As Europe continues to provide substantial financial and military support to Ukraine in its struggle against Russian aggression, the expectation grows that Kyiv must demonstrate a firm commitment to internal reform—particularly in combating corruption and strengthening state finances. Yet recent investigations reveal that Parimatch, a sanctioned online gambling operator with deep-rooted connections to both the occupied territories and the Russian Federation, continues to operate illegally within Ukraine. Evidence points to a sophisticated network of shell companies, payment processors, and complicit officials, enabling large-scale tax evasion and money laundering. As reported by the Trinity Bugle.
While European taxpayers fund Ukraine’s defence and reconstruction, criminal interests—allegedly protected by elements within law enforcement and the judiciary—drain the country’s economy and undermine the rule of law. If Ukraine is to maintain international support and build a sustainable future, it must confront these entrenched networks and ensure that all sectors, including gambling, contribute fairly to the state budget.
Gambling pays disproportionally small taxes
The Ukrainian gambling market is estimated by the National Bank to be worth approximately 180 billion UAH annually. However, due to complex financial schemes, state budget revenues remain negligible, as the majority of funds circulate within the shadow economy. In defiance of sanctions imposed on Parimatch, clone companies and illicit money-laundering structures were established, including routes through Russian financial channels. Available evidence suggests that the sanctioned bookmaker continues to operate successfully.
Parimatch controls a significant share, despite being sanctioned by NSDC
Parimatch is an international betting company originally founded in Kyiv, offering sports betting and gambling services. It operated legally in Ukraine until March 2023, when the National Security and Defence Council (NSDC) imposed a 50-year sanction due to its alleged ties to Russian businesses.
It has recently emerged that Sergey Portnov, who served as the CEO of Parimatch for over a decade, has become the official owner of the company. The Chief Executive Officer (CEO) is the individual responsible for strategic direction and key decision-making within a company. Having moved from executive to owner, little has changed in practice: Sergiy Portnov was the principal architect behind Parimatch’s operations. Meanwhile, the company’s former owner, Kateryna Belorusska—daughter of company founder Eduard Shvindlerman—appears to have acted as a nominal figurehead.
It is therefore reasonable to assume that Sergey Portnov is also the organiser behind Parimatch’s tax evasion schemes, money laundering operations, and ongoing collaboration with Russian networks. Sanctions have evidently failed to dismantle Parimatch’s gambling business in Ukraine, which continues to operate clandestinely and under alternative brand names, including BetOn. Moreover, Portnov is reportedly shielded by significant political and institutional protection.
This claim is reinforced by events on 1 March 2025, when numerous high-ranking officers of the Security Service of Ukraine (SBU), along with prominent business figures from Dnipro—some of whom are linked to criminal networks (notably Petrovskiy)—attended the birthday celebration of Kostiantyn Kolomiiets, described as Portnov’s “personal bodyguard.” Such a gathering suggests far more than casual camaraderie. It points to entrenched connections between Parimatch, law enforcement, and elements of the criminal underworld—connections that merit serious scrutiny and cannot be dismissed as a harmless reunion of old friends.
Here is why Ukraine can’t collect taxes from gambling: sanctioned Parimatch still in control of the market
One of the attendees, Artem Shylo—a former officer of the Security Service of Ukraine (SBU)—allegedly facilitated the operations of the Russian bookmaker 1xBet in Ukraine by leveraging his influence within law enforcement structures, according to investigative outlet Nashi Groshi. Since 2012, Shylo had served in the Department for Combating Cybercrime, which is responsible for addressing illegal online casinos and betting platforms.
At the personal invitation of SBU head Vasyl Maliuk, Shylo was appointed to lead the Department for Counterintelligence Protection and Combating Financial Terrorism, although he was later replaced by Anatolii Loif. Notably, Loif also attended the birthday gathering of Kostiantyn Kolomiiets. It is reported that Maliuk dismissed him following this event. Both Shylo and Loif have been implicated in major corruption scandals and are suspected of providing protection for illegal gambling enterprises linked to the sanctioned bookmaker Parimatch.
Also in attendance was Illia Vitiuk, a brigadier general of the SBU and head of the Department for Counterintelligence Protection of State Interests in the Field of Information Security.
Alongside these high-ranking security officials were individuals believed to have links to organised crime in Dnipro. Among them were the so-called “thief-in-law” Serhii Oleinyk, known by the alias Umka, and lawyer Melnyk, a partner of the controversial businessman and alleged criminal sponsor Oleksandr Petrovskyi, more widely known in the media as “Narik.”
