In a noteworthy recent event, Ukraine‘s Bureau of Economic Security (BES) has seized a remarkable sum of UAH 700 million ($18.6 million) from the accounts of one of the biggest gambling businesses in the country, Cosmolot. This action follows accusations directed at the casino for allegedly circumventing tax payments amounting to UAH 1.2 billion ($31.9 million). Cosmolot, however, has rejected all charges and has expressed its preparedness to fight for its rights in legal courts.
The Alleged Implementation of Multiple Concurrent Schemes by the Operator
Reports reveal that police forces have identified a large group of Cosmolot’s workforce as suspected participants in arranging unauthorised online gambling activities. In further investigations, authorities discovered exceeding 30 mirrored websites architectured to resemble the officially licensed site, leading to suspicions of an elaborate tax dodging plot through the misrepresentation of payment records.
Interestingly, a mismatch was revealed between the physical location of the gambling licensee and the location cited in the official documentation. In addition, there were apparent deliberate attempts to hide vital evidence crucial for a comprehensive probe into the suspected tax avoidance. If these accusations hold true, the implicated operator may face severe repercussions extending beyond monetary damages.
This event comes amid stepped-up efforts by Ukrainian authorities to tackle illegal gambling in the nation, to counter unlawful elements potentially exploiting vulnerable citizens amidst the ongoing turmoil. Last year’s record shows KRAIL, the Regulation of Gambling and Lotteries, detecting upwards of 1,900 unlicensed operators targeting Ukrainians, and successfully restricting the majority.
An Appeal from Cosmolot for a Discussion with Authorities
As the preliminary investigation against Cosmolot continues, an amount of UAH 700 million has been confiscated from the operator’s accounts by the authorities. Regardless, the company strongly disputes the charges, dismissing them as groundless. Speaking to Forbes, Cosmolot communicated its intent to contest these decisions through pre-trial processes while pledging to aggressively protect its rights in court.
The company has affirmed that its staff are fully engaged in managing the official cosmolot.ua website under a legitimate license. It claims that certain websites mentioned in the BES report share no affiliation with the company. Despite resembling trademarked elements, these websites purportedly illegally exploited the Cosmolot brand to lure players to unauthorized platforms.
Cosmolot systematically reaches out to hosting providers to block offending sites. A roster of such sites along with related explanations were submitted to the BES but were disregarded.
Cosmolot Statement
Cosmolot has announced its dedication to transparency and indicated that all required documentation has been assembled and is prepared for submission to the relevant law enforcement and regulatory bodies. The ongoing legal stand-off between Cosmolot and the Ukrainian authorities highlights the challenges and complexities of the country’s gambling industry, which is currently undergoing significant transformation.
