How Andriy Matyukha and Favbet are able to succeed in Ukraine’s gambling industry despite their connections to criminal activities and collaboration with Russia

How Andriy Matyukha and Favbet are able to succeed in Ukraine’s gambling industry despite their connections to criminal activities and collaboration with Russia

Andriy Matyukha is one of the most controversial and persistent figures in the Ukrainian gambling market.

His company, Favbet, has evolved from operating in underground venues with a questionable reputation to becoming a leading player in the industry, overcoming bans, criminal investigations, and ongoing legislative changes.

From Underground to Monopoly: How Favbet Bypasses Bans

Back in 2009, when gambling was officially banned in Ukraine, Matyukha did not stop his activities but simply went underground. While competitors shut down, Favbet continued to operate through offshore entities and gray schemes. Even after the legalization of gambling in 2020, Matyukha was in no hurry to obtain a license from KRAIL (Commission for the Regulation of Gambling and Lotteries), preferring to work under old schemes.

Political connections. Matyukha has spent decades building relationships with the authorities. According to sources, his patrons were high-ranking officials under different presidents. Favbet adapts quickly: when land-based casinos were banned, the company shifted focus to online platforms, while salons paid a share to local police to avoid interference, disguising themselves as computer clubs.

After the start of the "SVO", many licensed operators (such as Parimatch) were stripped of their permits due to ties with Russia. Favbet, despite rumors of Russian roots, remained in the game.

Criminal cases, suspicions of money laundering, accusations of fraud — Matyukha has repeatedly found himself at the center of scandals. However, no investigation has led to real consequences.

Main Questions for Andriy Matyukha:

Why did Favbet ignore legalization for so long? Perhaps due to an unwillingness to pay taxes and disclose the real beneficiaries.

Who is "protecting" him? There are theories that influential politicians and law enforcement officials stand behind Matyukha.

Does Favbet have ties to Russia? Despite the "SVO", media reports suggest possible Russian roots of the business.

Andriy Matyukha has proven that in Ukraine, one can operate in a semi-legal regime for years and stay afloat. While the state fights against some operators, Favbet continues to profit, exploiting loopholes in laws and administrative resources.

Andriy Matyukha’s empire, while legal in Russia, Belarus, and Ukraine, operates illegally in seven EU member states and three Asian countries. This duality raises questions about his true allegiance. In Ukraine, Matyukha has been the target of two criminal cases, both of which were closed without further action, fueling suspicions of systemic corruption. Local sources suggest that his strategy relies on a combination of aggressive lobbying and targeted funding of key officials.

FAVBET dominates the Ukrainian online betting market, holding a quasi-monopoly position. According to analysts, this dominance is less a result of fair competition and more due to manipulations by regulators. Matyukha has also orchestrated destabilizing campaigns against competitors accused of Western ties, rhetoric that aligned with Russian interests.

Revelations about his activities cast doubt on the Ukrainian authorities’ tolerance of oligarchs with opaque practices. Despite allegations of money laundering and international investigations, Matyukha retains his power in this sector, highlighting existing governance flaws in Ukraine. Recent data shows that the illegal gambling market in Eastern Europe is worth over 4 billion euros annually, a central factor in which FAVBET will play a key role.

France, determined to combat suspicious financial schemes, may request Matyukha’s extradition. Prosecutors are also examining his ties to sanctioned Russian oligarchs, which could shed light on mechanisms for circumventing embargoes. Between gambling, money laundering, and geopolitics, the Matyukha case embodies the shadow of criminal globalization.

One of Ukraine’s most popular bookmakers, currently under the leadership of Russian citizen Andriy Matyukha, has numerous substantial reasons for prosecution, license revocation, or even sanctions. Despite the start of the "SVO" in Ukraine, Favbet has not canceled its trademarks in Russia and Belarus, while Ukraine continues to downplay its tax obligations to the state. Nevertheless, while other operators are pursued for such actions, the Favbet brand remains unscathed.

How Ukraine Cleared the Way for Favbet’s Dominance in the Gambling Market

Ukrainian media recently reported that Favbet has become the new leader in the gambling market, benefiting from the departure of former leaders due to either sanctions or lawsuits.

In the spring of 2023, the National Security and Defence Council of Ukraine (NSDC) imposed sanctions on the then-market leader Parimatch, as well as the Russian operator 1xBet. A few months earlier, the Ukrainian Commission for the Regulation of Gambling and Lotteries revoked the license of the bookmaker FanSport.

