«Parimatch has Ukraine licence revoked in latest twist» – 4H сomments on the situation

EGR Global  has published an article about Parimatch having its licence revoked by the Ukrainian gambling regulator, KRAIL, in accordance with President Volodymyr Zelenskyy’s sanctions handed down in march.

4H Agency Senior Consultant  Dmitry Hotsyn  delved into the complexity of the case:

«The Presidential Decree to impose sanctions, effective from 10 March 2023, represents one of numerous of links in a chain of decisions targeting individuals and businesses with alleged connections to Russia. 

These factors make sanctions a nuanced and delicate issue, especially for the targeted companies, such as Parimatch, the first and largest Ukrainian betting operator. The sanction decree has significantly impacted their business, illustrating the tangible effects of these legal and political decisions within the global business landscape.

Though tectonic in its nature, KRAIL's decision logically follows March's Presidential Decree to impose sanctions on businesses allegedly connected to Russia. Criticized by various stakeholders for its enforcement practices, KRAIL's move can be interpreted as an effort to quash rumors about the regulator's institutional weaknesses.

For international players eyeing the Ukrainian market, KRAIL's decision sends mixed messages. Of the six betting licenses issued (the priciest among all online verticals), three have already been revoked. The implications of this decision could be far-reaching for the industry. For Parimatch, however, not much is likely to change.

The company wound down active operations shortly after being hit by the sanctions in March 2023, with almost all business suspended by the beginning of May. Still, the revocation of the license will likely take its long-term toll.

 Parimatch appears to have chosen the path of legal battles to overturn the sanctions. Now, even if they were to win in court—an unlikely scenario—they might still need to engage in another fight with the regulator».

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