Current status of the betting market in Ukraine in 2026: 23% tax on winnings, liquidation of KRAIL, transfer of regulatory functions to PlayCity, and new reforms in the gambling market.
The most dynamic betting market in the region — and not just because of its size
The Ukrainian market for legal sports betting stands out against neighboring countries not only in volume but also in the speed of legislative changes.
Over the past few years, Ukraine has gone through several stages: a complete ban on gambling, re-legalization, the creation of a separate regulator, and the subsequent restructuring of the entire system of state control.
In 2025, the Commission for Regulation of Gambling and Lotteries — KRAIL was liquidated. Its functions were transferred to the new state agency PlayCity.
At the same time, the government increased its focus on player protection, advertising restrictions, self-exclusion, and the issue of gambling addiction, which gained particularly wide public resonance during the full-scale war.
A distinctive feature of the Ukrainian market is the taxation of winnings for individuals. When paid through a legal operator, personal income tax and military tax may be withheld from the winnings.
This is not a market that was simply "legalized and forgotten." The Ukrainian model continues to evolve, and the rules for bookmakers and player protection are clarified almost annually.
Let's explore how the market is structured today: how legalization began, why KRAIL ceased to exist, who regulates bookmakers now, how winnings are taxed, and what reforms are being discussed in 2026.
Chronology: from total ban to PlayCity
| Date | Event |
|---|---|
| June 2009 | The Verkhovna Rada introduces a complete ban on gambling, except for certain types of lotteries. The legal market virtually ceases to exist, and a significant portion of operators goes underground. |
| 2019 | The first major attempt to pass a law for the re-legalization of gambling fails to gain the necessary support in parliament. |
| August 13, 2020 | The President signs Law of Ukraine No. 768-IX "On State Regulation of Activities for Organizing and Conducting Gambling." Casinos, slot machines, poker, and betting activities are legalized again in the country. |
| September 23, 2020 | The Cabinet of Ministers creates the Commission for Regulation of Gambling and Lotteries — KRAIL. |
| 2022–2024 | Amid the full-scale war, public discussion around gambling addiction intensifies, including among military personnel. Criticism of KRAIL's effectiveness and responsible gaming mechanisms grows. |
| March 25, 2025 | The Cabinet of Ministers adopts Resolution No. 336 on the liquidation of KRAIL. |
| 2025 | The functions of regulation, licensing, and control are transferred to the new state agency PlayCity ("PlayCity"). |
| 2026 | Market reform continues: limits on spending, restrictions on gambling participation time, enhanced advertising control, and new responsible gaming tools are being discussed. |
Who regulates the market today
After the liquidation of KRAIL, the functions of licensing, control, and state oversight were transferred to the new state agency PlayCity ("PlayCity"). This body is now responsible for regulating the legal gambling market in Ukraine.
One of the main tasks of the new regulator has been to increase the transparency of the industry, ensure compliance with legislation, develop responsible gaming tools, and improve the mechanisms for licensing operators.
Before registering with any bookmaker, it is recommended to check the presence of a valid license in the official register of operators published on the portal playcity.gov.ua.
| Parameter | Condition |
|---|---|
| Regulator | State Agency of Ukraine PlayCity |
| Previous regulator | KRAIL (2020–2025) |
| Legal framework | Law of Ukraine No. 768-IX "On State Regulation of Activities for Organizing and Conducting Gambling" |
| License register | Official PlayCity portal |
| Minimum player age | 21 years |
| Legal bookmakers | FAVBET, VBET, GGBET, BETKING, BETON, and other licensed operators |
Why KRAIL was liquidated
Despite KRAIL's key role in launching the legal gambling market after its re-legalization, over time, the commission's activities began to attract increasing criticism.
Public organizations, industry representatives, and government bodies pointed out several problems that, in their opinion, hindered effective market regulation.
- Corruption risks. Issues of transparency in the commission's work have been discussed almost since its inception.
- Insufficient player protection. Despite the existence of legislative mechanisms, the level of control over responsible gambling remained a subject of constant criticism.
- Gambling addiction. During the full-scale war, the issue of gambling addiction gained wide public resonance, including among certain categories of military personnel. It was after this that the topic of reforming the regulatory system became one of the priorities.
As a result, in 2025, KRAIL was officially liquidated, and its powers were transferred to the new state agency PlayCity, which is expected to provide a more modern model of state control, digitization of processes, and enhancement of responsible gaming mechanisms.
How to check a legal bookmaker
Before registration, it is enough to perform a few simple actions. This will take less than a minute but will ensure that the bookmaker is indeed operating under Ukrainian law.
- Check for a license in the PlayCity register.
- Ensure that the legal entity matches the one indicated on the bookmaker's website.
- Check age restrictions and identification rules.
- Review information about responsible gaming tools and self-exclusion.
- Do not register with operators that are not listed in the state register.
If a company is not listed in the official register of licensed operators, it is not considered a legal bookmaker in Ukraine, regardless of the brand's notoriety or the size of the bonuses offered.
Tax on winnings: how it works
One of the most discussed features of the Ukrainian market remains the taxation of winnings.
When paying out winnings, a licensed operator acts as a tax agent and automatically withholds the payments stipulated by law. The player typically does not need to calculate the tax or submit a separate declaration for such payments.
| Component | Rate |
|---|---|
| Personal income tax (PIT) | 18% |
| Military tax | 5% |
| Total withholding amount | 23% |
The military tax goes to the state budget of Ukraine and is used to finance the country's defense expenditures.
In addition, gambling organizers pay their own taxes as stipulated by Ukrainian law, including taxation of gross gaming revenue and company profits.
What is being discussed in regulation in 2026
Despite the extensive reforms of recent years, Ukrainian legislation in the field of gambling continues to actively evolve.
The Ministry of Digital Transformation of Ukraine, together with the new regulator, is considering additional measures aimed at enhancing player protection and increasing market transparency.
Among the most discussed initiatives are the development of responsible gaming tools, restrictions on gambling participation time, voluntary spending limits, improvement of self-exclusion mechanisms, and further digitization of state control.
Legal bookmakers note that any additional restrictions should maintain a balance between player protection and the competitiveness of the licensed market so that users do not switch to illegal operators.
Legal bookmaker vs. unlicensed operator
| Criterion | Legal bookmaker | Unlicensed operator |
|---|---|---|
| Regulator | PlayCity | None |
| License | Checked in the state register | No Ukrainian license |
| Tax on winnings | Withheld by the tax agent | Not regulated by Ukrainian law |
| Responsible gaming | Self-exclusion, limits, age checks | Not guaranteed |
| Dispute resolution | Can appeal to the regulator | Practically absent |
| Player age | 21+ | Not always controlled |
Frequently Asked Questions
Are sports bets legal in Ukraine?
Yes. After the adoption of Law No. 768-IX, betting activities became legal again, and the market operates under a state licensing system.
Who regulates the betting market?
Since 2025, state regulation has been carried out by the agency PlayCity, which replaced KRAIL.
What is the tax on winnings?
When paying out winnings, the licensed operator withholds PIT and military tax in accordance with the current legislation of Ukraine.
Why was KRAIL liquidated?
The reason for the reform was the need to modernize the state regulation system, enhance market transparency, and develop mechanisms for player protection.
What is the minimum age for betting?
The minimum age for participating in gambling in Ukraine is 21 years.
How to check a legal bookmaker?
Before registration, ensure that the bookmaker is included in the official register of licensed operators on the PlayCity website.
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