Ukraine Shuts Down 133 Illegal Online Casinos: Details of a Major Special Operation
The Security Service of Ukraine (SBU), State Special Communications Service, National Commission for the State Regulation of Electronic Communications (NCEC), and the Ukrainian Gambling Operators Association (UGOA) conducted a joint operation on July 8, following an order issued on July 1.
Internet providers were notified on July 3 and required to comply within three working days.
Reasons for the Blockade
Scale of the Illegal Market
According to UGOA estimates, the blocked operators generated between UAH 3 to 5 billion in revenue every quarter. These funds operated outside state control, posing serious risks to both the economy and the public.
Enforcement Measures
The operation involved both technical and software-based tools, including:
- blocking IP addresses and websites,
- halting illegal payment processing,
- freezing P2P transactions,
- disconnecting operators from financial infrastructure.
Financial channels were cut off, making it significantly harder for offenders to resume operations—even via mirror sites.
UGOA’s Position
According to UGOA President Oleksandr Kohut, many of the illegal casinos are linked to Russia. They directly harm the state, legitimate businesses, and citizens.
These sites often reappear after being blocked, and pose major risks for users, such as:
- fraud,
- leakage of personal and financial data,
- no recourse for lost funds.
Regulatory Changes
Transfer of Authority to the Ministry of Digital Transformation
As of February 14, 2025, the Ministry of Digital Transformation oversees gambling regulation in Ukraine. This shift has improved oversight and sped up decision-making.
Launch of the “PlayCity” Agency
On March 21, 2025, the Cabinet of Ministers established a new body — the state agency “PlayCity”, tasked with supervising the gambling industry.
In its first two weeks, the agency identified and reported 824 illegal online casinos to the NCEC for blocking.
Economic Impact
According to UGOA data:
- up to 50% of Ukraine’s gambling market operates in the shadows,
- the state loses up to UAH 10 billion in taxes annually due to illegal gambling,
- in 2024, legal operators paid over UAH 17 billion in taxes,
- and an additional UAH 6.4 billion from January to April 2025.
Conclusion
The mass shutdown of 133 illegal online casinos marks a major step in tackling Ukraine’s shadow gambling market.
The coordinated actions of the SBU, State Special Communications, NCEC, and UGOA demonstrate the effectiveness of a comprehensive approach.
Such operations reduce risks for users, safeguard national tax revenue, and create fair competition for licensed operators.