Mykhailo Zborovsky: How Ukraine Is Fighting the Shadow iGaming Sector
“Combating the illegal iGaming sector is critically important to ensuring the financial stability and transparency of licensed companies.” This is the firm belief of Mykhailo Zborovsky, an expert in strategic iGaming product development. Creating transparent rules is, of course, essential, but the legal market also requires equal conditions for all providers. Put simply, the state must take a tough stance against those who continue to operate in the shadows. The success of this fight will determine investor confidence and the potential for economic renewal.
In the past, Mykhailo Zborovsky was a Cosmobet beneficiary, giving him first-hand insight into the realities of the Ukrainian market.
Legal and Fiscal Mechanisms
Let’s start with the positive developments. Along with the 2020 legalization, Ukrainian legislation has strengthened criminal liability for organizing an illegal gambling business. Law enforcement agencies regularly identify and shut down underground online platforms. This creates a strong deterrent effect for potential violators by demonstrating the inevitability of punishment.
A relatively new enforcement tool is enhanced financial monitoring. Banks and payment systems are now required to more closely scrutinize suspicious transactions linked to unlicensed gambling activities. Zborovsky notes that cutting off financial flows is the most effective way to drain illegal businesses of resources.
The Fight Against the Illegal Sector
Mikhail Zborovsky emphasizes: licensed projects like Cosmobet have always shown an example of compliance with legal norms. The better the fight against the illegal sector is, the bigger and better the entire iGaming industry will grow.
The key battleground lies in payment channels. Illegal gambling operations often rely on “grey” schemes and unlicensed payment systems to circumvent the law. The National Bank of Ukraine and financial regulators are taking steps to isolate and block these channels, making illegal operations extremely difficult to sustain.
Practical tools for combating the shadow sector include:
- Regular information exchange to identify suspicious MCC codes and transactions.
- Initiation of criminal cases against organizers and owners of illegal networks.
- Use of intelligence from licensed companies to identify shadow competitors.
- Data sharing with foreign regulators to block offshore operators.
Another important front is the fight against illegal advertising. Shadow operators frequently use aggressive and misleading marketing tactics, ignoring both legal and ethical standards.
