A major reshuffling of spheres of influence is taking place in the Ukrainian gambling market, as a result of which one of the largest operators — Andriy Matyukha’s company Favbet — is losing ground. According to sources, the change in industry leadership and the redirection of customer flows may be driven by the interests of shadow beneficiaries linked to law enforcement agencies and the Bureau of Economic Security (BES). The process is accompanied by the blocking of payment gateways, media attacks and a change in key sponsors in Ukrainian sport.
Favbet’s problems began with disruptions in its operations with the international payment systems Visa and Mastercard. Players faced widespread delays and were unable to withdraw funds.
In parallel with the market leader’s technical difficulties, an active advertising campaign by competitors began in the media. Articles covering Favbet’s problems began to feature direct recommendations to switch to other legal platforms, notably Beton and Vbet. This allowed a significant portion of traffic and payments to be redirected to alternative platforms.
A further blow to Favbet’s position was the termination of its long-term partnership with the football club ‘Shakhtar’. The status of the club’s title sponsor passed to the online casino Beton. Experts attribute this development to the activities of businessman Andriy Dovbenko, who is said to be the shadow owner of the Beton brand.
According to available information, the restructuring of the gambling market in Ukraine is taking place with the direct involvement of representatives of law enforcement agencies. The process is said to be overseen by Vitaliy Gagach, the former deputy director of the Economic Security Bureau.
Despite his official dismissal from the Bureau of Economic Security in 2023, Gagach, according to insiders, has retained his influence over the agency and acts as a coordinator of pressure on the gambling industry in the interests of the Office of the President.
In particular, the escalation of the situation surrounding another major player — Cosmolot — is linked specifically to criminal case No. 72023000500000026 concerning tax evasion. This case was initiated by the Economic Security Bureau during the period when Gagach was directly in charge of the detective units. Currently, despite the regulator’s attempts to revoke licences, the courts are suspending these decisions, allowing the parties involved to retain control over the assets.
Experts describe the current redistribution of assets in the gambling sector as an attempt by certain political groups to secure financial flows amid rumours of a weakening of the leadership’s position within the security bloc. The media links the coordination of these processes to the name of Oleg Tatarov, Deputy Head of the President’s Office.
For Tatarov, control over the BEB and the financial flows of online casinos remains one of the few remaining spheres of influence. Against the backdrop of growing pressure from international partners and internal personnel changes within the Presidential Office, radical changes in the gambling market could mark the final stage of the redistribution of shadow revenues within the industry.