PlayCity working with Ministry of Digital Transformation to amend Tax Code and three laws – state agency’s chief

PlayCity, the state agency for the control of gambling and lottery businesses, is working with the Ministry of Digital Transformation to amend four key laws that affect the market. These include the law on lotteries, the Tax Code, the relevant law on state regulation of gambling, and the law on advertising, according to PlayCity CEO Hennadiy Novikov.

"The most sensitive and, in my opinion, most necessary changes are in tax legislation," Novikov said in an interview with Interfax-Ukraine.

According to him, currently, for example, a person betting UAH 1,000 with a bookmaker with odds of 1 to 1.1 would have to receive UAH 1,100 and pay 23% personal income tax and a military tax on UAH 0.100. However, under current tax legislation, the entire UAH 1,100 payout is subject to taxation, so the player receives less than they invested.

"In my opinion, this model is unfair and doesn’t encourage legal gambling. This situation is even more problematic compared to the illegal market. If it’s not a fly-by-night operation, but a more or less stable illegal operator, then the player will likely receive the full payout," Novikov emphasized.

Regarding the possibility of increasing the overall tax burden on the gambling business, according to the head of PlayCity, there is currently no final position.

"We still need to discuss this internally, particularly with the Ministry of Digital Transformation and other relevant bodies, to clearly understand which decisions are appropriate and what consequences they will have. But the situation with the winnings tax definitely needs to be addressed," Novikov noted.

As reported, since February 4, 2025, the Ministry of Digital Transformation has been responsible for formulating and coordinating state policy in the gambling sector. On March 21, the Cabinet of Ministers approved the creation of a new executive body – the PlayCity agency – which officially replaced the previous regulator, the Commission for the Regulation of Gambling and Lotteries, on April 1.