It may reasonably be assumed that Kolomiiets is not merely a “bodyguard,” as he is often described, but in fact serves as a key intermediary between Serhii Portnov, Eduard Shvindlerman (father of Kateryna Belorusska), and other organisers of the illicit gambling enterprise. Although little is publicly known about Kolomiiets, it is evident that his role within the structure is far more significant than it appears.
Thanks to investigative journalism by Ukrainska Pravda, the connections between Sergey Portnov and influential figures within the SBU and the criminal underworld have come to light.
However, the network extends beyond Kolomiiets alone. It involves dozens of companies that continue to operate on behalf of the sanctioned Parimatch in Ukraine. These companies are typically fronted by nominal figures or obscure individuals such as Kolomiiets, while operational control is exercised from a central hub in Cyprus—allegedly under the direct supervision of Sergey Portnov.
Despite the sanctions, Parimatch remains active both in government-controlled areas of Ukraine and in the occupied territories. Mounting evidence suggests possible links between the company and Ukrainian law enforcement officials, as well as Russian-affiliated operatives.
Parimatch after Sanctions: Clone Firms and Criminal Investigations That Lead Nowhere
It has emerged that Sergey Portnov has established an extensive network through which the illegal gambling business continues to operate in Ukraine despite the official ban. This network, as it turns out, is not unknown to law enforcement agencies. However, the criminal proceedings appear to be progressing without vigour or urgency. This may suggest a lack of political will to eradicate illegal online casinos, which may benefit not only their owners but also high-ranking officials within law enforcement bodies.
So what exactly is the criminal case about?
Investigations under criminal case No. 42023000000001384 dated 23 August 2023 and No. 72024142500000046 dated 11 December 2024 concern individuals alleged to have collaborated with occupation authorities in Crimea and to have conducted illicit gambling operations via electronic platforms.
The accusations encompass a broad array of articles from the Ukrainian Criminal Code, including:
- Fraud (Art. 190)
- Illegal gambling activities (Art. 203-2)
- Legalisation (laundering) of criminal proceeds (Art. 209)
- Tax evasion (Art. 212)
- Creation of a criminal organisation (Art. 255)
- Financing of terrorism (Art. 258-5)
- Abuse of power (Art. 364)
- High treason (Art. 111)
What does Serhii Portnov’s gambling network look like after the sanctions?
Alternative brands have been created under which the company continues to operate. Law enforcement agencies have taken particular note of one such brand, Buddy.bet.
An inspection of the website revealed that the platform unlawfully offers online casino services without authorisation from the Commission for the Regulation of Gambling and Lotteries (CRGL). A decision issued by the CRGL on 18 September 2023 formally declared Buddy.bet’s activities illegal. The hosting provider supporting the gambling site was instructed to block access within Ukraine. However, the actual blocking only took place recently—Buddy.bet remained operational for at least six months following that announcement.
Parimatch has further obfuscated its continued operations by using a series of other similarly named websites and mirror sites, many of which remain active and accessible.
Currently, the online casino BetOn is being heavily promoted throughout Ukraine, with no evident response from law enforcement. Yet, investigative outlet Antikor reported back in October 2024 that BetOn—along with Gorilla ua—is one of the Parimatch clone operations. Interestingly, BetOn presents itself as a fully legal platform and has even obtained a licence from the CRGL.
A notable aspect of the network’s persistence is its access to major financial infrastructure. Users can fund their accounts or withdraw winnings via Visa and Mastercard bank cards, Monobank and PrivatBank transfers, electronic payment systems, as well as cryptocurrencies including Bitcoin, Ethereum, and Tether (using Binance Pay).
Monobank’s CEO, Oleh Horokhovskyi, has confirmed that, due to intensified efforts to combat illegal gambling transactions, all cardless transactions to African countries (with the exception of Egypt, South Africa, and Morocco) have been blocked. In addition to Monobank and PrivatBank, the criminal investigations reference other banks, including JSC CB Lviv, JSC Sense Bank, JSC Universal Bank, JSC Ukrgasbank, and JSC OTP Bank.
The authorities allege that a number of payment systems have been tailored to serve sanctioned online casinos. These include SettlePay, 4bill, Payberry, and Sportbank—services which facilitate payments via bank cards, cryptocurrencies (Bitcoin, Tether, Ethereum), and even peer-to-peer (P2P) card transfers.
Despite sanctions and regulatory decisions, Parimatch’s network has proven resilient, continuing to exploit regulatory gaps, financial systems, and online platforms to maintain its presence in Ukraine and beyond.
