FavBet Ukraine Crisis: Layoffs, Payment Freeze & Tax Probe

Ukrainian gambling operator FavBet is experiencing severe operational difficulties, including widespread staff layoffs, payment system disruptions affecting customer withdrawals and deposits, and increasing regulatory pressure from Verkhovna Rada Finance Committee Chairman Danylo Hetmantsev. The company’s troubles have sparked concerns about its complex offshore corporate structure and future viability in the Ukrainian market.

Ukrainian gambling operator FavBet, once the country’s largest iGaming company by market share, is facing multiple simultaneous crises that threaten its operational continuity. The company has begun mass layoffs across its technology division, acknowledged payment processing disruptions affecting customer transactions, and publicly confirmed regulatory pressure from the Verkhovna Rada’s Finance Committee Chairman.

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Mass Layoffs Hit FavBet Tech

FavBet Tech initiated a wave of layoffs starting in mid-November 2025, with particular impact on the company’s R&D department. According to reports from the Telegram channel “Overheard in IT,” the company laid off nearly the entire R&D department, with terminations occurring without the standard 30-day notice period.

Multiple former FavBet Tech employees have updated their LinkedIn profiles to “open to work” status, signaling the scale of the job cuts. Among those affected are HR Business Partnership Manager Tetyana Galchenko, Software Engineer Igor Andrianov, and IT Project Manager Oleksandr Biletsky, each of whom had worked for the company between six months and two years.

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When contacted by Ukrainian business media outlet dev.ua, FavBet Tech confirmed the layoffs but declined to specify the number of affected employees or departments involved.

“This is a forced decision caused by significant external pressure on Ukrainian business,” the company stated.

“The company acts exclusively within the framework of current contractual obligations with IT specialists. All terminations of cooperation occur in accordance with contractual terms and with full respect for rights.”

The company did not provide additional details about the “external pressure” referenced in its statement.

Payment System Disruptions Confirmed

In late October 2025, FavBet customers began reporting widespread difficulties with deposits and withdrawals through the platform. The company initially reported problems with Visa card processing, then extended to Mastercard transactions, before payment issues became more systemic.

FavBet Group officially confirmed the payment delays in a statement posted on social media, directly attributing the disruptions to pressure from Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Tax, and Customs Policy.

According to the company’s statement, banking institutions working with FavBet received what the operator described as “unlawful demands” from officials to completely cease processing payments for the company. The statement emphasized that customer funds remain secure in client accounts and will be paid out once payment infrastructure is restored.

“Despite this, the inviolability of user funds is fully ensured: all funds are stored in client accounts, protected, and will be paid out immediately after the payment infrastructure is restored,” the company stated. “FAVBET has also developed alternative payment mechanisms in manual mode, which are currently being worked on.”

Sources indicate that FavBet’s payment processing is currently conducted exclusively through Europrombank, with other Ukrainian banks having temporarily suspended cooperation or disconnected the company’s payment channels.

Regulatory Pressure and Tax Controversy

The payment disruptions follow months of escalating tension between FavBet and Ukraine’s financial oversight authorities. Chairman Hetmantsev has publicly accused FavBet of tax evasion and manipulating payment structures to reduce tax obligations.

In July 2025, Hetmantsev stated on Telegram that budget losses from FavBet group companies reached UAH 2.5 billion due to minimizing personal income tax and military levy payments. He noted that the company’s income tax payment rate decreased from 19.7% to 18.3% in Q1 2025, despite income increasing to UAH 5.3 billion.

“Despite the fact that the tax authorities have taken a tough stance on tax payments, the Favbet group companies continue to cause billions of losses to the state during the war,” Hetmantsev wrote.

In August 2025, Hetmantsev further accused FavBet of reducing Gross Gaming Revenue tax payments through what he described as “manipulations,” calling for the State Tax Service to investigate.

The company has maintained that it operates within Ukrainian law and has been a significant taxpayer. According to FavBet’s own reporting, the company paid UAH 4.37 billion in taxes in the first half of 2025, representing a 40% increase over the same period in 2024. For the full year 2024, the company reported paying UAH 6.75 billion in taxes.

The Association of Ukrainian Gambling Operators confirmed that FavBet paid UAH 6.4 billion in taxes during the first nine months of 2025, making it one of the largest taxpayers in Ukraine’s legal iGaming sector.

Complex Offshore Corporate Structure

An investigation into FavBet’s corporate structure reveals a complex network of UK-registered companies with links to offshore jurisdictions including Cyprus, Malta, and Belize. According to UK Companies House data, more than ten UK-registered entities are associated with FavBet or individuals linked to founder Andriy Matyukha.

Multiple UK companies tied to FavBet are registered at the same address in Watford—Office 143, Regico Offices The Old Bank, 153 The Parade High Street—with minimal share capital, consistent with holding or transit company structures commonly used for cross-border financial management.

FavBet Invest LLP, one of the key UK entities, was registered on December 28, 2012, with designated members listed as Andalidi Assets Ltd. and Andalidi Invest Ltd. The company’s minimal capitalization and shared address with other FavBet-linked entities have raised questions about the ultimate beneficial owners and the flow of profits through these structures.

Ukrainian MP Hetmantsev has commented on these corporate arrangements, noting that such structures “often involve company chains across the UK, Cyprus, Malta, Belize, and other jurisdictions.” He indicated that these patterns are considered indicators of financial compliance risks under UK standards, particularly for companies managing cross-border transactions.

The Curaçao license for FavBet’s international operations was obtained by Favorit United N.V., with Cyprus-based Bintpash Ltd. reportedly processing payments for FavBet players. Investigative reports indicate that Andriy Matyukha is the direct beneficiary of seven companies registered in the UK and Malta.

Current Operational Status

As of late November 2025, FavBet has reportedly stopped accepting new customer registrations in Ukraine. The company’s website displays notices about payment processing difficulties and technical updates to comply with new requirements from banks and the National Bank of Ukraine.

Ukrainian customers continue to report delays in withdrawals and inability to make deposits through standard payment channels. FavBet has assured customers that funds remain secure and that the company is developing manual payment mechanisms as alternatives.

Hylad Solutions LLC, responsible for placing FavBet’s online advertising, sent letters to partners requesting temporary postponement of payment obligations under contracts, citing “sudden technical and administrative restrictions” on bank accounts.

The company emphasized in its communications that it operates exclusively within Ukrainian legislation, adheres to licensing conditions and responsible gaming standards, and maintains that it “does not carry out any activities outside the legal framework.”

Industry Context

The Ukrainian gambling market has experienced rapid growth since legalization in 2020, with the industry paying UAH 13.94 billion in taxes during the first nine months of 2025, according to the Association of Ukrainian Gambling Operators. However, industry representatives estimate the shadow market ranges from UAH 37.72 billion to UAH 66.53 billion, with up to 90% of illegal online casinos having Russian origins.

The legal iGaming sector’s contribution to Ukraine’s wartime budget has made it a significant source of government revenue, but also a target for increased regulatory scrutiny and enforcement actions against alleged tax evasion.

FavBet’s simultaneous operational challenges—workforce reductions, payment system disruptions, regulatory pressure, and questions about its corporate structure—represent one of the most significant crises to affect Ukraine’s gambling industry since market legalization.

The company has not announced whether operations will continue, scale back, or potentially cease in the Ukrainian market.