Large-Scale Investigation into Illegal Gambling Operations
Law enforcement agencies in Kyiv have uncovered a large-scale illegal gambling scheme involving a network of unlicensed online casinos. According to the Bureau of Economic Security, the total незаконный доход (illegal proceeds) is estimated at approximately UAH 5 billion.
The investigation covers not only the organization of illegal gambling activities but also a sophisticated money laundering scheme involving cryptocurrencies and offshore entities.
Who Is Behind the Scheme
According to investigators, a group of ten individuals was involved in organizing the illegal business. Among them:
- two are Ukrainian citizens,
- two are Russian citizens (notified of suspicion in absentia),
- the whereabouts of seven other suspects are currently unknown.
The group reportedly administered at least five online platforms. Some of these websites had previously operated legally but were relaunched under the same names after their licenses were revoked.
How the Online Casino Scheme Operated
The scheme relied on modern financial tools and consisted of several stages:
1.Cryptocurrency Payments
Players funded their accounts primarily using stablecoins, particularly USDT. This approach allowed operators to bypass traditional financial controls and made transaction tracking more difficult.
2.Fund Transfers via Foreign Entities
The funds were initially accumulated in accounts of a company registered in Estonia. They were then distributed across offshore jurisdictions, including Curaçao.
3.Money Laundering
At the final stage, crypto assets were converted into various currencies and integrated into the legal financial system, effectively laundering illicit proceeds.
Criminal Charges and Legal Qualification
The suspects face the following charges:
- organizing and conducting gambling activities without a license (Part 2, Article 203-2 of the Criminal Code of Ukraine),
- legalization of property obtained through criminal means (Part 3, Article 209 of the Criminal Code of Ukraine).
So far, only one individual has been officially served with a notice of suspicion.
Context: Budget Losses and New Regulation
Illegal gambling remains a significant issue in Ukraine. According to Danylo Hetmantsev, head of the parliamentary tax committee, the state budget lost over UAH 30 billion in tax revenues in 2024–2025 due to similar schemes.
To strengthen oversight, licensing of the gambling industry has been transferred since 2025 to a new regulator — the agency PlayCity.
Conclusion
This case highlights how illegal gambling operations adapt to modern realities by leveraging cryptocurrencies and international financial infrastructures. Despite increased regulation, combating the shadow economy remains a major challenge for the state.
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