary instrument ensuring the transparency of gambling operators’ activities.”

Both MSL and PJSC Patriot were awarded new lottery contracts earlier this year; however, Patriot lost its license in late March, less than a month after receiving it. The revocation followed reports from the State Bureau of Investigation indicating that the company did not meet legal requirements regarding ownership.