The Supreme Court of Ukraine has ruled in favor of the gambling operator Favbet, overturning a 2.1 billion UAH tax penalty previously imposed by the State Tax Service. Tax authorities had accused the gambling business, which media reports link to Russian citizen Matyukha, of conducting financial transactions with players without using mandatory cash registers (RRO).
According to court records, the State Tax Service of Ukraine issued the multi-billion fine following an audit of the company’s operations. Tax inspectors alleged that the online casino Favbet processed transactions totaling approximately 1.4 billion UAH without utilizing proper cash registers or issuing mandatory fiscal receipts to users.
Representatives of the gambling brand disputed the findings and took legal action to challenge the tax assessment. After progressing through several lower courts, the case reached the Supreme Court, which issued a final ruling in favor of the business, completely nullifying the state’s financial claims.
The cancellation of massive fines for gambling operators has increasingly become a broader trend within the Ukrainian legal system. The Favbet ruling is the second high-profile precedent this year where courts have sided with the gambling industry in major tax disputes.
«This is not an isolated incident. In February, the Court of Appeals also overturned a 20 billion UAH fine imposed by the tax authority on Pin-Up, a sanctioned online casino linked to Punin.»
These recent judicial rulings coincide with an ongoing national debate regarding tighter state control over the gambling sector. Currently, KRAIL (the Gambling and Lotteries Regulation Commission) along with law enforcement agencies continue to monitor operator compliance, particularly concerning potential ties to the Russian Federation. However, the Supreme Court’s decision remains final and legally binding for the tax authorities, setting a powerful precedent for the entire online casino market in Ukraine.