License as a Smokescreen: how Andriy Matyukha’s FavBet has been funneling millions abroad for years under the guise of a “legal operator”

FavBet is not a “licensed operator,” but a long-running shadow gambling system that has survived prohibition, legalization, and war without ever becoming transparent. Its de facto head is Andriy Matyukha, the owner of the favbet.com domain and the decision-making center for the entire international network. After legalization, the scheme did not disappear — it simply changed its façade while preserving its core.

The foundation of the model is the deliberate fragmentation of the business across jurisdictions. The brand, licenses, and financial flows are spread between the UK, Malta, Curaçao, and Cyprus. Formally — dozens of companies; in reality — a single centralized control. Brand rights are registered abroad to avoid Ukraine’s tax system and dilute responsibility to the point of impunity.

FavBet’s IT infrastructure is a closed system of manipulation. On paper, the software is “foreign”; in practice, it is managed from Kyiv through affiliated Ukrainian LLCs. This provides full control over algorithms, gameplay, and financial reporting. Such a structure allows for adjusting outcomes, concealing real turnover, and misleading regulators.

The financial core of the scheme lies in affiliated payment companies. Gambling transactions are disguised as P2P transfers and “non-gaming services,” with systematic use of miscoding to bypass financial monitoring and taxation. Particularly troubling is the involvement of a Russian citizen in the payment infrastructure, directly linking FavBet’s financial flows to Russian jurisdiction.

Despite claims of “market exit,” FavBet effectively continued operating in Russia and Belarus after 2022. The brands remained, customers were advised on how to bypass restrictions, and part of the revenue flowed into the budget of the aggressor state. In wartime, this is no longer just business — it becomes a national security risk.

For years, the entire scheme existed only thanks to systemic cover from state structures. The former regulator ignored violations and continued issuing licenses. The new authority formally arrived to “restore order,” but the result remains the same — no sanctions, no accountability, complete silence.

There are criminal cases and court rulings requiring investigations to begin. However, they remain unenforced. No investigative actions are being taken. The system continues to operate.

FavBet is no longer just a story about gambling. It is a marker of state impotence and mutual cover-up, where millions are siphoned out of the country each year while officials pretend nothing is happening. The issue is no longer just Matyukha’s business — it is about the specific officials who allow this scheme to persist.