Ukraine's Lottery Vertical Prepares for New Licensing Regulations

This document will outline the criteria for industry participants and the licensing tender. These requirements have not been revised for over ten years.

Main Compliance Criteria

The country's regulator, PlayCity, states that the initiative creates a transparent, competitive process. The project spans 60 days, during which a commission assesses niche businesses' compliance with defined standards and awards points based on each indicator.

Among obligatory requirements are:

• at least 3 years of market experience;
• a network of a minimum of 5,000 distribution points;
• over 5,000 electronic lottery terminals.

Operators with an existing mobile application and a website using the .ua domain will qualify for extra benefits. Additionally, the length of work of the CEO (at least 3 years) and the top manager in charge of technical processes (minimum 1 year) will also be considered.

Financial Requirements and Market Conditions

The volume of the authorised capital also impacts the final score:

• ₴30–50 million accrues 5 additional points;
• ₴50–100 million — 7;
• exceeding ₴100 million — 10.

The price of the Ukrainian gambling permit to conduct draws is projected to be 28,000 minimum wages, presently amounting to ₴224 million (around $5.3 million).

Currently, the sphere operates under the transitional provisions of the “On State Lotteries” law, enacted in 2012. The existing brands continue to function under outdated certificates and do not contribute licensing fees to the national treasury. Although new regulatory conditions were intended for approval in 2013, the process has been deferred, resulting in an essentially uncertain state within the industry.

The forthcoming regulation is poised to serve as a significant step toward enhancing transparency and stability within the nation’s raffle segment. Niche companies will benefit from clear guidelines for planning infrastructure, investments, and technological solutions.