Ukraine arrests online casino with $50m annual turnover

January 29, 2025

Ukraine arrests online casino with $50m annual turnover

Law enforcement authorities in Dnipro, one of Ukraine’s largest cities, have arrested the organisers of an online casino that operated for four years without a proper licence. The group, which faces up to 12 years in prison, organised international broadcasts of table games and laundered money received in cryptocurrency.

This was reported by the Ukrainian Interior Ministry on its official website on 19 January.

Audiences in Europe and Asia

The cyber police department found that the company’s managers had entered false data into the official register of CRGL licences. Since 2021, the operator has provided access to gambling with a licence that does not correspond to the scope of its activities. The audience of this online casino with live table games were citizens of Ukraine, as well as European and Asian countries.

Co-owner under sanctions

According to the investigation, this company was managed by a corporation. This company is co-owned and chaired by a man under personal sanctions imposed by presidential decree. After the sanctions were imposed, another co-owner became the ultimate beneficiary, acting as deputy chairman of the company’s board. Local media reported family ties between the co-owners.

Most cases of personal sanctions since 2022 have involved former and current officials, public figures, and businessmen linked to pro-russian assets.

Cryptocurrency and payment systems used for settlements

The gambling operators used both cryptocurrency and international payment systems for settlements. After depositing funds, players could choose the croupier, the game and the amount to bet. In particular, croupiers were recruited through employment websites under the guise of TV presenter recruitment advertisements.

Withdrawals were made once the casino administrators had determined the balance through well-known payment systems. Subsequently, the funds obtained from illegal activities were legalised through various schemes, particularly through the sale of cryptocurrencies.

The estimated annual turnover of funds of the illegal casino was more than 2 billion hryvnia, equivalent to $50 million.

Dnipro raid results

Police officers conducted a raid in the city of Dnipro and found an improvised TV studio in a warehouse. More than 120 people were found running the operation in several large gambling rooms with card and roulette tables. Over 60 gaming tables and roulette machines were seized, as well as servers, computer equipment and other evidence of criminal activity.

Investigations are being conducted as part of criminal proceedings. Under Ukrainian laws on abuse of power and fraud, the organisers face up to 12 years in prison and confiscation of property.

Ukraine tightens control over the gambling market

Earlier this year, the President of Ukraine signed into law “On Amendments to Certain Legislative Acts of Ukraine to Combat Gambling Addiction and Improve State Regulation of the Organisation and Conduct of Gambling and Lotteries”, in accordance with draft law 9256-d.

Among the innovations is introducing a mechanism to restrict access to illegal gambling sites and mobile applications. Gambling payments will only be made possible through current bank accounts. It is planned to strengthen control over the legality of the market by prohibiting the use of other payment services.

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