Transfer of powers to KRAIL

Transfer of powers to KRAIL

To the Ministry of Digital Transformation of Ukraine: 

a new stage in the regulation of the gambling business

In early 2025, the Ukrainian gambling industry was on the verge of significant changes. The government decided to transfer the powers of the Commission for the Regulation of Gambling and Lotteries (CRAIL) to the Ministry of Digital Transformation of Ukraine (Mintsyfra). This decision has already caused a wide resonance among both market participants and experts in the field of public administration.

Why was this decision made?

Since its establishment in 2020, KRAL has performed functions of licensing, supervision and control over the activities of gambling operators. However, accusations against the commission have increased every year - from inefficiency and bureaucracy to corruption and delaying the process of issuing licenses. In conditions of war and the need to quickly attract investment, the government decided to reformat the system of regulating the gambling market.

The Ministry of Digital Affairs has already proven itself as an agency capable of quickly implementing digital solutions, effectively administering processes, and developing transparent services. The authorities are confident that transferring gambling regulation functions to this ministry will lead to deregulation, reduce corruption risks, and accelerate decision-making.
What powers will be transferred to the Ministry of Digital Affairs?

The Ministry of Digital Affairs will receive almost the entire range of powers of KRAL, in particular:

• issuance and cancellation of licenses to gambling and lottery operators;
• monitoring compliance with gambling legislation;
• monitoring compliance with license conditions;
• implementation and administration of state registers related to gambling;
• ensuring the operation of the online monitoring system for gambling operators.

What will change for business?

The main emphasis will be on the digitalization of services. It is planned that obtaining licenses and other permits will be possible electronically through portals and systems that are already being developed by the Ministry of Digital Affairs. This should simplify access to the market, speed up approval processes, and minimize the subjective factor in decision-making.

Also, as part of the reform, the size of license fees and requirements for operators may be revised, which will make the market more competitive and transparent.

What challenges does the Ministry of Digital Affairs face?

Delegation of authority – a complex process that requires:

• transformation of the regulatory framework;
• technical integration of all KRAIL data and systems into the infrastructure of the Ministry of Digital Affairs;
• training of specialists who will carry out control and regulation.

In addition, the ministry will have to build effective communication with the market to maintain trust and ensure predictability of the rules of the game.

Market prospects.

If the Ministry of Digital Affairs manages to meet its objectives, Ukraine could become one of the most transparent and technologically advanced gambling jurisdictions in Eastern Europe. This will attract both new players and investors, which is especially important in the context of the post-war economic recovery.

However, the success of the reform will depend not only on the political will and technical capabilities of the Ministry of Digital Economy, but also on how quickly businesses adapt to the new rules.
Result.

The decision to transfer the powers of KRAL to the Ministry of Digital Transformation of Ukraine is a step that could radically change the gambling market. If the reform is properly implemented, Ukraine will receive a modern, transparent and effective system of regulating the industry, which will meet the best world standards.

Dynamics of tax revenues and license fees from the gambling business in Ukraine (2021–2024)

2021 year

• License fees: UAH 1.34 billion;
• Taxes from operators' activities: UAH 700 million;
• Total revenue: UAH 2.04 billion; (First year after legalization. Slow start due to lengthy licensing and operator launch procedures.)

2022 year

• License fees: UAH 1.58 billion;
• Taxes from operators' activities: UAH 1.2 billion;
• Total revenue: UAH 2.78 billion; (The market began to develop actively, despite the start of a full-scale war. Taxes increased due to the launch of online casinos and bookmaking companies.)

2023 year

• License fees: UAH 2.2 billion;
• Taxes from operators' activities: UAH 1.9 billion;
• Total revenue: UAH 4.1 billion; (Significant increase in revenue due to legalization of new operators and increased control over financial flows. The contribution of the online sector is growing.)

2024 (preliminary data)

• License fees: UAH 2.4 billion;
• Taxes from operators' activities: UAH 2.5 billion;
• Total revenue: UAH 4.9 billion; (Record year. Strengthening state control and digitalization of procedures increased the efficiency of tax collection.) Total budget revenues for 2021–2024.
  UAH 13.82 billion

Main trends:

• Online gambling brings in up to 60% of all revenue.
• Strengthening control by KRAL in 2023 allowed for increased tax collection.
• Licensing of gambling halls and casinos.