Since the legalisation of online gambling in July 2020, Ukraine has embarked on a merciless battle against illegal operators. In 2024, the authorities closed more than 2,500 illegal sites and launched investigations against organised criminal networks. Faced with this proliferation and the ingenuity of fraudsters, a novel initiative was born: the development of a mobile application to spot illegal casinos in real time. The concept is still discreet, but it marks a new stage in the war against unauthorised gambling.
When technology comes into play
The methods used until now have been based on DNS blocking, cascading filters and heavy-handed police intervention. In April 2024, the Attorney General’s Office reported more than 2,500 banned sites, more than 450 ongoing investigations and around a hundred indictments. Despite these efforts, underground casinos continue to circumvent borders, creating “mirrors” on new domains and operating via VPN or encrypted messaging.
To move up a gear, Ukrainian legal players and the authorities are working together to develop a mobile application. Its role? To enable everyone (citizens, regulators, police) to immediately report a suspicious site, app or advert. The application automatically analyses the elements reported, compares them with a public database, and alerts the regulatory bodies. The result is a faster, more coordinated response, without having to wait for conventional legal action.
Why now?
The need to act is linked to a number of factors:
- Social and economic gain: Illegal gambling is costing the State dearly: around 12 billion hryvnias (around €250 million) in lost tax revenue by 2023.
- Addiction and vulnerability: The number of gamblers becoming addicted, particularly among the military or people under stress, is a cause for concern for the public authorities. According to the Ministry, more than 4,500 casinos will be blocked in 2024, including 92 apps in the App Store.
- Organised crime: Some networks exploit the war and target soldiers to get them into debt, sometimes with alleged links to Russia.
- Technology and speed: Traditional blocking systems suffer from delays and limited adaptability: fraudsters create mirrors in just a few hours. The app provides an almost instantaneous response.
Challenges and limitations
The app still needs to be fine-tuned and rolled out:
- Legal scope and privacy: keeping reporters anonymous and avoiding harassment.
- Data accuracy: reliability of sources, avoid false positives/false negatives.
- Mass adoption: raise awareness, convince the public of its usefulness.
- Integration with ISPs: coordinate with providers to block effectively.
What happens next?
Ultimately, the Ukrainian government could:
- integrate the use of this app into KYC/AML policies;
- strengthen cooperation with Apple and Google (more than 50 apps blocked by July 2023);
- automate the blocking of mirrors as soon as they are detected.
By combining technology, public awareness and state coordination, this system could become an example of global regulation, at the crossroads between prevention and punishment.The Ukrainian application, which is still in the development phase, represents a turning point: it uses digital technology to step up the fight against illegal casinos. It offers a modern response to an old problem, structured around a citizen-based approach. All that remains is to disseminate it, make it reliable and protect it legally. If it lives up to its promise, Ukraine could become a global benchmark in the regulation of online gambling.