As of April 2024 in Ukraine blocked more than 2 500 websites that provided the activity of gambling, also investigated more than 450 criminal offenses on the facts of their illegal organization, reports the Office of the Prosecutor General.
“As of April 2024, more than 450 criminal offenses are being investigated for illegal organization of gambling. Suspicion of 21 persons has been reported. The indictments against 72 people, including 7 indictments against 68 participants of criminal groups were sent to court,” – said in the message published on the website of the Office of the Prosecutor General.
“According to the results of recommendations sent by law enforcers to block illegal resources so far blocked more than 2,500 websites that provided the activity of conducting gambling and which hosted online casino resources without the appropriate license,” – noted in the message.
In 2023, law enforcers registered 169 offenses on the facts of illegal organization of gambling, 74 persons were notified of suspicion. 52 indictments against 97 people were sent to court. Law enforcers seized more than 7 thousand units of computer and other equipment, conducted about 500 searches and 700 inspections of addresses. The activity of 10 casinos was stopped. 10 indictments were sent to court against 42 people who are members of criminal groups.
“Prosecutors also provide procedural guidance in proceedings on a number of large companies involved in the organization and operation of illegal online casinos. Among examples: provided procedural guidance in criminal proceedings on the legalization of funds from illegal online gambling for a total of UAH 4.8 billion,” – stated in the message.
In addition, law enforcers are carrying out a pre-trial investigation into the sub-sanctioned legal entity, which is under the control of structures and citizens of the Russian Federation, organized and conducted illegal betting activities on the basis of resources of the international bookmaker’s office.
As reported, on April 20, the President of Ukraine Volodymyr Zelensky enacted the decision of the National Security and Defense Council of Ukraine “On countering the negative consequences of gambling on the Internet”.
According to the Opendatabot Index, the top 10 most successful gambling companies increased their wealth 28 times last year. The Index includes 9 online casinos and 1 lottery operator. SpaceX (Cosmolot brand) became the leader, and Favbet (FAVBET brand) had the largest increase in earnings – 425 times.
The leaders of the gambling industry in Ukraine earned UAH 54.92 billion in 2023. This is 28 times more than in 2022 – UAH 1.94 billion.
The top list includes 9 online casinos, two of which are also engaged in betting activities, and 1 lottery operator. While in 2022, only a third of businesses from the Index managed to make a profit – we are talking about SpaceX, Ukr Game Technology, and Nate’s APPS – last year was profitable for all companies in the top 10.
SpaceX (known as Cosmolot), owned by Sergey Potapov and British businessman Arnulf Damerau, became the leader in the gambling business. The company’s revenue in 2023 exceeded the previous year’s figures by 51 times, reaching UAH 27.95 billion.
Favbet (FAVBET brand), owned by Andriy Matyukha, took the second place in the top list. In 2023, the company’s revenue increased by a phenomenal 425 times to UAH 9.79 billion. This is the largest increase among all gambling companies included in the Index. In addition to online casinos, the company is also engaged in betting activities.
Ukr Game Technology (PIN-UP brand) of Igor Zotko, last year’s leader of the rating, failed to hold the top spot despite a 4-fold increase in revenue over the year. With a revenue of UAH 3.62 billion, the company dropped to 3rd place.
Having increased its revenue 103 times and earned UAH 3.4 billion, Slots U.S.A. by Pavlo Zhurilo took the next position in the top. This company owns 2 online casino brands – SLOTOKING and 777.
The fifth place with revenue of UAH 3.1 billion is occupied by Vbet (VBET brand), owned by Armenian citizen Rudolf Poghosyan. In 2023, the business managed to increase its revenue 19 times compared to 2022. VBET generates revenue from online casinos, online poker, and betting.
Next in the top is GameDev (SLOTS CITY brand), owned by Israeli citizen Yaakov Finkelstein. The company’s revenue amounted to UAH 2.5 billion last year. This is 35 times more than in 2022.
The seventh place is taken by First Element (F1RST brand), owned by Artem Yushkov and Sergey Belik. The company managed to increase its revenue 43 times and earned UAH 2 billion last year.
Lemon (ChampionCasino brand), owned by Ruslan Drozdov, took the 8th position with a revenue of UAH 1.42 billion. This is 357 times more than in 2022.
The last online casino that managed to get to the top is Nate’s APPS (Super Gra brand), owned by a British citizen, Chubini Irakli. The company increased its revenue 55 times and earned UAH 604 million.
The Ukrainian National Lottery (UNL) was the only lottery operator included in the Index. Its revenue increased 2.5 times last year and amounted to UAH 516 million.
UNL is owned by a Chinese company founded by British businessman Foggy Michael John.
