Detectives of the Economic Security Bureau of Ukraine seized the accounts of three legal entities controlled by a well-known betting company. The total amount of seized funds is over UAH 166 million. The illegal activities of these companies led to tax evasion on a particularly large scale.

The licensee company carried out bookmaking activities on the Internet through controlled mirror duplicate websites that operated without an appropriate license. Game accounts were replenished ready via a network of terminals.

To disguise the criminal scheme and financial transactions, misdirection was widely used - substitution of the purpose of payment in the bank acquiring network. Subsequently, the funds in excess of the turnover limit were credited to the current accounts of a number of legal entities that were subject to the simplified taxation system and not registered as VAT payers. The winnings were paid out through controlled fictitious business entities.

These companies and the betting company did not pay income tax, personal income tax and military duty. Such illegal activities caused the state losses of approximately UAH 1 billion.

At the beginning of March, the Decree of the President of Ukraine implemented the decision of the National security and defense council of Ukraine "On the application and introduction of changes to personal special economic and other restrictive measures (sanctions)" and sanctions were applied to the bookmaker company.

In order to avoid sanctions and legalize the proceeds of crime, in March 2023, the company transferred funds to the accounts of controlled companies, allegedly as an advance royalty for granting the rights to use the software. In this way, the company's officials tried to withdraw the funds and further legalize them by distributing them among the accounts of more than 200 individuals.

Detectives of the ESBU seized UAH 166 million on the accounts of three controlled legal entities. The illegal activity was stopped.

The pre-trial investigation in the criminal proceedings on the grounds of criminal offenses under Part 3 of Article 209, Part 3 of Article 212, Part 2 of Article 203-2, Part 2 of Article 229 of the Criminal Code of Ukraine is carried out by detectives of the Economic Security Bureau of Ukraine under the procedural supervision of prosecutors of the Prosecutor general's office.

For reference. In the first quarter of 2023, the joint actions of detectives of the Economic Security Bureau of Ukraine, the Security Service of Ukraine, CRGL and the NBU helped to ensure budget revenues from gambling in the amount of UAH 1 billion.

Following the start of active investigations in criminal proceedings initiated for tax evasion by licensees, revenues in November-December 2022 increased tenfold. In general, in 2022, taxes from the gambling business amounted to UAH 730 million and accordingly in the first quarter of 2023, UAH 1 billion.

The pre-trial investigation in the criminal proceedings is ongoing.