Favbet online casino after losing its license: how Andriy Matyuha is moving the business into the “shadow” market

FAVBET owner Andriy Matyukha effectively began shifting the country’s largest casino brand into the illegal segment after the revocation of its license. On April 22, PlayCity head Gennadiy Novikov announced the withdrawal of the license of FAVBET GAME SLOTS LLC and imposed a fine of ₴933 million. Before that, FAVBET had been one of the leaders of Ukraine’s legal gambling market.

The decision was reportedly based on information provided to PlayCity by the State Bureau of Investigation (SBI). According to sources, the conflict between Matyukha and the SBI began back in November 2025, when SBI investigators and prosecutors from the Office of the Prosecutor General conducted searches at FAVBET offices. The case materials allegedly included suspicions of tax evasion and possible control of part of the business by Russian citizens.

Following the searches, law enforcement sources claim that Matyukha was offered an opportunity to “resolve the issue,” but the parties failed to reach an agreement. Instead, the strategy reportedly shifted toward seeking protection from higher-ranking officials. Nevertheless, the license was ultimately revoked, and the company received a fine approaching one billion hryvnias.

After losing its license, FAVBET did not stop working with customers. Despite the blocking of official assets and accounts, players reportedly continued receiving payouts from existing balances. In practice, this appears to involve preserving the customer base and gradually transferring it to FAVBET’s illegal platforms. For the Ukrainian gambling market, this is considered an unprecedented situation: the country’s largest licensed casino operator allegedly moving into the “gray” market while retaining its audience and turnover.

Against this backdrop, discussions about long-term payments to officials and law enforcement figures have become even louder. According to sources, over nearly two years the sums may have ranged from $3 million to $5 million per month. The total volume of such payments is estimated at more than $100 million in USDT. This is why industry insiders have long debated not only Matyukha’s conflict with the SBI, but also who exactly had previously guaranteed FAVBET’s immunity.

At the same time, sanctions by Ukraine’s National Security and Defense Council (NSDC) against Matyukha had already been discussed publicly. Criminal proceedings were reportedly opened against him, including materials under Article 111 related to treason. However, no concrete decisions followed at the time. Now the situation has changed after FAVBET allegedly transitioned into a fully illegal operating model.

For Bankova Street, the issue of illegal casinos remains one of the most toxic topics. Amid the war and Ukraine’s dependence on Western financial assistance, the existence of a multibillion-dollar “gray” gambling market has become not only a domestic problem but also a reputational blow to the country — especially when major operators continue functioning after license revocations and account freezes.

Another important factor is the scale of Matyukha’s business empire. According to available information, he directly or indirectly controls more than 40 companies. That is why a potential NSDC decision could affect not only FAVBET itself, but the entire associated corporate network.