Another Online Casino Operator’s License Revoked by Ukrainian Gambling Regulator

(AsiaGameHub) –   PlayCity, Ukraine’s gambling regulatory body, has canceled the operating license held by Spaceiks, the entity running the Cosmolot online casino platform.

According to the regulator, it conducted an on-site audit which uncovered inconsistencies in the operator’s financial processing activities.

In a public statement, PlayCity noted that the audit uncovered proof of anomalous payment activities. The operator is alleged to have permitted its customers to utilize peer-to-peer payment platforms.

Spaceiks is also alleged to have let users add funds to their gaming accounts using bank cards belonging to third parties. Both of these practices are in breach of Ukrainian legal provisions.

The regulatory body also imposed a penalty of nearly $300,000 on Spaceiks.

More than two thirds of that fine sum relates to breaches linked to peer-to-peer payments, while the remaining portion is tied to violations involving third-party bank card usage.

Ukrainian Gambling Regulator Conducting Wide-Ranging Compliance Audits

This announcement follows less than four weeks after PlayCity canceled the operating authorization for betting company Patriot Lottery.

PlayCity had issued an operating permit to Patriot in January of the current year. However, following what officials described as a “full review” of the company and its associated parties, the Ukrainian State Bureau of Investigation alongside the regulator concluded that Patriot failed to meet legal compliance standards.

For context, Spaceiks was the very first gambling company to receive an operating license under the provisions of Ukraine’s 2020 Gambling Act.

PlayCity’s preceding regulatory body, the Commission for the Regulation of Gambling and Lotteries, awarded the company a five-year online casino operating license at the start of 2021.

At that time, Spaceiks paid a license fee of 39 million Ukrainian hryvnia, which is valued at more than $885,000 at current exchange rates.

“Holders of gambling licenses and permits are required to operate in line with all legally mandated requirements,” stated Gennady Novikov, PlayCity’s chief executive. “Our remit is to deliver consistent, transparent oversight of all licensed entities. We have to make sure the market functions under the same set of rules for every participant.”

New Regulatory Changes Set to Be Introduced

The Ukrainian government is set to support the regulator by rolling out a series of as-yet-unannounced adjustments to existing legislation.

Oleksandr Bornyakov, the acting head of the Ministry of Digital Transformation, confirmed that his department has prepared draft changes to Ukraine’s gambling legislation.

“These proposed changes […] will allow us to implement more robust oversight mechanisms for the Ukrainian betting industry,” Bornyakov noted.

Bornyakov further stated: “The core aim of these amendments is to tighten regulatory protections for bettors. We also plan to raise the standards required for the monitoring of gambling operator activities.”

Back in December of last year, PlayCity reported that it had blocked access to more than 2,500 online casino sites.

The regulatory body, which was established just a little more than 12 months ago, also noted that it had collected more than $33 million in license fees from gambling operators holding valid permits.

Earlier in the current year, PlayCity announced that it would prioritize state and public safety, as well as improve the “transparency and accountability of all businesses operating in the gambling sector.”