The Investigation Points to Serhii Portnov’s Direct Involvement in Money-Laundering Structures
The investigation highlights Serhii Portnov’s direct involvement in the establishment of Sportbank and a number of other companies allegedly created to launder proceeds derived from illegal gambling activities. The issuance of bank cards was facilitated through JSC Tascombank, reportedly owned by Serhii Tihipko. Sportbank provided services for the acceptance and transfer of payments to illicit casino websites, notably air2.parimatch.com. Bets were openly accepted until April 2024, after which Sportbank was officially declared closed.
Nevertheless, Portnov and his associates reportedly retain numerous alternative channels for receiving payments. According to investigative findings, one such channel is the online currency exchange EXBASE.IO, along with several other services. Financial operations are also conducted through Fast Pay Point LLC and Sun-Rise Finance LLC. The EXBASE.IO exchange, as well as the payment platforms SettlePay and Touchcard, allegedly facilitate the conversion of virtual assets (such as BTC, USDT, and Litecoin) into Ukrainian hryvnia, which is then transferred to cards issued by Oschadbank JSC, PUMB JSC, and PrivatBank JSC. These funds, according to the investigation, originate from online gambling operations.
The scheme’s architect, according to the case file, is the owner of the SettlePay and 4bill payment systems. While the identity of this individual remains confidential due to the ongoing investigation, it is worth noting that Andrii Savchenko and Ihor Bokii are the officially registered owners of these platforms.
A number of additional companies are also reportedly used to launder proceeds from online gambling, including:
- BayPay LLC (EDRPOU 42585185)
- NSP Financial Company LLC (38976787)
- Guru-Pay LLC (41174594)
- Digital Finance LLC (43241185)
- Zetcard LLC (43008317)
- Network Payments LLC (43379975)
- Proloto LLC (43025662)
- Fast Pay Point LLC (43379949)
- Modern Payment Systems Financial Company LLC (38909619)
- Benefit Systems LLC (36530526), among others.
Furthermore, Parimatch is reportedly continuing its operations in the occupied territories and in the Russian Federation.
The investigation found that, following the occupation of Crimea in 2014, Ukrainian nationals registered Payberry LLC in Sevastopol—a company believed to be within the Parimatch orbit. According to the Russian business register, the company’s founders are listed as Oleh Mozhovyi, Oleh Demakin, and Elmira Bokova.
Notably, according to the analytical platform Opendatabot, Bokova is also the registered owner of two companies in Ukraine: TRP-Invest LLC and City-Pay LLC.
In Crimea, Payberry LLC is reportedly a market leader in online gambling, with an annual turnover nearing RUB 200 million. According to the Russian SPARK database, the aforementioned individuals are also linked to a number of other business entities, indicating a wider network potentially tied to the sanctioned bookmaker.
The Investigation Reveals Illegal Transfers and Financial Schemes Supporting Russian Occupation
According to investigative findings, Payberry LLC and Payberry Global LLC have been used to facilitate the transfer of funds from Ukrainian citizens to the benefit of the occupying authorities in Crimea, as well as to the so-called “Luhansk People’s Republic” (LPR) and “Donetsk People’s Republic” (DPR). These funds have also been used to replenish payment accounts of the Russian joint-stock company MTS Bank.
Services are provided via the Payberry website and through self-service terminals located in the occupied territories of Kherson and Zaporizhzhia regions. These companies are also responsible for top-up services for the mobile operator Lugakom (operating in the “LPR”) and reportedly pay taxes to the de facto authorities in Crimea.
Investigators note that this scheme, which involves both Russian and Ukrainian nationals, enables unlawful financial transactions on occupied territories and within Ukraine itself. It supports illegal gambling operations and money laundering, thereby posing a significant threat to Ukraine’s national interests.
What Is the Current Status of Criminal Proceedings Against Parimatch?
Throughout 2024, court proceedings were held concerning the activities of Parimatch LLC and other entities linked to Serhii Portnov, suspected of involvement in illegal online gambling.
The prosecutor submitted motions to seize assets and freeze bank accounts, citing the need to safeguard the pre-trial investigation. Entities named in the proceedings include Payberry LLC, the mobile bank Sportbank, and several companies allegedly used to launder funds from illegal online casinos—among them the payment systems SettlePay, 4bill, and EXBASE.IO. The court approved the asset seizures.
Attempts were made by representatives of Parimatch LLC and companies within Portnov’s network to challenge and overturn the seizure orders. These appeals were ultimately unsuccessful.
