Ukrainian regulator KRAIL blocks 72% of unlicensed sites
Almost three-quarters of unlicensed operators block access to their sites after action taken by regulator
The Ukrainian gambling regulator, KRAIL, has reported 72% of unlicensed sites in Ukraine have blocked access to respective sites since being contacted by the body.
The regulator said this action covered the period from 25 January 2022 to 8 August 2023, but it did not disclose how many sites it had contacted during this time or name any of the sites concerned.
All sites contacted by KRAIL were given three days to withdraw operations from Ukraine, as per Ukrainian gambling law.
Speaking to EGR, 4H Agency senior consultant Dmitry Hotsyn discussed the regulator’s crackdown on unlicensed operators.
Hotsyn said: “This action, a continuation of KRAIL’s commitment that began in 2022, underscores the regulator’s resolve to tackle the illegal market. It can also be seen as KRAIL’s concerted effort to dispel any doubts and silence rumours about its ability to enforce regulations.
“Yet, the increasing number of blocked sites casts a shadow over the real impact on illegal activities. Ukraine’s market, with its substantial size, attractive payment options and a receptive population keen on gambling-related entertainment, naturally draws attention. Merely blocking illegal sites may not be enough to stamp out unlicensed operators.
“While KRAIL’s blocking actions may be met with scepticism, they should not be overlooked by market stakeholders.
“For international companies eyeing the Ukrainian markets, extreme caution is warranted. Involvement with unlicensed websites could result in being placed on Ukrainian sanction lists. The recent devastating sanctions faced by Parimatch, Ukraine’s largest gambling operator, illustrate how impactful may these sanctions be.
“In conclusion, balancing the changing regulations in Ukraine and the market’s natural appeal require careful attention. It may be that rare case where overcompliance will pay.”
The clamp down follows the news last week that Parimatch has had its Ukrainian licence revoked by KRAIL, in accordance with the sanctions handed to the operator in March by President Volodyr Zelenskyy.
KRAIL confirmed on 8 August that it had revoked both Parimatch’s licence and that of sister company, PokerMatch.
The regulator said that following an authorised meeting of its members, it moved to ensure the implementation of Zelenskyy’s sanctions.
Zelenksyy sanctioned 120 individuals and 287 entities related to gambling over alleged connections with Russia. At the time of writing, Parimatch has continually denied these connections.
The revoking of Parimatch’s licence came a month after it was reported that Zelenskyy had officially ordered a review of the sanctions due to a petition which had received over 25,000 signatures.