Head of Ukraine's gambling regulator detained over alleged support of Russian-owned online casinos

Ivan Rudyi, Head of Ukraine's Commission for the Regulation of Gambling and Lotteries, has been detained on charges of supporting the operations of Russian-owned online casinos in Ukraine, the State Bureau of Investigation (SBI) of Ukraine confirmed.

"SBI officers detained the head of the Commission on suspicion of aiding the aggressor state and the illegal possession of large quantities of narcotics without intent to sell (Articles 111-2 and 309 of Ukraine's Criminal Code)," the SBI stated.

The Commission, under the lead of the detained official, intentionally refrained from revoking the licenses of an online gambling business whose ultimate owners are Russian citizens, according to the Bureau's investigation.

"Despite numerous expert findings indicating that the activities of the online casino posed a threat to national security, no decision was made to revoke its license," the SBI statement added, noting that personal data of Ukrainian military personnel who were clients of the casino could have easily fallen into Russian hands.

The investigation also uncovered that an individual directly overseeing the casino's operations funded veterans of Russia's so-called "Special Military Operation" following the full-scale invasion. The casino in question continues to operate on Russian territory and through Russian web platforms, reports Ukrainian media Interfax.

The court has ordered pretrial detention for the beneficial owners of the online casino, its director, and the owner of the brand and domain name. They have been charged under Article 111-2 of Ukraine's Criminal Code.

The SBI, in collaboration with other authorized agencies, is taking steps to transfer the seized funds, managed by the Asset Recovery and Management Agency (ARMA), to the state treasury under applicable legislation.

The SBI also noted that the court had granted a motion by the SBI and the Prosecutor General's Office to transfer over UAH 2.6 billion ($61.9 million) from the online casino's accounts linked to representatives of Russia to ARMA. The figure is the total sum of seized assets, including profitable financial transactions.

In early December, the Ukrainian Parliament passed a law under which the Commission for Regulation of Gambling and Lotteries is to be disbanded by 1 April 2025.