Has Ukraine Been Supporting Russian Online Casinos?

_{Ukraine's gambling chief is detained for allegedly supporting Russian operators. (Image: Raj Valley / Alamy)}

On December 18, 2024, the head of the Ukrainian Gambling and Lottery Regulation Commission, Ivan Rudyi, was detained by the State Bureau of Investigation (SBI) amid allegations of supporting the operations of a Russian online casino.  

According to law enforcement sources reported by Ukrinform, Rudyi's role in allegedly backing Russian gambling operations has raised significant concerns regarding the integrity of Ukraine's gambling regulatory environment, particularly in light of ongoing efforts to counteract the influence of Russian capital within Ukraine's financial sectors. 

In a recent interview with Anton Kuchukhidze, Chairman of the Ukrainian Gambling Council, we heard about Ukraine needing to bolster its regulatory framework to combat the influence of Russian operators. 

Although Anton did not name anyone specifically, he hinted at corruption within the industry and warned of potential opportunities for people to profit from Russian operators behind masks in other countries.

Just weeks prior, on December 5, the SBI filed charges against owners and senior managers of the Pin-Up online casino.

Charges highlighted connections between the operation and Russian government representatives as well as companies facing sanctions in Ukraine.

Pin-up Casino is an online casino with a Curacao licence. Established in 2016, it’s home to some of the industry’s top providers, including NetEnt, Microgaming, Play’n GO, and others. 

Legislative Context and Challenges Ahead 

Earlier this month, the Ukrainian parliament, the Verkhovna Rada, passed a law to disband the gambling regulator by April 1, 2025, further complicating the landscape for legitimate gambling operations. 

Ivan Rudyi has served as the head of the Commission since October 28, 2020, navigating an industry beleaguered by the challenges of corruption, public scepticism, and illicit competition. 

Voices from Ukraine and Academic Perspectives 

In the interview with Casinos.com, Anton Kuchukhidze painted a bleak picture: “The situation is dire, as many Russians operate through offshoring tactics in jurisdictions like Cyprus.

"Despite strong EU regulations against money laundering and financial terrorism, there seems to be a loophole allowing these companies to operate and sponsor events in Europe. I believe that European governments must strengthen their oversight to effectively counteract these schemes.”   

In our interview, Anton pointed out that while legalising gambling in Ukraine was a significant stride forward, the continuing existence of a substantial illegal market, often with Russian ties, remains a critical challenge.  

The implications of Russian involvement extend beyond mere financial mechanics; it raises profound ethical questions regarding the integrity of Ukraine's burgeoning gambling industry.  

Dr. Jamie Torrance, a scholarly voice from Swansea University, offered a nuanced view of the potential risks and regulatory strategies moving forward. He asserted that while the black market remains a concern, a well-regulated environment can attract consumers to legal platforms. 

The path forward for Ukraine’s gambling industry necessitates a comprehensive strategy to mitigate the risks posed by illegal operations, particularly those associated with Russian entities. This includes a thoughtful approach to regulatory reform, informed by global best practices, while also being adaptable to local realities.