Who dropped out of the top in 2024?
Lottery operator M.S.L. (MSL brand) and Volna 4444 (Slot machine halls, 4444 brand) left the Opendatabot Index rating, having received only 1.5 times more revenue in 2023.
Last year, Favorit Casino received 8% less revenue than in 2022 and dropped out of the rating. And the license of Joker USA (JOKER brand) was revoked by KRAIL in December 2022.
Context.
In April, the Verkhovna Rada Committee on Finance, Taxation and Customs Policy approved Draft Law 9256d on the liquidation of the Commission for Regulation of Gambling and Lotteries (CRGL) and called for tighter control over the gambling business.
The draft law provides for the restriction of gambling advertising, limitation of visits and participation in gambling by vulnerable categories of the population during martial law, and establishment of additional criteria for license revocation.
President of Ukraine Volodymyr Zelensky has signed Verkhovna Rada’s bill No. 2285-d on state regulation on organizing and conducting the gambling activity.
The Ukrainian parliament said on its website that the bill was returned with the signature of the head of state on August 11.
The Verkhovna Rada of Ukraine supported bill No.2285-d on state regulation on organizing and conducting the gambling activity.
Some 248 MPs voted for relevant bill No. 2285-d at second reading at a meeting on Tuesday.
The law establishes a list of gambling activities that are permitted in Ukraine. In particular, it includes gambling in casino and online gambling establishments, betting activities at betting shops and via the Internet, issuing and conducting lotteries, and playing poker via the Internet.
The law allows the placement of casinos in Kyiv on the territory of five-star hotels, and for other settlements the law allows them to be placed in hotels of four and five star categories.
MPs also returned the requirement to place gambling establishments at a distance of at least 500 meters from educational institutions, and also expanded the circle of people who could apply to the court with a statement of limitation.
The law also provides for an online gaming machine monitoring system.
Ukraine’s Verkhovna Rada has returned bill No. 2285-d on the public regulation of activities in the sphere of organization of gambling for refining by the committee and preparing it for repeated first reading. The document was registered in parliament on December 18.
An Interfax-Ukraine correspondent has reported that MPs did not support the bill at first reading casting only 213 votes with at least 226 required, while 243 MPs backed the decision to send the document for repeated first reading.
As reported, the Cabinet of Ministers registered bill No. 2285 in the parliament, and MPs submitted seven more alternative documents, among is finalized bill No. 2285-d, authored by MP Oleksandr Dubinsky (the Servant of the People parliamentary faction).
The bill proposes to limit the number of licenses for gambling establishments. In addition, it is proposed to establish mandatory verification of players when accepting bets and registering winners in the online monitoring system.
At the same time, the government bill proposes to establish special gambling zones for casinos and slot machines: the territory of five-star hotels for casinos and three star and higher rated hotels for slot machines.
The law on the national budget for 2020 provides for revenues from licenses in the field of gambling in the amount of UAH 4.4 billion, which will be sent to the budget’s special fund, and everything that exceeds the amount specified in the law will be spent on subventions to local budgets to finance various educational and healthcare programs.
The majority of Ukrainian citizens do not support legalization of gambling in the country, according to a poll conducted by the Kyiv International Institute of Sociology (KIIS) on December 1 through December 12 as part of the KIIS Omnibus regular multi-targeted population survey.
To the question “Do you support the legalization of the gambling business?” 56% of respondents said they did not fully support it. Another 19% of respondents support the legalization of gambling, but on condition that special gambling zones are made for this or the places are localized. Only 18% of respondents fully support the legalization of gambling.
At the same time, the respondents were asked what games can be legalized in Ukraine. Almost half of the respondents (49.7%) believe that they can be lotteries, 22.1% – bookmakers’ odds, 18.7% – casinos, 9.5% – online casinos, 6.9% – gambling with cards. Some 37% said that none of the gambling can be legalized in Ukraine.
According to the results of the study, 52% of the inhabitants of Ukraine react negatively about the fact that President Volodymyr Zelensky approves the legalization of gambling. 35% of respondents have a positive attitude to this initiative of the president. 62% of respondents know that several bills on the legalization of gambling are under consideration in the Verkhovna Rada.
The survey was conducted in 110 populated settlements (PSU) in all regions of Ukraine, except for Crimea and the uncontrolled areas of Donetsk and Luhansk regions. During the field stage, 2,043 questionnaires were collected. The statistical error of the sample (with a probability of 0.95 and with a design effect of 1.5) does not exceed 3.3% for indicators close to 50%, 2.8% for indicators close to 25%, 2.0% for indicators close to 12%, and 1.4% for indicators close to 5%.