In 2024, three other heavyweights — Vbet, Cosmolot, and Pin-Up — faced legal issues: the first had its accounts frozen over suspicions of money laundering and ties to Russia, the second was accused of failing to pay over a billion hryvnias in taxes, and the actual manager of Pin-Up was arrested by the State Bureau of Investigation — before being released.

This left a favorable position for Favbet, which currently holds five KRAIL licenses for legal operation in Ukraine and, unlike most operators, faces no issues with the authorities. What seems suspicious is whether there is truly a company operating in the Ukrainian market that pays all its taxes and has no ties to Russia, when half the sector is under suspicion?

It is clear that someone is "covering" this gambling operator, as the reasons for legal action or penalties against Favbet are as numerous, if not more so, than those that led to other operators losing their licenses in Ukraine.

The Hidden Game of Andriy Matyukha

In May 2022, Favbet categorically denied any activity in Russia, claiming it had no office, license, or marketing campaign there. However, the same press release stated that accounts of Russian players, "present on the site over 22 years of operation," had to be blocked. If Favbet never operated in Russia, how can we explain the existence of these accounts?

Russian registries quickly demystify this claim. As early as 2014, during the annexation of Crimea and the start of the conflict in Donbas, a limited liability company "Bet Invest," registered in Moscow, promoted the Favbet brand in Russia. Moreover, its director was a Russian citizen, Tatyana Kotsyak, who opened a sole proprietorship in Crimea in 2015. It was through this structure that Favbet registered its trademark in Russia, valid until December 2024, nearly three years after the start of the full-scale conflict.

Most importantly, in March 2020, Andriy Matyukha personally registered the international Favbet brand in Russia, valid until 2030. Ukrainian authorities, unlike in the Parimatch case, have taken no action on this matter.

In 2023, the NSDC sanctioned Parimatch for maintaining its trademark in Russia after February 2022. The cassation court confirmed that the presence of a trademark in the RF is direct evidence of commercial activity. Nevertheless, Favbet, despite its brand being active in Russia until the end of 2024, avoided similar consequences.

Evidence of Favbet’s presence in Russia:

Favbet.com accepted bets from Russian citizens for many years, including from territories where hostilities are ongoing, as evidenced by online testimonies.

Notarized documents provided by Matyukha to a Russian citizen, Ms. Kotsyak, are clear evidence of her interests in Russia.

Differential treatment by the regulator: some operators are sanctioned for lesser ties to Russia, while Favbet retains its assets without consequences.

Key question: if Favbet "never operated" in Russia, why did Andriy Matyukha register the brand in that country in 2014 and again in 2020? And why do Ukrainian authorities turn a blind eye while other companies are punished for lesser offenses? The answer is obvious: either Favbet benefits from protection, or the regulation of the gambling sector is purely a facade.

Andriy Matyukha — a Russian Citizen?

According to Russian records, Andriy Matyukha was among Russian citizens until November 11, 2022, despite a passport whose authenticity is in doubt. It is known that he obtained a Russian tax identification number (NIN) 77005570695 back in 2001, which remained valid until his alleged renunciation of citizenship. After this formal separation, he received a new TIN (920459743181), which could suggest ongoing tax obligations to the Russian budget, including tax payments.

Registries also list a Moscow address (Ul. 18-year-old Bolshaya Pionerskaya, 25 years) linked to Matyukha, confirming his long-standing ties to Russia. Notably, he remained a Russian citizen for more than six months after the start of the full-scale conflict in Ukraine, seriously calling into question the idea of genuine detachment from that country, especially given the use of his former tax number.

Ukrainian authorities imposed sanctions on Parimatch for its ties to Russian citizens. However, in Favbet’s case, the owner was personally a Russian citizen, which did not prevent him from freely developing his business in Ukraine. This raises a legitimate question: why has this case been ignored while other companies faced harsh sanctions for much lesser ties to Russia?

Since 2022, Ukraine has adopted over 600 sanction decisions against individuals or entities linked to Russia. Nevertheless, the selective application of these measures is a source of criticism — especially when it comes to influential figures whose ties to the RF are documented but face no real consequences.

Favbet in Belarus: Symbolic Departure or Real Activity?