At first glance, it would appear that efforts to dismantle Parimatch’s illegal clones and operations in Ukraine are progressing. However, there is a distinct lack of transparency regarding any further developments in the criminal investigations.
Of note, one court ruling concerning asset seizures includes a striking statement:
Law enforcement officers are not undertaking appropriate monitoring and enforcement measures to combat the unlawful organisation and facilitation of gambling and lotteries, likely due to the receipt of improper benefits from such activities.
Recent criminal court proceedings concerning companies linked to Sergey Portnov have stemmed from a formal complaint submitted by the NGO Non-Stop Ukraine, alleging law enforcement inaction and possible sabotage of the investigation into illegal online casinos. According to civil society activists, despite sanctions imposed by the National Security and Defence Council (NSDC), Parimatch continues to operate within Ukraine, funneling proceeds to the Russian Federation via front companies such as Citycode LLC, Gorillabet LLC, and Kendwit LLC.
These firms reportedly employ “miscoding” tactics to disguise gambling transactions by substituting merchant codes with those used for video games or software. This alleged deception is reportedly carried out in collusion with banks including iBox Bank JSC (which has since been stripped of its licence), MTB Bank PJSC, and Sense Bank JSC.
According to civil society activists, the head of the Commission for the Regulation of Gambling and Lotteries (KRAIL), Ivan Rudyi, was detained on 18 December 2024 specifically for his alleged protection of Parimatch. This indeed occurred; the official grounds for his detention were suspicions of facilitating the activities of Russian online casinos operating in Ukraine. Subsequently, it was announced that KRAIL would be dissolved and replaced with a new regulatory body—PlayCity.
The State Bureau of Investigation (SBI) stated that proceeds from illegal online casinos are allegedly used to finance Russian veterans of the Russo-Ukrainian war. However, the issue is far more complex: these casinos are also absorbing funds from Ukrainian service members. A scandal erupted in 2024, prompting official statements revealing that as many as nine out of ten frontline soldiers may be engaging in gambling.
Pavlo Petryshchenko, a soldier of the 59th Brigade, publicly stated that his comrades, suffering from gambling addiction, were losing substantial sums of money and shifting their focus from combat duties to seeking funds to continue gambling.
Tragically, he was killed in action later in 2024.
According to the NGO Non-Stop Ukraine, certain public officials are believed to be “playing on the side of Parimatch.” Judge Tetyana Ilieva of the Pechersk District Court ruled in favour of firms affiliated with Serhii Portnov (Case No. 757/46117/23-k), lifting the seizure of their assets as early as 2023.
Furthermore, Aliona Shevtsova-Degryk, owner of iBox Bank—allegedly linked to Ihor Kolomoiskyi—reportedly evaded accountability due to corruption within the Bureau of Economic Security (BES) and the Prosecutor’s Office. Most importantly, activists have drawn attention to the continued stagnation of the criminal case against Parimatch and its various clones.
In March 2025, civic activists submitted a formal complaint to the court regarding the inaction of the Desnianskyi District Prosecutor’s Office in Kyiv. Their grievance centred on the office’s failure to enter into the Unified Register of Pre-Trial Investigations (URPTI) details of criminal offences cited in their submission dated 28 February 2025. The complaint outlined alleged illegal activities committed by Parimatch LLC and affiliated individuals who, the complainants claim, established a criminal group engaged in running illegal online casinos, fraud, tax evasion, and corrupt dealings involving law enforcement and government bodies.
On 17 March 2025, the investigative judge of the Desnianskyi District Court of Kyiv rejected the complaint. The court found no grounds to conclude there had been prosecutorial inaction and advised the complainants to pursue the matter through the appeals process.
Are Ukrainian law enforcement agencies siding with Parimatch?
At present, evidence indicates that this sanctioned online casino continues to operate in Ukraine, in occupied territories, and within the Russian Federation. A complex scheme of money laundering is also evident. Moreover, the shadow gambling sector does not pay taxes to the Ukrainian state but appears, in effect, to be contributing to the Russian state budget through Sergey Portnov-affiliated entities.
And there are no tangible results in the criminal proceedings thus far.
The recent attendance of high-ranking officers of the Security Service of Ukraine (SBU) at the birthday celebration of Kolomiiets—nominally a “security guard,” though widely believed to be Serhii Portnov’s liaison in Ukraine—only strengthens suspicions. This lends credence to the belief that the illegal gambling business not only sustains Parimatch’s owners and enriches the Russian treasury, but also feeds corruption among Ukraine’s own law enforcement and public officials.
