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Ukraine regulator fines Sparktek UAH 4.3m over payment violations

The regulator launched an unscheduled inspection after receiving a player complaint.

1 min read
Ukraine Fine
Key Points
The operator was found to have allowed players to deposit funds from third-party bank accounts
PlayCity said Ukrainian gambling laws expressly prohibit this

Ukraine’s gambling regulator PlayCity has fined the operator Sparktek UAH 4.3m ($96,590) over payments processing.

More specifically, PlayCity found that the operator allowed players to make payments using funds from a third-party bank account. The state agency emphasised that gambling laws expressly prohibit such practices.

An unscheduled inspection was conducted following a player's report of possible violations by the company. PlayCity added that it will continue to investigate reports from citizens of possible violations by gambling organisers.

Earlier this week, PlayCity opened a tender for a software module designed to automate restrictions on military personnel's access to gambling in Ukraine.

The module will connect the Register of Persons with Restricted Access to Gambling to the State Register of Military Personnel, which Ukraine's Ministry of Defence is implementing. Information will pass between the two registers through the Trembita government data exchange system.

Meanwhile, Ukraine’s Verkhovna Rada (Parliament) Tax Committee backed a draft law which aims to overhaul the leadership and governance of PlayCity.

The legislation would allow civil service competitions for PlayCity positions despite martial-law restrictions and introduce a competitive process to select the regulator’s head.

It would also strengthen integrity requirements for PlayCity officials and introduce an independent external audit of the regulator, with international expert involvement.

In separate news, the Cabinet of Ministers has dismissed Gennady Novikov from the position of PlayCity Head. Instead of Novikov, his deputy, Oleksiy Tomashuk, will lead the regulator. This dismissal comes as a formality, following Novikov’s voluntary resignation in July.

Good to know

PlayCity recently selected Ukrainian GovTech developer Kitsoft to build the second phase of the State Online Monitoring System (SOMS)

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