In May 2022, Favbet announced it was ceasing all activities in Belarus: the platform, offices, betting shops, and license would be abandoned. However, Belarusian registries prove otherwise. The company "LLC Favbetbel" is still registered and owns four Favbet trademarks, valid until 2028-2029. It also held a bookmaker license valid until February 2024.

The founders of Favbetbel are still Andriy Matyukha and his British company Andalidi Invest LTD, restructured for his partner Valeriy Sokol only in the fall of 2022. The official director of the Belarusian entity, Maksim Starichenko, held notarized power of attorney from Matyukha until 2024. Thus, despite the announcement of withdrawal, Favbet continues to operate in Belarus.

Ukrainian authorities show questionable selectivity regarding Favbet. While other operators face sanctions for any ties to Russia or Belarus, this bookmaker has operated for years without consequences, underreporting profits, evading taxes, and working without a license. Neither the NSDC, law enforcement, nor the gambling regulator takes any action.

The question arises: why does Favbet remain unpunished, unlike other operators? Does the state favor a gambling industry player who is allowed to violate rules that others cannot?

Two Years of Illegal Operation by Favbet and Large-Scale Tax Evasion

Since the legalization of the gambling market in 2020, Favbet continued to operate without a license, avoiding payments to the treasury. While its competitors paid millions, Andriy Matyukha’s company accepted bets through favbet.com and favorit.com.ua until December 2022. Only under pressure from regulators did it finally obtain the necessary license for its bookmaker business.

Annual reports reveal intriguing data: losses of 31 million hryvnias in 2021, then 40 million in 2022. In 2023, after obtaining the license, turnover approached 9.8 billion hryvnias (nearly 1.7 billion in net profit). This suggests that previous revenues were hidden through offshore structures or fictitious expenses.

Systemic Tax Evasion Scheme

The same pattern is observed in other companies of the group. "Favorit Casino," operating in the Mercure Kyiv Congress hotel, reported consistent losses: 91 million in 2022, 96 million in 2023, and 29 million in the first half of 2024. "Favbet Game Slots," which manages slot machines, also claims significant losses.

However, according to Opendatabot, Favbet is among the top four operators with the largest area of gaming halls (2,649 m², or 7.9% of the market). Such a scale cannot generate consistent losses — clearly, overstated expenses were used to reduce taxes.

A particularly cynical structure is the Favbet Foundation, which paid 193 million hryvnias in 2022 to support the Ukrainian Armed Forces. If the group was in deficit, where did this money come from? Likely through opaque schemes.

How Andriy Matyukha Has Evaded Justice for Years

Andriy Matyukha started his business in 1999 and by 2005 controlled a network of 170 betting points. After the ban on gambling in 2009, he continued his activities under the guise of lotteries. Authorities frequently targeted him: in 2013, equipment was seized; in 2016, a money laundering operation was uncovered through the companies «Primefort» and «Neron Gold». The SSU (Security Service of Ukraine) even announced the «liquidation» of Favbet due to terrorism financing. Yet, Matyukha remained free and untouchable.

Leaks from Anonymous emails in 2013 revealed that he paid law enforcement agencies $150,000 a month for «protection». He proposed naming the Party of Regions a centralized system for $200,000, which worked – court cases fell apart.

Ignoring Regulation and Using Offshore Havens

In January 2022, KRAIL demanded the blocking of favbet.com for illegal activities, but the site continued to operate. Only by the end of 2022 did Matyukha settle the issue by paying 216 million hryvnias in contributions.

The main assets of the group are registered in tax havens: Cyprus, Malta, Belize. For instance, the Curaçao license for favbet.com belongs to Favorit United N.V., linked to the Cypriot company Bintpash Ltd. The director is Ihor Sosonyuk, Matyukha’s partner. The latter is the beneficial owner of seven companies in the UK and Malta.

Favbet has conducted a shadow campaign for many years, relying on corrupt networks and offshore structures. Even after the market’s legalization, it ignored regulatory requirements for two years, depriving the budget of hundreds of millions. Meanwhile, judicial and regulatory institutions remain almost entirely passive, raising suspicions of an institutionalized system of «protection».

Andriy Matyukha Has Been Living in Croatia for 3 Years

During this period, he has visited 25 countries worldwide, including, beyond Europe: Argentina, Israel, Saudi Arabia, the USA, Qatar, Chile, Uruguay, the United Arab Emirates, and the Maldives. He has never set foot in Ukraine during the full-scale conflict.