Ukrainian authorities detain gambling regulator’s CEO over Russia links
Ivan Rudyi alleged to have failed to revoke the licence of a Russian-owned operator as raids at his workplace and home find large quantities of narcotics
Ukraine’s State Bureau of Investigation (SBI) has detained the head of the country’s gambling regulator over allegations he failed to revoke a Russian-owned operator’s licence.
In a press release from the SBI, the body confirmed it had detained KRAIL chief Ivan Rudyi on suspicion of aiding Russia as well as for the possession of a “large quantity” of cocaine.
The SBI alleged that Rudyi intentionally failed to revoke an unnamed operator’s licence, despite the firm’s beneficial owner being Russian, and whose “representatives assisted the aggressor state”.
Rudyi is said to have failed to take action despite “numerous expert reports” that showed the issue was a threat to national security.
The KRAIL chief was also reportedly informed by a number of Ukrainian state bodies of their suspicions toward the operator, but failed to revoke its licence.
The SBI claimed the online casino in question continues to operate in Russia, with its beneficial owner also funding Russia’s 2022 invasion of Ukraine, which escalated the war that has been ongoing since 2014.
According to a Telegram post from Ukraine’s Office of the Attorney General, law enforcement officers conducted searches at Rudyi’s place of work, home and cars, and in the process seized evidence.
The authorities said “flash drives, draft recordings, other documents, laptops, phones, narcotics and cash” were all taken as part of the raid.
Prosecutors have also remanded five people linked to the offending casino – including the ultimate owner, a director and owners of the trademark and domain – in custody.
They were served with a notice of suspicion for aiding the Russian state in its war efforts against Ukraine.
More than UAH2.6bn (£491.6m) in the accounts linked to the company have been seized by authorities, the SBI confirmed.
The pre-trail investigation remains ongoing.
As part of an update to Ukraine’s gambling regulations, KRAIL is set to be dissolved and replaced with a new agency after MPs backed an amended bill at the start of December.
Speaking to EGR, 4H Agency’s head of CIS desk Dmitry Hotsyn said: “In the long term, none, because on 4 December, the Ukrainian Parliament adopted a law on the liquidation of the KRAL, which should take place by 1 April 2025, and the creation of a new body in its place.
“That is, the regulator itself and, possibly, its leadership should change. The only thing that can be assumed in the context of the arrest is that Ivan Rudyi will not be in the new regulator. However, if the charges are not confirmed, this will not be resolved quickly and will still bring reputational damage.
“As for the short-term perspective, until the liquidation of KRAIL, even without the KRAIL chairman, the quorum in the commission is maintained and it can make any decisions.
“And in light of the upcoming liquidation, we do not think that the absence of the chairman will have any impact on changing the working practices of KRAIL.”