Ukraine’s PlayCity Revokes Cosmolot Operator License Amid Financial Violations

Ukraine’s gambling regulator, PlayCity, has revoked the operating license of Spaceiks, the company behind the Cosmolot online casino, following an on-site inspection that uncovered financial irregularities.

According to the regulator, the investigation revealed evidence of abnormal payment activity, including the use of peer-to-peer (P2P) payment services by customers—an arrangement that contravenes Ukrainian law. Additionally, Spaceiks was found to have permitted users to fund their gaming accounts using third-party bank cards, another prohibited practice under the country’s regulatory framework.

As a result of these violations, PlayCity imposed a fine of nearly $300,000 on the operator.

The majority of the penalty—over two-thirds—was attributed to breaches involving P2P transactions, while the remaining portion was issued for infractions related to third-party bank card usage.

This latest enforcement action comes less than a month after PlayCity revoked the license of the betting company Patriot Lottery. Although the regulator had only granted Patriot its operating permit in January, a subsequent “comprehensive check” conducted in collaboration with the Ukrainian State Bureau of Investigation determined that the company was “non-compliant with legislative requirements.”

Spaceiks holds particular significance in Ukraine’s regulated gambling market, as it was the first operator to receive a license under the country’s 2020 Gambling Act. The firm was originally granted a five-year online casino license in early 2021 by PlayCity’s predecessor, the Commission for the Regulation of Gambling and Lotteries. At that time, Spaceiks paid a licensing fee of UAH 39 million, equivalent to over $885,000 today.

Commenting on the decision, PlayCity head Gennady Novikov emphasized the importance of regulatory compliance, stating: “Gambling license [permit holders] must work in accordance with the requirements established by law. Our job is to ensure constant and transparent supervision of licensees. We must ensure the market operates according to uniform rules for all participants.”

The Ukrainian government is also preparing to reinforce regulatory oversight through upcoming legislative changes. Oleksandr Bornyakov, Acting Minister of Digital Transformation, confirmed that his ministry has drafted amendments aimed at tightening control over the gambling sector.

“The amendments will help us develop more effective controls over the Ukrainian betting sector,” he said, adding: “The goal of these amendments is to further strengthen regulation for bettors. We also intend to strengthen the requirements for monitoring gambling operators.”

PlayCity, which has been operational for just over a year, has already taken significant steps to reshape the industry. In December, the regulator announced that it had blocked access to more than 2,500 online casinos. It also reported collecting over $33 million in licensing fees from authorized operators.

Earlier this year, the agency reiterated its commitment to prioritizing national security and public protection while enhancing the “transparency and accountability of gambling sector businesses.”

By fLEXI tEAM