Ukraine: five arrested in connection with alleged illegal gambling venues on Odesa

The arrests follow similar operations against unlicensed gambling venues in Kyiv.

Ukraine.- The Bureau of Economic Security (ESBU) has reported the arrest of five people allegedly involved in operating a chain of unlicensed gaming venues in the southern city of Odesa. The ESBU says it seized assets worth 2.4m hryvnias ($65,000) in raids at a series of venues located on the ground floors of residential buildings.

As in previous cases in the capital Kyiv, the ESBU said that the venues would only admit people who were known or had prearranged visits. The items seized include vehicles, over 200 computer systems, monitors and accessories paraphernalia and surveillance cameras.

Earlier this month, raids were conducted on alleged illegal casinos in Kyiv that police said were offering electronic casino gambling, including slots and roulette, without the necessary licences or permits. Officers confiscated computer monitors, televisions, mobile phones and other equipment during searches in several districts worth an estimated UAH4m (€100,000).

The operation involved the Territorial Department of the Security Intelligence Service and the national police force. Police were said to be drawing up a list of the suspects involved and conducting a pre-trial investigation under Part 1 of Art. 203-2 of the Criminal Code, which pertains to the illegal organisation of gambling and lotteries. The Kyiv City Prosecutors Office is guiding the investigation.

Ukraine’s current gambling legislation, introduced in 2020, allows slot machines only in three to five-star hotels and casinos only in four to five-star hotels. In the first half of 2023, the ESBU estimated activities from underground gambling houses cost the state budget over UAH30m in lost revenue

Earlier this month, the Ukrainian parliament reintroduced an 18 per cent tax on the turnover of online casino operators. The government expects the move to generate at least UAH 1.5bn ($41m) a year in fiscal revenue.

In other developments, new anti-money laundering and counter-terrorist financing (AML/CTF) legislation has come into effect in Ukraine, including new rules for inspections of gambling operators. Operators can be subject to both planned and unplanned inspections by KRAIL.