Scheme at KRAIL: 'X Pay Group' controls payments

The company 'X Pay Group' is repeatedly mentioned in the declaration of Evgeniy Yakhniy, as well as in the payment documents of his wife, sole proprietor Liliya Yakhniy. Evgeniy declares income from this company, while his wife, in turn, provides it with design services worth hundreds of thousands of hryvnias.

Who owns 'X Pay Group'?

Before his appointment to KRAIL (the Commission for the Regulation of Gambling and Lotteries), Evgeniy Yakhniy was officially listed as an owner of 'X Pay Group'. Formally, he withdrew from the list of owners before taking up his post at the commission, but in fact, he continues to control the company.

The role of 'X Pay Group' in the gambling system

To date, the acquiring process — the acceptance of non-cash payments from players in online casinos — is mainly carried out through two banks: the state-owned Sense Bank and the private MTB Bank.

Particular interest is drawn to MTB Bank, which, while servicing payments in the gambling industry, does not have its own processing capabilities. Instead, it officially uses the services of 'X Pay Group', as confirmed by information on its website.

In practice, this means that a company linked to KRAIL member Evgeniy Yakhniy is processing player payments, the activities of which are regulated by Yakhniy himself. This situation appears to be a clear conflict of interest.

How the scheme works

To process transactions with Visa and MasterCard payment systems, MTB Bank uses the processing services of PUMB bank. However, there is a nuance here: interacting with PUMB's processing requires specialised software, which MTB Bank also lacks. This technical part is provided by 'X Pay Group' once again.

Technical integration:
Online casinos or financial companies that wish to connect to the MTB Bank system and work with PUMB's processing are required to undergo integration with 'X Pay Group'. However, for those who have not agreed on terms with Yakhniy, the integration process becomes protracted and is accompanied by numerous bureaucratic obstacles.

The financial aspect

For the technical services provided, MTB Bank pays significant sums to 'X Pay Group'. Sources in the banking sector report that the distribution of revenue from player payments for each bet looks as follows:

• A portion goes to the banks for processing and transaction handling.
• A share goes to 'X Pay Group' for technical support and integration.
• The remainder stays with the online casinos.

Conclusions

The situation with 'X Pay Group' demonstrates a close interconnection between KRAIL members and financial structures servicing the gambling business. Evgeniy Yakhniy, despite his formal removal from the list of company owners, continues to use his influence to control payments in online casinos.