Ukraine Intensifies Efforts to Combat Illegal Gambling Amid Ongoing Conflict
Ukraine’s Crackdown on Illegal Gambling
Ukraine is intensifying its fight against illegal gambling platforms, targeting offshore and underground operations believed to have connections to the Russian Federation. Authorities aim to dismantle these illicit networks that continue to operate unchecked online.
Recent Enforcement and Impact
The Security Service of Ukraine (SBU) recently closed down 133 unauthorized online casinos. These sites reportedly generated an estimated 5 billion Ukrainian Hryvnia each quarter, equating to roughly 125 million US dollars in revenue, highlighting the scale of the illicit market.
Collaborative Efforts to Tackle Illegal Gambling
The crackdown involved a coordinated effort between the SBU, the State Service of Special Communications and Information Protection, the National Commission for State Regulation of Electronic Communications, and other government agencies. Together, they have concentrated their efforts on eradicating illegal gambling services.
Additionally, the Association of Ukrainian Gambling Operators (AUGO) has played a critical role by offering technological support. This collaboration has enhanced the authorities’ ability to detect and block unauthorized gambling websites more effectively.
Links to Russia and Security Concerns
AUGO reported that most of the gambling sites shut down in the recent wave of enforcement had ties to Russia. It is believed that gambling operations are being exploited to fund Russia’s ongoing war against Ukraine, with Ukrainian citizens unknowingly contributing to the aggressor’s resources. Oleksandr Kohut, the president of AUGO, emphasized the association’s commitment and capability to remove illegal gambling operators from the market.
Challenges in Regulation and Leadership Changes
Failing to sufficiently control illegal gambling contributed to the collapse of the previous regulatory body, KRAIL, which has since been replaced by PlayCity. The former head of KRAIL, Ivan Rudyi, was arrested in December on charges related to his alleged support of Russian aggression through his inaction against Russia-linked illegal gambling sites.
His deputy has now taken over the regulatory position and is tasked with reforming the sector. Meanwhile, the SBU has increased its involvement, recognizing illegal gambling as a direct threat to national security.
Government Commitment to Eliminating Illegal Gambling
Earlier this year, Ukraine’s president pledged to intensify the country’s efforts to eradicate illegal gambling websites. The president highlighted the role these sites play in financing Russia’s war against Ukraine and vowed to continue the crackdown until these illicit operations are fully suppressed.