PlayCity — A New Face for Old Schemes or a Chance for Real Change?

That means the new body will be under the control of Mykhailo Fedorov — a figure whose reputation has been increasingly questioned in recent years.

The news sparked a wave of reactions — ranging from sarcastic support to outright confusion. But behind the bright signage lies more than just a rebranding. So, what’s really going on?

PlayCity: Cosmetic Renovation or a New Era?

Officially, PlayCity is being presented as a leap forward in regulating Ukraine’s gambling industry. Its stated goals include the digitalization of licensing, real-time monitoring of bets, and combating illegal operators. According to social media posts and public statements, the reform could bring an additional 10 billion UAH in annual tax revenue, open the market to international companies, and help pull the industry out of the shadows.

Sounds promising — but for now, it's just a shell without substance. The actual implementation of these ambitious goals is full of unknowns.

Ukraine’s gambling market history can be divided into three phases. The first — a chaotic launch after legalization in 2020, with licenses handed out freely and minimal taxation. The second — a crackdown on tax evasion schemes and scandals involving KRAIL, including allegations of corruption and ties to Russia. The third phase begins now with PlayCity — which is supposed to usher in transparency and order.

But can Fedorov’s team deliver, considering the burden of the past?

Mykhailo Fedorov: From Diia to PlayCity

Mykhailo Fedorov, Minister of Digital Transformation, has long been in the spotlight. His flagship project — the Diia portal — became a symbol of digital Ukraine, but also a magnet for serious accusations.

Since its launch, all payments through Diia were exclusively processed by a single financial company — Yedyny Prostir (Unified Space). Investigative reports, including one by Ekonomichna Pravda in 2023, allege the company is linked to Russian capital. Its nominal owner, Ihor Zotko, was allegedly acting in the interests of Russian banker Ihor Fisun — who has connections leading directly to the family of Russian Prime Minister Mikhail Mishustin.

Furthermore, former KRAIL officials and Zotko himself were arrested on charges of state treason and laundering Russian money. Case files suggest that via technological software integrated into Ukraine’s infrastructure, Russian agents not only collected citizens’ data but also tracked Ukrainian military positions.

This isn’t just corruption — it’s a national security threat. And according to sources, it all happened with the tacit approval — or perhaps even awareness — of Mykhailo Fedorov.

Now, the same Fedorov is gaining even more power, taking over PlayCity. Coincidence? Or is this the continuation of an old game, just under a new label?

Russians in the Game: From Diia to the Casinos

The connection between Ukraine’s gambling market and Russia is not new. As early as 2023, the Royal United Services Institute highlighted gambling in Ukraine as an unexpected but important channel of Russian influence.

Illegal casinos — such as Pin-Up — are directly linked to Russian businesses, including relatives of Mishustin. Through Diia and affiliated payment systems, Russians could not only launder money but also access critical data.

So, will PlayCity change anything? As of now, there are no guarantees that automated licensing will stop dirty money from slipping in. Who will vet the new operators? How will they prevent mirror sites that legal companies use to dodge taxes? And most importantly — how will we avoid a repeat of the scenario where key officials of the regulator end up behind bars for collaborating with the enemy?

Reputation Risks and Power Struggles

For the Ministry of Digital Transformation, PlayCity is not just a bold initiative — it’s also a potential ticking time bomb. Shadow operators are reportedly already spending millions to discredit Fedorov’s agency — this is confirmed by anonymous sources and online leaks.

Add to this the ambitions of law enforcement bodies, which traditionally view the gambling market as a source of revenue. The battle for control promises to be fierce, and the Ministry’s reputation could suffer significantly.

Why PlayCity — Not HraiMisto?

And finally, a symbolic question: why the English name? In a country where language is closely tied to national identity, the choice of PlayCity instead of something like HraiMisto seems strange at best. While minor in the context of systemic issues, this detail speaks volumes. Is Ukraine still looking outward for approval, even in branding — instead of asserting its own identity?

Conclusion: Opportunity or Trap?

PlayCity could mark a fresh start for Ukraine’s gambling industry — if the Ministry of Digital Transformation can build a transparent system, eliminate corruption, and drive out Russian capital.

But for now, too many questions remain unanswered. Fedorov’s past and the scandals around Diia suggest that behind the flashy banner may lie familiar schemes. The main concern — that a few years from now, PlayCity’s new leadership could share the same fate as KRAIL’s: arrested, accused of treason, and laundering money.