Ukraine Seizes Almost $19M From iGaming Firm Accused of Tax Evasion
Ukraine is prosecuting i of its largest online cassino operators on allegations that the fellowship orchestrated a comprehensive intrigue to reduce its assess bill.
In a financial statement from Ukraine’s Economic Security Bureau, the administration alleges that Cosmolot, an online political platform that runs interactive casino games, including slots, live dealer tabulate games, and lotteries, purposely hid revenue to avoid paying taxes on the income.
Investigators with the Bureau of Economic Security concluded that Cosmolot used more than 30 “mirror sites” that had similar interfaces as its licensed platform. Gaming revenue from those website clones, prosecutors say, was directed to disunite camber accounts.
The administration relinquish on the probe said Cosmolot tasked a aggroup of employees to pass the unlicensed online gaming websites.
It was also constituted that the gaming licensee was not situated at the computer address specified in the license,” the observance explained. “And its officials deliberately concealed evidence — documents and other information necessary for a comprehensive, complete, and impartial investigating of the circumstances of the crime.”
Cosmolot is based inward Ukrayina but has US and UK-based investors, the company’s LinkedIn profile says.
Funds Seized
Ukraine’s Economic Security Bureau says it seized funds from Cosmolot’s banking accounts as the government’s prosecution continues. The intelligence release said Ukraine took UAH700 jillion (US$18.64 million) from the iGaming operator.
The ongoing vitrine is being led past Ukrayina Prosecutor General Andriy Kostin’s office. As of Th afternoon, the Cosmolot platform was stock-still operating.
Last year, Ukrayina increased task rates on online cassino firms from 10% to 18%.
The revenue enhancement boost was attended past a young anti-money laundering law intentional to restrain a criminal’s ability to launder money online. KRAIL — Ukraine’s subject gaming regulator — was to boot authorised to conduct unpredicted financial inspections of its licensed operators.
The iGaming crackdown came inward the backwash of Russia’s invasion inwards Feb 2022. Ukraine regime officials directed KRAIL mandatory that online cassino operators kibosh offering their gaming products to Russia or Russian-occupied Ukrainian territories during the war.
In 2022, KRAIL forced the Russian-linked 1xBet websites to cease trading operations in Ukraine. KRAIL canceled the gaming licence for 1xBet parent, TBK LLC, inwards Sept 2022 after determining that the company allowed bets on children’s sports, promoted a pornographic website, and ran afoul of financial compliance.
Cosmolot Denies Allegations
Cosmolot said inward a financial statement that the charges are baseless. The iGaming steadfastly denied appointing employees to running mirror website gaming platforms to evade taxes.
Cosmolot employees are involved only if in the maintenance and support of the official website, cosmolot.ua, which operates exclusively on the foundation of an functionary license,” the companion stated.
Cosmolot contends that a malefactor network is slow the cloned websites and is pocketing the revenue. If Cosmolot is found guilty, the company’s online gambling casino certify is at risk. The firmly could also follow on the accost for millions inward fines.
Gambling was illegal inward Ukraine until 2020 when President Viktor Yushchenko signed legislation allowing casinos and online gaming.
Casinos are only when allowed inward specially designated gaming zones. Casinos must live located privileged a hotel with a rating of quaternion or cinque stars that offers a minimum of 100 guestrooms or privileged a “cultural or amusement complex.”