According to the Bureau, a gambling operator in Ukraine is accused of evading payment of UAH1.20bn in taxes. The operator holds a licence in the country but has been found to engage in unlicensed online gambling. Over 30 unauthorized gambling sites resembling the licensed operator’s website were discovered. The Bureau also uncovered a large-scale tax evasion scheme through misdirection of payments. Furthermore, the operator’s actual location does not match the address specified in its licence and there is evidence of staff concealing important information. As a result, UAH700m has been seized from the operator’s account. A pre-trial investigation is underway, with the prosecutor general’s office involved. The operator involved in the case has been suggested to be Cosmolot, although the company denies the charges and has filed a complaint with the court.
This case represents another effort by Ukrainian authorities to combat illegal gambling. In the past year, new laws have been implemented and additional measures have been proposed. One law specifically focuses on anti-money laundering and counter terrorist financing procedures for organizations. This law has led to stricter inspections for operators in the country. Another proposal aims to prevent banks from providing loans to self-excluded consumers, requiring lenders to conduct more thorough checks.
There may also be changes in the regulatory framework of Ukraine’s gambling industry, as the future of the national regulator KRAIL is uncertain. A draft law has been submitted suggesting the dissolution of KRAIL and the establishment of a new executive body. The proposal is fueled by KRAIL’s failure to issue timely gambling licences. Currently, KRAIL operates as a collegial body consisting of a chairman and six members. However, due to the country’s conflict with Russia, some Commission members have been mobilized into military service, resulting in delays in regulatory work and licence issuance.
