FavBet and VBet: Armenian roots and Russian traces

Two major bookmakers, FavBet and VBet, have effectively become dominant players in the Ukrainian sports betting market. However, behind the facade of their success lie serious questions regarding the origin of capital, potential Russian links, and tax violations.

VBet: "Russian traces" and Armenian roots

LLC "VBET Ukraine" is officially listed on the website of the Commission for the Regulation of Gambling and Lotteries (KRAIL) among operators that have received a licence. However, the company's background raises serious questions.

Until the end of 2022, the founder of "VBET Ukraine" was listed as the company Soft Construct Limited, registered on the Isle of Man. Among the beneficiaries were Armenian businessmen – brothers Vage and Vigen Badalyan.

According to a UNIAN investigation, Vigen Badalyan had partnership relationships with the Russian bookmaker Fonbet through the companies Radon VB, Soft Construct Limited, and BetConstruct. Moreover, even after the start of Russia's full-scale invasion of Ukraine, the Armenian giant remained the organiser of the Russian Poker Tour, which raises moral and legal questions.

FavBet: influence and suspicions of terrorism financing

FavBet has also come under the spotlight of journalists. Several years ago, the publication "Komentari" established that the official owners of the company are the family of Andriy Matyukha, while the unofficial curator of the business was named as People's Deputy Alexander Turchynov, who is close to Petro Poroshenko.

With the arrival of Volodymyr Zelensky, the company "conditionally emerged from the shadows". However, information can still be found on the internet that FavBet continues to operate in Russia and Belarus, where it pays out winnings to players.

In addition, journalists found that the company may be avoiding paying taxes on a particularly large scale through LLC "Lucky Land". Court documents even mentioned the possible involvement of the company in financing terrorism.

Blocking of investigations

Despite the evidence gathered by journalists and the suspicions directed at both companies, significant legal consequences have not followed. Cases regarding potential tax violations and links with Russia were stalled or completely frozen, which raises justified bewilderment.

Betting market under threat of monopolisation

FavBet and VBet continue to expand their influence, effectively monopolising the gambling market in Ukraine. The companies are clearing the market for themselves, gradually eliminating competitors.