Ukraine’s legal gambling sector struggles with limited payment options due to a banking quasi-monopoly, according to PlayCity chief Hennadiy Novikov, who calls for National Bank of Ukraine intervention.
Key Takeaways:
- Only three banks service gambling under Mastercard and one under Visa, creating a quasi-monopoly
- Banks are refusing to service legal operators while illegal gambling uses alternative payment methods
- PlayCity head calls for greater involvement from the NBU and Bureau of Economic Security
Banking Bottleneck Hampering Legal Gambling
Ukraine’s regulated gambling market faces a severe payment processing constraint that threatens its development. According to Hennadiy Novikov, head of the state gambling regulator PlayCity, the country’s legal operators are caught in a banking quasi-monopoly that requires urgent attention.
“Essentially, a quasi-monopoly has formed. For what reasons this happened. We are still trying to determine. This issue can only be resolved with the active participation of the National Bank of Ukraine, because it is the regulator of the banking sector,” Novikov explained in an interview with Interfax-Ukraine.
The situation is particularly concerning as only three banks currently service gambling businesses under the Mastercard payment system, while just one supports Visa transactions. Market sources indicate that state-owned Sense Bank holds the largest share of gambling payment services.
Legal Operators Disadvantaged While Illegal Market Thrives
The banking restrictions create an uneven playing field where licensed operators struggle despite having paid required fees and obtained proper authorization.
“As a result, while banks refuse to service legal operators, the illegal market uses alternative mechanisms. These include P2P payments, substitution of MCC codes, the use of cryptocurrencies, and other schemes,” Novikov added.
Currently, 34 licensed operators are active across all segments of Ukraine’s gambling market. Meanwhile, the National Bank of Ukraine reported to Interfax-Ukraine that it has not received additional requests from banks willing to service gambling businesses.
Regulatory Oversight and Enforcement Challenges
Novikov highlighted the Bureau of Economic Security as another key government body that could significantly impact illegal gambling operations, both online and offline.
“At this time, I am not aware of any completed criminal proceedings in which individuals involved in illegal online casinos, those who actually built these businesses, have been identified and held accountable,” he stated.
The PlayCity head emphasized that illegal gambling operations represent complex systems with clearly distributed roles, including traffic generation through affiliate marketing and advertising tools, rather than simply foreign entities targeting Ukraine.
Since February 2025, Ukraine’s gambling policy has been coordinated by the Ministry of Digital Transformation. On March 21, the Cabinet of Ministers established PlayCity as a new central executive authority reporting to the Ministry, officially replacing the former Commission for the Regulation of Gambling and Lotteries as of April 1.
I remember the first time I saw Kai Tak, Hong Kong’s gambling city, I thought I was in a fairy tale. All the lights blinking, the music and the monumental buildings, what 9-year-old wouldn’t think they’ve come to a magical place? It was my father who brought me, dragging me along and when inside I was hit by the smell of frying duck. As soon as I hit 21 I returned to Kai Tak, A bit nervous to see if my mind had embellished the memory, but it hadn’t. Kai Tak was still a magical place. I decided I wanted to spend as much time as I could at this place, so I did.
