Parimatch has Ukraine licence revoked in latest twist

Parimatch has had its licence revoked by the Ukrainian gambling regulator, KRAIL, in accordance with President Volodymyr Zelenskyy’s sanctions handed down in March.

KRAIL confirmed yesterday evening, 8 August, that it had revoked Parimatch’s licence as well as that of sister company PokerMatch.

KRAIL also confirmed the revocation of PointLoto’s licence.

The regulator said that following an authorised meeting of its members, it moved to ensure the implementation of Zelenskyy’s sanctions.

In March, the President moved to sanction 120 individuals and 287 entities connected to gambling over purported connections to Russia.

Parimatch vehemently denies the claims.

The cancelling of the licence comes less than a month after it was reported that Zelenskyy had officially ordered a review of the sanctions.

The review came after a petition received 25,000 signatures calling for the government to renege on its policy.

Following the handing down of the sanctions in March, Parimatch shuttered its Ukrainian operations, leaving staff unpaid and a freeze on customer accounts.

Parimatch has yet to release a statement regarding KRAIL’s decision.

Speaking to EGR, 4H Agency senior consultant Dmitry Hotsyn delved into the complexity of the case.

Hotsyn said: “The Presidential Decree to impose sanctions, effective from 10 March 2023, represents one of numerous of links in a chain of decisions targeting individuals and businesses with alleged connections to Russia.

“These factors make sanctions a nuanced and delicate issue, especially for the targeted companies, such as Parimatch, the first and largest Ukrainian betting operator. The sanction decree has significantly impacted their business, illustrating the tangible effects of these legal and political decisions within the global business landscape.

“Though tectonic in its nature, KRAIL’s decision logically follows March’s Presidential Decree to impose sanctions on businesses allegedly connected to Russia. Criticised by various stakeholders for its enforcement practices, KRAIL’s move can be interpreted as an effort to quash rumour’s about the regulator’s institutional weaknesses.

“For international players eyeing the Ukrainian market, KRAIL’s decision sends mixed messages. Of the six betting licences issued, three have already been revoked. The implications of this decision could be far-reaching for the industry. For Parimatch, however, not much is likely to change.

“The company wound down active operations shortly after being hit by the sanctions in March 2023, with almost all business suspended by the beginning of May. Still, the revocation of the licence will likely take its long-term toll.

“Parimatch appears to have chosen the path of legal battles to overturn the sanctions. Now, even if they were to win in court—an unlikely scenario—they might still need to engage in another fight with the regulator.”