In Ukraine, PlayCity Accuses State Lotteries of Operating Illegal Online Casinos

On November 19, the PlayCity agency sent an appeal to the Bureau of Economic Security. In the letter, the agency stated that state lottery operators host games on their websites that effectively function as online casinos and betting services.

According to PlayCity, these products fall under Article 203² of the Criminal Code of Ukraine, which concerns the illegal organization of gambling. The agency emphasized that such services have been operating for years without proper oversight.

What Exactly PlayCity Claims

The appeal notes that lottery websites contain gaming sections that provide access to slots and betting options. PlayCity believes this goes beyond permitted activities and requires government inspection.

The agency also points out that these services may mislead players: users visit a state lottery website but then access products that should require separate licensing.

Government Actions

On the same day, the Cabinet of Ministers of Ukraine approved a new regulation governing state lottery operators. The document introduces licensing fees and an electronic accounting system. This decision is the first of its kind in 12 years and aims to strengthen oversight of the lottery sector.

Why the Issue Became Urgent

PlayCity argues that the lack of clear rules allowed lottery operators to work for many years without transparent control mechanisms. The agency is now requesting an investigation to determine how these gaming services were provided and whether any legal norms were violated.

PlayCity’s statement and the Cabinet’s new measures show that the government is beginning to pay closer attention to online gambling and its regulation.