KRAL cancels licences of ‘Russian-controlled’ operators

KRAIL cancels licences of ‘Russian-controlled’ operators

Ukraine’s Gambling and Lotteries Regulatory Commission (KRAIL) has cancelled the licences of three operators, following security and law enforcement investigations.

The regulator stated that the Security Service of Ukraine (SBU) and the National Police in Kyiv had concluded the firms had not submitted sufficient evidence that they were acting in Russian interests. 

Play Fan Investment – which held both sportsbook and casino licences – and Alphagme and Joker UA, both casino operators, have subsequently had their licences revoked.

KRAIL asserted that the firms’ activities are ‘controlled by residents of the Russian Federation’, due to SBU and Police receiving inaccurate information. 

Specifically, Ukrainian licensees must clarify that they ‘do not act in the interests of residents of foreign countries that carry out armed aggression against Ukraine’, or help facilitate conditions for military conflict or use of military force against the nation.

The regulator stated: “KRAIL emphasises the need to strictly comply with the provisions of the current legislation of Ukraine, the inadmissibility of any ties between the organisers of gambling games and states carrying out armed aggression against Ukraine.”

KRAIL had previously faced criticism from some Ukrainian MPs, who argued that the regulator had failed in its duties to protect the country following Russia’s invasion, as the conflict nears its tenth month.

Despite this, the regulator has received the support of the Ukrainian Gambling Council (UGC), with Chairman Anton Kuchukhidze decrying a Minister’s proposal to liquidate KRAIL.

In the aftermath of Russia’s invasion of its western neighbour, there has been a strong backlash across the international betting and gaming industry, with many operators and suppliers calling for an end to Russian activity. 

The immediate fallout saw Parimatch Tech – founded in Kyiv and maintaining a strong Ukrainian presence to this day – withdraw its Russian franchise, whilst the firm has also contributed to humanitarian efforts in its home nation and supports its armed forces.

Other notable firms to have pulled out from Russia include sportstech and data providers Genius Sports and STATSCORE, as well as bet365, LeoVegas, Aspire Global and BETER.

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