The Shevchenkivskyi District Court of Dnipro is hearing a civil case filed by entrepreneur Denys Podolyan against the state lottery operator «Patriot» PJSC, where Andriy Matyukha is listed as the ultimate beneficiary. Amid sweeping regulatory checks and court proceedings, Ukraine’s gambling market faces a severe crisis impacting its largest stakeholders.
The lawsuit filed by Podolyan, a combat veteran, formally concerns consumer rights protection but seeks to force the disclosure of the lottery operator’s true ownership structure. Underlying the dispute are concerns regarding Matyukha’s potential tax residency and the status of assets in Crimea. Defense representatives have moved to dismiss the case. Meanwhile, «Patriot» PJSC entered official liquidation proceedings in spring 2026, shortly after a brief license reinstatement.
Questions regarding the beneficiary’s citizenship have lingered for months. Company representatives have consistently denied allegations of Matyukha holding a Russian passport, maintaining his Ukrainian citizenship and submitting affidavits to support the claim.
The turmoil extends directly to the group’s sports betting assets. In January 2026, Favbet voluntarily requested the cancellation of its bookmaking license, after which the regulatory authority imposed over 9 million UAH in financial sanctions for violations including delayed payouts and uncertified B2B software.
A subsequent April inspection of the «Favbet Game Slots» network revealed over 100 gaming machines operating without required inspection certificates. This resulted in the revocation of slot hall licenses and a fine exceeding 933 million UAH. While a court temporarily stayed the license revocation pending appeal, it refused to suspend the financial penalty.
Legal challenges further escalated following a criminal investigation launched in August 2025 into alleged financial crimes, including tax evasion and money laundering.
In November 2025, Kyiv’s Pechersk District Court granted a motion to freeze non-cash funds in accounts belonging to Favbet, «Casino.UA,» and associated individuals, transferring the assets to the Asset Recovery and Management Agency (ARMA). Despite these measures, the corporate entities continue their legal defense: the Supreme Court recently upheld the annulment of a 2.135 billion UAH tax assessment regarding cash register compliance, marking a rare legal victory amidst broader enforcement actions.