PlayCity, Ukraine’s state gambling and lottery regulator, blocked Polymarket this week. The agency recognised the platform’s activities as bookmaking. PlayCity’s head said Ukrainian users will only be able to bet on the platform once it obtains a licence.
In a statement to Interfax-Ukraine, PlayCity’s head, Hennadiy Novikov (pictured), said Ukrainian legislation clearly defines gambling as betting on events, and that any platform offering this must have a licence.
Compliance with the legal framework
PlayCity emphasises that the block is regulatory in nature. Its purpose is to protect Ukrainian users and ensure compliance with the legal framework of the gambling market. The statement also notes that Polymarket permitted bets using cryptocurrency, which is prohibited under Ukrainian gambling law.
‘The platform’s domain has been added to the public register of prohibited internet resources. Providers are obliged to block access to sites that promote unlicensed gambling,’ said the regulator.
The agency can only restore access to the platform without a licence after ruling out the possibility of betting from within Ukraine. To achieve this, the platform’s owner must submit an application to PlayCity and the National Commission for State Regulation in the Sphere of Communications and Informatisation, requesting that the possibility of participating in betting be completely blocked for users. In this case, the site will only be available to view general information.
The total value of bets placed on Ukraine on Polymarket exceeds $270M
The Polymarket domain was previously added to the open register of prohibited internet resources due to the lack of a gambling licence. The Commission issued the decision on 10 December 2025, which came into force on 12 January 2026. The Commission cited the lack of a local licence to organise gambling as the legal basis for the block.
According to Forbes Ukraine, approximately 240 bets related to Ukraine had been settled on Polymarket by 24 December 2025. The total value of these bets was over $270 million, with around 120 bets worth over $140 million still active. For comparison, the platform was blocked in neighbouring Romania after reaching a betting volume of $600 million.
The combination of large-scale markets related to events in Ukraine and the use of open intelligence increased public and regulatory pressure on the platform. According to Crypto Watch Daily, experts note that the regulator’s response was accelerated by the activation of ‘military markets’ on the platform.
Ukrainian officials had previously criticised the gamification of the conflict, and tensions peaked after the platform began using data from the DeepState project to calculate bets on questions about territorial occupation. The project specialises in collecting open intelligence information.
Launch of an online monitoring system for licensed operators
On 14 January 2026, the Ukrainian government adopted a resolution appointing the state-owned enterprise Diya as the technical administrator of the State Online Monitoring System for Gambling (DSOM), alongside efforts to curb illegal gambling. Deputy Minister of Digital Transformation Natalia Denikeeva said that this is the final step before the DSOM is put into commercial operation.
According to an official statement on the Ministry of Digital Transformation website, a tender for the second phase of the system’s implementation will be announced soon. The system is expected to track winnings and slot machines, monitor compliance with responsible gaming principles, and record cryptocurrency transactions. After the launch, licensed operators will be given six months to connect to the system.
Novikov noted that the project is in the final stages of securing funding, as no funds have yet been allocated to this key project in the state budget. Based on consultations with IT companies, the estimated cost of the second phase of implementation was UAH 45 million ($1M) in 2025. ‘We will refine this figure for the second phase. The situation in the country has changed, the hryvnia exchange rate has shifted and the market itself has evolved, so the amount may be adjusted,’ he added.
This article was first published in Russian on 16 January 2026.
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