Favbet’s shadowy schemes: how Russian passport holder Andrey Matyukha uses offshore networks and criminal ties to circumvent Ukrainian laws and dominate the betting market

Favbet’s shadowy schemes: how Russian passport holder Andrey Matyukha uses offshore networks and criminal ties to circumvent Ukrainian laws and dominate the betting market

Andrey Matyukha is one of the most controversial and long-standing figures in Ukraine’s gambling sector.

His firm, Favbet, transformed from operating shady underground locations to emerging as a top contender in the sector, despite facing bans, legal probes, and ongoing regulatory shifts.

From Underground to Monopoly: How Favbet Bypasses Bans

Back in 2009, when gambling was officially banned in Ukraine, Matyukha did not stop operations but simply went underground. While competitors were shutting down, Favbet continued operating through offshore companies and gray schemes. Even after the legalization of gambling in 2020, Matyukha was slow to obtain a license from the Commission for the Regulation of Gambling and Lotteries (KRAIL), preferring to operate under old schemes.

Political Connections

Matyukha has built relationships with authorities for decades. According to sources, his patrons included high-ranking officials under different presidents. Favbet quickly adapts: when land-based casinos were banned, the company focused on online venues, while salons paid local police to avoid interference, disguising themselves as computer clubs.

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After the start of the Special Military Operation (SMO), many licensed operators (such as Parimatch) lost their permits due to connections with Russia. Despite rumors about Russian roots, Favbet remained active.

Criminal cases, suspicions of money laundering, and fraud accusations — Matyukha has repeatedly been at the center of scandals. However, none of these investigations have led to real consequences.

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Key Questions About Andrey Matyukha:

Why did Favbet ignore legalization for so long? Possibly to avoid taxes and revealing real beneficiaries.

Who protects him? There are theories that influential politicians and law enforcement officers stand behind Matyukha.

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

Andrey Matyukha has proven that in Ukraine one can operate semi-legally for years and stay afloat. While the government cracks down on some operators, Favbet continues to earn, exploiting legal loopholes and administrative resources.

Though legal in Russia, Belarus, and Ukraine, Matyukha’s empire operates illegally in seven EU countries and three Asian countries. This duality raises questions about his true allegiance. In Ukraine, Matyukha was targeted by two criminal cases, both closed without further action, fueling suspicions of systemic corruption. Local sources suggest his strategy relies on aggressive lobbying and targeted financing of key officials.

Favbet dominates the Ukrainian online betting market with a quasi-monopoly position. Analysts believe this dominance is less about fair competition and more about manipulation by regulators. Matyukha also orchestrated destabilizing campaigns against competitors accused of Western ties and rhetoric aligned with Russian interests.

Revelations about his activities call into question the tolerance of Ukrainian authorities toward oligarchs with opaque practices. Despite allegations of money laundering and international investigations, Matyukha retains his power in the sector, indicating persistent governance shortcomings in Ukraine. Recent data shows the illegal gambling market in Eastern Europe is worth over 4 billion euros annually, where Favbet plays a central role.

France, determined to combat suspicious financial schemes, may request Matyukha’s extradition. Prosecutors are examining his ties to Russian oligarchs under sanctions, potentially shedding light on embargo evasion mechanisms. This case exemplifies the shadow of criminal globalization between gambling, money laundering, and geopolitics.

One of Ukraine’s most popular bookmakers, headed by Russian citizen Andrey Matyukha, faces strong grounds for prosecution, license revocation, or sanctions. Despite the SMO, Favbet has not canceled trademarks in Russia and Belarus, while Ukraine continues to downplay its tax obligations. Meanwhile, other operators targeted for similar actions have faced consequences, yet Favbet’s brand remains untouched.

How Ukraine Cleared the Way for Favbet’s Market Domination

Ukrainian media recently reported Favbet became the new market leader, capitalizing on former leaders exiting due to sanctions or lawsuits.

In spring 2023, Ukraine’s National Security and Defense Council (NSDC) sanctioned market leader Parimatch and Russian operator 1xBet. Months earlier, Ukraine’s Gambling Regulation Commission revoked the license of bookmaker FanSport.

In 2024, three other major players — Vbet, Cosmolot, and Pin-Up — faced legal troubles: Vbet’s accounts were frozen over money laundering and Russian ties suspicions; Pin-Up was accused of unpaid taxes exceeding a billion hryvnias, and its actual manager was arrested by the State Bureau of Investigations — later released.

This left an opening for Favbet, which currently holds five KRAIL licenses for legal operation in Ukraine and, unlike most operators, faces no problems with authorities. Suspiciously, the company seemingly pays all taxes and has no Russian ties, while half the sector is under suspicion.

It is clear that someone “covers” this gambling operator because the grounds for legal action against Favbet are as numerous or more than those that led others to lose their Ukrainian licenses.

The Hidden Game of Andrey Matyukha

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In May 2022, Favbet denied any operations in Russia, claiming no offices, licenses, or marketing campaigns there. Yet they stated Russian player accounts, “existing on the site for 22 years,” had to be blocked. If Favbet never operated in Russia, how do these accounts exist?

Russian registries quickly debunked this claim. In 2014, during Crimea’s annexation and Donbas conflict onset, LLC “Bet Invest” in Moscow promoted the Favbet brand in Russia. Its director was Russian citizen Tatyana Kotsyak, who opened a sole proprietorship in Crimea in 2015. Favbet registered its trademark in Russia through this structure/

Most importantly, in March 2020, Andrey Matyukha personally registered the international Favbet brand in Russia, valid until 2030. Unlike the Parimatch case, Ukrainian authorities took no action here.

In 2023, the NSDC sanctioned Parimatch for retaining its Russian trademark post-February 2022. The cassation court confirmed trademark possession as direct proof of commercial activity. Yet Favbet, whose brand was active in Russia until the end of 2024, escaped similar consequences.

