12 Arrested in Online Gambling Scheme That Trafficked Ukrainian Women

Europol has announced the arrest of 12 members of a criminal group that allegedly trafficked Ukrainian women to Spain to open bank and online gambling accounts. Authorities estimate that the organization made a profit of over $2 million using computer systems to automate large-scale betting activities.

In a statement released on Thursday, Europol said there were a total of 55 victims who were used in the scheme. According to Spanish investigators, the victims were in extremely vulnerable situations in areas heavily impacted by the war in Ukraine and were completely under the control of the suspects. 

The criminal group, comprised of Ukrainians, first sent the women to Spain, accompanied them to open bank accounts, and returned them to Ukraine shortly afterwards.

Criminal Group Stole Credit Cards & Identities

In addition to using the women, the group also opened betting accounts using stolen identities. So far, more than 3,000 stolen credit cards and over 5,000 stolen identities from 17 nationalities have been detected.

Raids on houses in Alicante and Valencia, Spain, as well as in Ukraine, saw authorities seize €200,000 ($231,000) in cryptocurrency and over $80,000 in cash. Police also seized 22 bots used to place bets.

Authorities did not reveal how the bots were able to profit from wagers, but said that analysis of the gambling accounts showed deposits of €2.7 million ($3.12 million) and withdrawals totaling €4.7 million ($5.5 million).

The criminal group also used the women to obtain government subsidies due to their refugee status. Part of the funds were then invested in luxury real estate.

Ukraine & Spain Clamping Down on Illegal Gambling

Ukraine and Spain have been active in clamping down on illegal gambling in their countries.

The Ukrainian government launched a new gambling regulator, PlayCity, last year. In its first six months, the agency blocked access to more than 2,500 online casinos. It also collected over UAH 1.4 billion ($33.2 million) in license fees from permit-holding gambling operators.

As part of its measures to combat illegal gambling, it has been issuing penalties both to illegal operators and social media influencers. Last year, the agency fined bloggers and media outlets over UAH 52 million (over $1.2 million) for “illegally advertising” gambling platforms.

Meanwhile, Spain’s gambling regulator has issued some of the heftiest penalties in the world to gambling companies. Last year, the Directorate General for Gambling Regulation (DGOJ) dished out a total of €111 million ($128 million) in fines.

Companies that have been issued penalties include both licensed and unlicensed operators. Since an amendment to the Gambling Regulation Act in July 2021, it has fined operators over $500 million.