A Kyiv city court has convicted three men for running an illegal gambling operation disguised as a legitimate business, coupled with a fraudulent crypto investment call centre.
The underground casino was discovered in a multi-storey business centre.
The investigation was conducted by detectives from the Territorial Directorate of the State Bureau of Economic Security (BEB) in Kyiv back in 2024. The accused, a Kyiv resident and two accomplices, were found to have established an unlicensed casino on the ninth floor of a commercial office building.
Additionally, they operated a call centre on the fourth floor, which was used to solicit clients and process payments.
Prosecutors revealed that the call-centre employees contacted potential victims and promoted investments in a supposedly automated cryptocurrency trading system. They falsely claimed it could generate returns of up to 5% daily.
Following money transfers, the fraudsters ceased all communication with the investors.
Legal outcomes
The defendants were charged under part 3 of Article 28 and part 2 of Article 203-2 of the Criminal Code of Ukraine. This was for illegal organisation and running gambling activities as an organised group.
The court imposed fines amounting to UAH799,000 ($18,191) on the alleged organiser, and UAH765,000 on each accomplice. Furthermore, more than $20,000 was confiscated by the state.
The criminal investigation into the fraudulent activities of the call centre has been transferred to the National Police for continued examination. Meanwhile, the Kyiv City Prosecutor’s Office has maintained procedural supervision throughout the legal process.
Cracking down
This verdict sheds light on the ongoing challenges Ukraine faces in combating hidden illegal gambling and complex financial scams. Since the partial legalisation of gambling in 2020, Ukrainian authorities have increased crackdowns on underground casinos. They are often found operating from leased commercial properties.
In addition, Ukraine has honed in on illegal play and advertising through tougher regulations. Ukraine’s Ministries of Digital Transformation and Defence announced in March an automated mechanism that will prevent military personnel from accessing online gambling services. The country has an existing ban on service members accessing online casinos during martial law.
In addition, the country’s gaming regulator, PlayCity introduced a new online complaints system designed to expedite public reporting of illegal gambling advertising.
Kathryn Evans
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.
Original article: https://igamingbusiness.com/legal-compliance/kyiv-convicts-three-secret-casino-in-business-centre/
