Ukraine’s PlayCity has commenced a pilot project for a state-operated online monitoring system, known as DSOM, aimed at overseeing transactions within the country’s regulated gambling market. Launched this week, the initiative’s primary objective is to enhance regulatory oversight and ensure tax compliance among licensed operators. Eleven operators have been integrated into the platform on a trial basis, marking a significant move towards digital supervision of the gambling sector in Ukraine.
The DSOM platform is designed to monitor betting activities across the regulated gambling environment in near real-time. It captures bets, returns, and payouts as discrete, tamper-resistant transactions, each assigned a unique identifier to ensure data integrity. The system is capable of processing up to 10,000 transactions per second, providing authorities with a comprehensive view of market operations without collecting personal data or tracking funds outside the gaming environment.
Regulatory aims for the platform include improved tax compliance and data-driven oversight. PlayCity has outlined that the State Tax Service will utilize the tracked data to accurately calculate gross gaming revenue (GGR) and related taxes, including the military levy and personal income tax. The system’s architecture prevents the unauthorized alteration of submitted transaction records, ensuring transparency and reliability.
The DSOM features two interfaces: an internal one for regulatory agencies and an external one for gambling operators. New operators will gain access to the system upon securing a gambling license, with their details registered within one business day.
Following Ukraine’s legalization of gambling in 2020, PlayCity was designated the state agency responsible for regulating gambling and lotteries, assuming these functions from the Ministry of Digital Transformation. This followed the dissolution of the previous regulatory body, the Commission for the Regulation of Gambling and Lotteries (KRAIL), in April 2024, due to its inefficiencies in timely license issuance.
The introduction of this monitoring system comes shortly after PlayCity unveiled an online complaints platform aimed at addressing illegal gambling advertising. This recent initiative highlights PlayCity’s ongoing efforts to strengthen regulatory frameworks and enhance market transparency.
Despite the technological advantages DSOM brings, some industry observers have raised concerns regarding the potential compliance burden on operators and the system’s ability to handle large-scale data securely. These challenges underscore the importance of continued assessment and potential adjustments to the system to address operator concerns and ensure robust implementation.
In a related development, a Kyiv court recently convicted three individuals for operating an illegal gambling establishment. This case reflects the broader challenges facing regulatory bodies in enforcing compliance and combating illegal gambling activities.
Looking ahead, the success of DSOM’s pilot phase will be closely monitored by both regulatory authorities and market participants. Its outcomes may influence the broader regulatory landscape and potentially serve as a model for similar initiatives in other jurisdictions. The system’s full implementation and effectiveness in enhancing market oversight and tax compliance will likely become clearer as the pilot progresses and more operators are integrated into the platform.
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