According to new research presented by the Association of Ukrainian Gambling Operators, the country’s illegal gambling market has expanded to 56.7% of total market value, The findings, based on a second Kantar study conducted between March and May 2026, suggest the unlicensed segment has increased from 52.1% in monetary terms. The illegal market is estimated to be worth at least UAH61.6bn (US$1.5bn).
Oleksandr Kogut, President of the Association of Ukrainian Gambling Operators, said the results were worse than expected and show that unlicensed operators continue to take share from the regulated market. He added that Ukrainian players continue to migrate to the grey market, with more than 80.6% of respondents saying they had used illegal online casinos or betting operators during the previous three months. The study was conducted among 2,500 respondents using the Kantar Access Panel and analysed consumer awareness and use of 56 gambling brands, including both licensed and unlicensed operators.
According to the Association, the main reasons players choose illegal gambling sites include faster payouts, cited by 49% of respondents, fewer restrictions on play, cited by 44%, better bonuses, cited by 37%, tax optimisation, cited by 25% and easier registration, cited by 18%. Smaller groups also cited cryptocurrency payments and the ability to bypass age restrictions.
The findings add pressure to Ukraine’s gambling reform programme, which is already focused on improving digital oversight and tax compliance. PlayCity, Ukraine’s regulator, has launched the pilot phase of its state online monitoring system, designed to track licensed gambling transactions in near real time and support more accurate calculation of gross gaming revenue and taxes.
The illegal market data suggests that monitoring licensed operators alone will not solve the broader problem. The Association argues that ineffective blocking of illegal websites, continued marketing by unlicensed brands, quasi-processing services used by illegal casinos and reputational pressure on the legal sector are all contributing to market leakage.
Kogut said blocking remains too slow, with illegal online casinos taking at least 10 days to remove, while mirror sites can be created within one to two days. The Association proposed a faster domain blocking mechanism to the regulator in February 2026, modelled on systems already used in Ukraine against phishing resources.
The findings underline the difficult balance facing Ukraine’s gambling authorities. The state is building stronger digital supervision of licensed operators, but the regulated market continues to face competition from illegal brands offering faster payments, fewer controls and more aggressive bonuses. For Ukraine, the risk is clear. If licensed operators face heavier compliance burdens while illegal platforms remain easily accessible, the market may continue to shift away from regulated channels. This would weaken tax collection, player protection and the credibility of the country’s post-legalisation gambling framework.
