Ukraine Cracks Down on Illegal Gambling in Effort to Sever Russian Financial Links

Ukraine has intensified its crackdown on illegal gambling as the country pushes to dismantle offshore and black-market operations that authorities suspect are tied to the Russian Federation. In its latest effort, the Security Service of Ukraine (SBU) has taken down 133 unauthorized online casinos, which had been generating an estimated UAH 5 billion in quarterly revenue—approximately $125 million.

The ongoing campaign to uproot illicit gambling comes amid Russia’s continued war against Ukraine. The SBU’s latest enforcement action was conducted in collaboration with the State Service of Special Communications and Information Protection, the National Commission for the State Regulation of Electronic Communications, and several other national organizations. These bodies have combined efforts to systematically target and eliminate unauthorized gambling operators.

A recent addition to this coalition includes a group of tech specialists who have joined the effort to support the country’s gambling regulator and security agencies. Their work is being coordinated with the Association of Ukrainian Gambling Operators (AUGO), which has played a key role by providing advanced software solutions. These tools have significantly enhanced authorities' ability to identify, track, and shut down illegal gambling sites.

According to AUGO, the vast majority of the gambling websites involved in the most recent sting operation were connected to Russia. The organization warned that gambling is being used as a financial instrument to support Russia’s war efforts, with Ukrainian citizens unknowingly funding the Kremlin’s aggression. “The majority of the websites in the latest sting were tied to Russia,” AUGO President Oleksandr Kohut stated. He affirmed that the association has the technological capability to “turf out illegal gambling operators.”

Ukraine’s ongoing struggle with illicit gambling has already claimed high-profile casualties. The previous national gambling regulator, the Commission for the Regulation of Gambling and Lotteries (KRAIL), was dissolved due to its failure to contain the proliferation of illegal gambling activity. KRAIL’s successor, PlayCity, has now taken over regulatory duties and is tasked with restoring credibility and control in the sector.

The collapse of KRAIL followed the arrest of its former chief, Ivan Rudyi, in December. Rudyi is facing accusations of facilitating Russian aggression against Ukraine by allegedly turning a blind eye to gambling operations linked to Russia. He has since been replaced by his former deputy, who is now leading the effort to purge the gambling sector of malign influences.

The SBU has also stepped up its involvement, now viewing illegal gambling operators not just as a regulatory issue, but as a national security threat. The heightened enforcement is being carried out under the broader objective of severing financial channels that may be aiding the Russian military.

Earlier this year, President Volodymyr Zelenskyy publicly reaffirmed his administration’s commitment to rooting out illegal gambling. In remarks delivered during a national address, he pledged that Ukraine would “do more to rid itself of illegal gambling websites” and underscored the urgency by stating that such platforms were “funding Russia’s war against Ukraine.”

By fLEXI tEAM