Favbet.com accepted bets from Russian citizens for years, including from conflict zones, as online evidence shows.

Notarized authority granted by Matyukha to Russian citizen Tatyana Kotsyak clearly indicates Russian interests.

Regulatory double standards: some operators face sanctions for lesser Russian ties, while Favbet’s assets remain unaffected.

Key question: If Favbet “never operated” in Russia, why did Matyukha register the brand there in 2014 and again in 2020? And why do Ukrainian authorities look the other way, while other companies face penalties for smaller infractions? The answer is clear: Favbet either enjoys protection or the gambling sector’s regulation is purely a facade.

Is Andrey Matyukha a Russian Citizen?

Russian records show Andrey Valeriyovych Matyukha was a Russian citizen until November 11, 2022, despite the questionable authenticity of his passport. He had a Russian Taxpayer Identification Number (TIN) 77005570695 since 2001, valid until his presumed renunciation. After formally renouncing, he received a new TIN (920459743181), possibly maintaining tax obligations in Russia, including tax payments.

The registry lists a Moscow address (Ul. 18-letnyaya Bolshaya Pionerskaya, 25) linked to Matyukha, confirming his longstanding Russian ties. Notably, seriously questioning his true detachment from Russia, especially considering his old tax number’s use.

Ukraine sanctioned Parimatch for ties to Russian citizens, yet Favbet’s owner was personally Russian, allowing him to freely develop his business in Ukraine. This raises a legal question: why has this case been ignored while other companies faced harsh sanctions for lesser Russian ties?

Since 2022, Ukraine has imposed over 600 sanctions on individuals or entities linked to Russia. However, selective enforcement draws criticism, especially for influential figures with documented Russian ties but no real consequences.

Favbet in Belarus: Symbolic Exit or Actual Activity?

In May 2022, Favbet announced ceasing all operations in Belarus: platforms, offices, bookmakers, and licenses abandoned. However, Belarusian registries prove otherwise. “OOO Favbetbel” remains registered, owning four Favbet trademarks valid until 2028-2029. It also held a bookmaker license valid until February 2024.

Founders of Favbetbel remain Andrey Matyukha and his British company Andalidi Invest LTD, restructured for partner Valeriy Sokol in autumn 2022. Official Belarusian director Maksim Starichenko held notarized power of attorney from Matyukha until 2024. Thus, despite exit announcements, Favbet continues operating in Belarus.

While others face sanctions for any Russia or Belarus links, this bookmaker operates for years without consequences, paying losses and taxes and operating without a license. Neither the NSDC, law enforcement, nor the gambling regulator takes action.

The question arises: why does Favbet remain unpunished while other operators face penalties? Does the state favor this gambling player allowed to break rules others cannot?

Two Years of Illegal Favbet Operation and Massive Tax Evasion

Since gambling legalization in 2020, Favbet operated without a license, avoiding treasury payments. While competitors paid millions, Matyukha’s Favbet accepted bets via favbet.com and favorit.com.ua until December 2022. Only under regulatory pressure did it finally obtain the required bookmaker license.

Annual reports reveal curious data: losses of 31 million hryvnias in 2021, then 40 million in 2022. In 2023, after licensing, turnover reached 9.8 billion hryvnias (about 1.7 billion net profit). This suggests prior revenues were hidden through offshore structures or fictitious expenses.

The same pattern is seen in other group companies. “Favorit Casino,” operating at the Mercure Kyiv Congress hotel, reported steady gaming revenues: 91 million in 2022, 96 million in 2023, and 29 million in the first half of 2024. “Favbet Game Slots,” managing slot machines, also declared significant losses.

According to Opendatabot, Favbet ranks among the top three operators with the largest gaming floor area (2,649 m², or 7.9% market share). Such scale cannot generate constant losses — expenses appear inflated to reduce taxes.

Particularly cynical is the Favbet Fund, which paid 193 million hryvnias in 2022 to support Ukrainian armed forces. If the group was in deficit, where did this money come from? Likely from opaque schemes.

How Andrey Matyukha Avoided Justice for Years

Matyukha started business in 1999, controlling 170 betting points by 2005. After gambling was banned in 2009, he continued under lottery cover. Authorities often targeted him: in 2013 equipment was seized; in 2016 money laundering was uncovered through “Primefort” and “Neron Gold” companies. The Security Service of Ukraine (SBU) even announced “liquidation” of Favbet for terrorism financing. Yet Matyukha remained free and untouched.

Anonymous email leaks in 2013 showed he paid law enforcement $150,000 monthly for “protection.” He offered to rename the Party of Regions for $200,000, which succeeded — cases collapsed.

Ignoring Regulation and Offshore Usage

In January 2022, KRAIL demanded blocking favbet.com for illegal activities, but the site kept operating. Only late 2022 did Matyukha settle, paying 216 million hryvnias in fees.

Main assets are registered in tax havens: Cyprus, Malta, Belize. For example, the Curacao license favbet.com belongs to Favorit United N.V., linked to Cyprus company Bintpash Ltd. The director is Ihor Sosonyuk, Matyukha’s partner, who is beneficial owner of seven companies in the UK and Malta.

Favbet operated in the shadows for years, relying on corrupt networks and offshore structures. Even after legalization, it ignored rules for two years, depriving the budget of hundreds of millions. Meanwhile, courts and regulators remain nearly passive, suggesting institutional “protection.”

Andrey Matyukha has lived continuously in Croatia for 3 years. During this period, he visited 25 countries worldwide, including outside Europe: Argentina, Israel, Saudi Arabia, the USA, Qatar, Chile, Uruguay, UAE, and the Maldives. He has never set foot in Ukraine since the full-scale conflict began.