The Third Administrative Court of Appeal in Dnipro rejected an appeal by the State Agency of Ukraine «PlayCity» on August 20, 2026, upholding the lower court’s ruling from June 2. This decision temporarily suspends the revocation of licenses for «FAVORIT CASINO COMPANY» LLC and «FAVBET VIP CASINO» LLC, allowing the gambling operators to continue their business legally until the case is fully resolved on its merits.
The dispute between the regulator and the operators began on May 29, when «PlayCity» decided to terminate the licenses of companies operating under the FAVBET CASINO / FAVBET POKER and BILLIONAIRE brands. The decision followed an unscheduled off-site audit prompted by a State Bureau of Investigation (SBI) notice within a criminal proceeding. The regulator cited potential risks of control over the companies or their beneficial owners by residents of the aggressor state.
The companies contested the decision in court, submitting official documents regarding the citizenship of their ultimate beneficial owner. The regulator sought to overturn the injunction in the appellate court, arguing that the court order effectively blocked its statutory enforcement powers.
The panel of judges rejected the arguments of «PlayCity» and affirmed the necessity of the injunction. The court noted that an immediate license suspension would completely block the companies’ core operations, leading to severe consequences, including the potential dismissal of over 500 employees. The court also took into account the companies’ tax compliance, noting payments of over UAH 115.4 million and UAH 43.9 million to the state budget, respectively.
«The injunction aims to maintain a balance of interests between the parties until the dispute is resolved on its merits. Revoking the licenses prior to a final ruling would result in irreversible consequences for the business entities,» the court ruling noted.
At the same time, the court emphasized that it has not yet evaluated the validity of the license revocation itself or the conclusions of the SBI. The core merits of the dispute and the legality of the regulator’s actions will be examined during the main proceedings in case No. 160/15429/26. Until a final judgment takes legal effect, both operators will continue operating as usual.