PlayCity, the Ukrainian gaming regulator, has canceled two of the country’s biggest betting operators’ licenses, claiming they have connections to Russia.
The regulator said both companies, Favorit Casino and Favbet VIP Casino, had “direct or indirect” links to Russia through their “ultimate owners.”
In a Telegram post, PlayCity said its investigations had “revealed connections between the companies” and “the aggressor state,” namely Russia.
“Accordingly, the brands Favbet Casino, Favbet Poker, and Billionaire have lost the right to operate in the Ukrainian market,” PlayCity said. “The gambling market must operate transparently, legally, and without connections with the aggressor state.”
Ukrainian Gaming Regulator: Our New System Works Well
The regulator did not provide any other details regarding the companies’ links to Russia.
FavBet has been operating in Ukraine since the late 1990s, branching out into Romania, Croatia, and Belarus.
It first obtained an online gaming license under the Gambling and Lotteries Regulatory Commission, PlayCity’s predecessor, in 2021.
It suspended its Belarusian operations after the outbreak of war in 2022.
PlayCity launched last year, a month after the government placed the Ministry of Digital Development, Communications, and Mass Media in charge of formulating and coordinating state gambling policy.
In early October 2025, PlayCity launched a new licensing system, collecting UAH 175.2 million (about $4 million) in permit fees from operators.
In a separate development, the regulator has also announced that, since its launch, it has shut down over 4,100 gambling sites and their mirrors.
PlayCity has also ordered the suspension of over 700 social media accounts, forums, and online communities, said the regulator in another Telegram post.
The regulator said the account holders “distributed prohibited [gambling] advertisements and attempted to circumvent government oversight” measures.
It has also fined casino operators and their affiliates approximately UAH 80 million (over $1.8 million) for violating gambling advertising laws.
Casino Tax Revenue Boost
“We have begun to systematically change our approach to regulating the gambling and lottery market,” PlayCity said. “[We have put] a focus on digital control, transparent rules, the fight against the illegal gambling sector, and player protection.”
The agency said it has issued 250 operating licenses since last year.
“For the first time in over 12 years, the state is now licensing lottery operators and introduced mandatory reporting requirements,” PlayCity added.
The regulator said it has bolstered tax revenues. “Transparent business practices” have seen it raise UAH 14 billion ($316 million) in tax revenue to date, PlayCity concluded.
In April, the regulator said it would revoke the permit of the Cosmolot online casino operator Spaceiks.
A Kyiv court has since overturned this ruling, granting Spaceiks a temporary permit while the parties settle their dispute.
