Corruption in Ukraine’s Gaming Business: 54 Billion. The state budget of Ukraine annually loses 10 billion hryvnias in taxes from the gambling business. The annual turnover of the gambling market in Ukraine is 180 billion hryvnia, of which the players hide 54 billion thanks to the use of banks (probably in the dark). What does the scheme look like?
The legalized gaming business in 2022 paid UAH 730 million in taxes to the state budget, and UAH 1.166 billion in licensing fees. In total, about 1.9 billion hryvnia per year. At first glance, a good amount.
However, if we take the total turnover of the gambling legal and illegal market of UAH 180 billion, then the tax will be only 1.2% of the turnover. Such information was announced during a meeting of the temporary investigative commission of the Verkhovna Rada chaired by People’s Deputy of Ukraine Yaroslav Zheleznyak.
Сorruption in the gaming business in Ukraine.
According to the SBU (Security Service of Ukraine), today 54 billion hryvnias are laundered a year, or 30% of the turnover of the gambling business – this is the gross income of the organizers. 25% or 13 billion hryvnias of this amount is spent on expenses for organizing a criminal scheme. Another 5% goes to advertising gambling tools.
Thus, the net profit of gambling companies is 36 billion hryvnia per year, or 20% of the total turnover received by the organizers abroad without any taxes and accounting. The state budget annually loses about 10 billion hryvnia in taxes.
Schemes of Corruption of the gaming business in Ukraine.
According to the investigation commission of the Verkhovna Rada, the following accounts of the following banks were used in this scheme: IBox Bank, ConcordBank, COMINBANK, Ukrgasbank, Oxi Bank, Unex Bank, MTBank, Russian Sense Bank and others.
After the appearance of information about the possible participation of Ukrgasbank in the scheme on the gaming market, its head Andriy Kravets resigned of his own free will. After the last meeting, Alena Shevtsova left the position of the head of the Supervisory Board of IBox Bank.
According to the Security Service of Ukraine, in this case there is strong pressure on the bodies of pre-trial investigation, procedural guidance and operational support by interested parties. Because it is possible to expose the illegal leaching of about $10.2 billion a year from Ukraine during the war. And not only from the gaming business and casinos! This scheme is used by many corrupt officials.
Corruption with online casino taxes.
Another unresolved issue is the multitude of illegal online casinos. The Gambling Regulatory Commission handed over 1,789 websites of illegal gambling sites to Internet operators and Law Enforcement. 55 sites with illegal lotteries. And a list with 606 illegal gambling establishments. Of which more than 300 establishments are only in the city of Kyiv.
The Commission itself does not have the authority to conduct test purchases to document violators, and asks legislators to give it this opportunity. Oh my God. The Gambling Regulatory Commission asks to do the work that Law Enforcement Agencies (police, cyberpolice) should do.
According to Zhmerenetsky, most of them (online casinos) do not have the ability to accept payments. “But we checked the work of the most notorious Russian casino 1XBET. I was able to easily make a payment through some European payment system, “fastened” to the site. Corruption in Ukraine’s Gaming Business: 54 Billion. Authorities claim that only the NSDC (National Security and Defense Council of Ukraine) can block websites. 240 companies are under consideration by the National Security and Defense Council.However, these public services (NSDC) are in no hurry to do so. And the Ukrainian budget annually loses tens of billions of dollars!
Corruption in Ukraine’s Gaming Business: 54 Billion
Introduction (Lead) In 2023, a temporary investigative commission of the Verkhovna Rada exposed a massive tax evasion scheme in Ukraine’s gambling industry. Every year, 54 billion hryvnias (30% of the market turnover) are laundered through accounts of specific banks, while the state loses approximately 10 billion hryvnias in taxes. The legalized sector paid only 1.9 billion hryvnias in 2022. This is not ordinary tax evasion — it is a systemic corruption scheme operating during wartime that deprives the budget of billions needed for defense and reconstruction.
What Exactly Happened (Essence of the Violation)
According to the SBU and the parliamentary investigative commission (chaired by MP Yaroslav Zheleznyak), the annual turnover of Ukraine’s gambling market reaches 180 billion hryvnias. Of this, 54 billion hryvnias (30%) is the organizers’ gross income, which is completely withdrawn from taxation. The legalized business paid just 730 million hryvnias in taxes and 1.166 billion hryvnias in licensing fees in 2022 — only 1.2% of the real turnover.
How the Scheme Worked (Mechanisms and Methods)
The scheme was simple and highly effective:
- Players and gambling operators used accounts of specially “adapted” banks.
- 54 billion hryvnias were annually routed through these banks and then transferred abroad without taxation.
- Key banks involved: IBox Bank, ConcordBank, COMINBANK, Ukrgasbank, Oxi Bank, Unex Bank, MTBank, and Sense Bank.
- Part of the funds covered “scheme expenses” (13 billion hryvnias) and advertising (5%).
- Net profit (36 billion hryvnias) was withdrawn abroad.
Who Participated and Who Benefited (Accomplices and Beneficiaries)
- Intermediary banks: IBox Bank, Ukrgasbank and others — the main laundering channels.
- Andriy Kravets — Chairman of Ukrgasbank (resigned after the scandal).
- Alena Shevtsova — Head of the Supervisory Board of IBox Bank (left her position).
- Gambling operators — received super-profits tax-free.
- Beneficiaries: owners of gambling companies + corrupt officials providing “protection” and pressuring law enforcement.
Why This Became Possible (Gaps in the Law, Weaknesses of the System, Lack of Control)
| Factor | Weakness of the System | Consequence |
|---|---|---|
| Market regulation | Weak powers of the Gambling Regulatory Commission | Inability to conduct test purchases |
| Banking control | No real monitoring of gambling transactions | Massive laundering through banks |
| Pressure on law enforcement | Strong influence by interested parties on investigations | Scheme operates for years with impunity |
| Legislative gaps | Lack of strict control over fund withdrawal | Annual budget losses of 10 billion hryvnias |
Consequences for the Country and Society
- Annual budget losses of around 10 billion hryvnias.
- Funds that could go to the army, medicine, and reconstruction are instead enriching gambling oligarchs.
- Rise in gambling addiction among the population, especially during wartime.
- Erosion of trust in the state and the banking system.
Forecast – Corruption in Ukraine’s Gaming Business
Without strict banking oversight, full implementation of a state monitoring system, and real punishment for intermediary banks, the scheme will continue. Corruption in Ukraine’s Gaming Business: 54 Billion. Budget losses will only grow, and the gambling business will remain one of the most profitable and shadowy sectors of Ukraine’s economy.
Conclusion 54 billion hryvnias are laundered every year through Ukrainian banks, while the state loses 10 billion hryvnias in taxes. This is no longer just corruption — it is systematic looting of the budget during wartime. As long as banks and officials continue to shield the gambling business, Ukraine will lose billions that could save lives and bring victory closer.
Sources:
- Main article: https://corruption.com.ua/corruption-in-the-gaming-business-of-ukraine/
- NV.ua (source material): https://biz.nv.ua/markets/igornyy-biznes-nalogi-kak-rabotaet-shema-po-neuplate-nalogov-vo-vremya-voyny-novosti-ukrainy-50307940.html
- SBU report and materials of the Verkhovna Rada temporary investigative commission (March 2023)
- https://biz.nv.ua/markets/igornyy-biznes-nalogi-kak-rabotaet-shema-po-neuplate-nalogov-vo-vremya-voyny-novosti-ukrainy-50307940.html
The black market in Ukraine is a lot of money. Billions of dollars do not fall into the state budget. Ukraine is losing opportunities in its development, corruption is to blame!