Behind the new Cosmobet casino is shadowy Russian capital

Behind the new Cosmobet casino is shadowy Russian capital

Cosmobet is suspected of having ties with Russian capital and possible rebranding as "Cosmolot," backed by businessman Sergey Tokarev.

Recently, information was spread by the channel "Insider" stating that the online casino Cosmobet, which received a license from the Commission for the Regulation of Gambling and Lotteries (KRAIL), might be a rebranding of the popular Ukrainian casino "Cosmolot." According to the investigation, "Cosmolot" is backed by Russian businessman Sergey Tokarev, accused of tax evasion amounting to over 1.2 billion UAH. The investigation also points to possible Russian ties in the management of the new online casino Cosmobet.

KRAIL and the lack of thorough inspection: challenges for the regulator

We contacted KRAIL with a request regarding the ties of the Cosmobet casino with Russian businessmen and the alleged influence of Sergey Tokarev. However, the response from the regulator was somewhat formal. KRAIL stated that their verification before issuing licenses is based solely on the compliance of the submitted documents with the legal requirements. If the document package is correct and meets the legal norms, the license is issued without further analysis.

This raises several questions about the effectiveness of regulating the gambling market in Ukraine. Is a mere formal document check sufficient, especially amid war and growing economic threats from Russian capital? KRAIL’s responses indicated that there are no mentions of Tokarev or other ties with Russian business in Cosmobet’s documents. However, this does not alleviate public concern, as the gambling business is a sensitive area that can serve as a cover for money laundering or financing undesirable elements.

The response from Cosmobet brand owner and the position of the company "Neurolink"

Amid these allegations, the company "Neurolink," which owns the Cosmobet brand, sent a response in the form of a claim, insisting that they have no connection with "Cosmolot" or Sergey Tokarev. According to company representatives, these allegations are unfounded, and they are ready to prove it with documentation. Company representatives also expressed readiness to provide official comments. The media editorial team seeks to comprehensively cover the situation, so they invited representatives from "Neurolink" for an interview for a more detailed conversation.

Main issue: KRAIL and the formal approach to checks

The main focus of this situation is not so much the allegations against Cosmobet or its owners but the questions toward KRAIL itself. Can state regulators ensure an adequate level of inspection for new licensees? Is a mere formal document check sufficient to issue a permit to operate, especially in conditions where Ukraine is fighting against the influence of Russian business?

According to the provided responses, KRAIL essentially limits itself to verifying the compliance of submitted documents. This means that if all requirements are met from a legal standpoint, the license is issued, allowing the company to operate in Ukraine’s gambling market. However, amid war and sanction pressure on Russian companies, such formal practices can be dangerous. There is a risk that under the guise of local companies, individuals with questionable reputations or those with ties to the aggressor country might operate.

Given the above, it becomes evident that the system of regulation of the gambling market in Ukraine needs reform. A formal approach to document checks cannot ensure full transparency and reliability of the businesses that receive licenses. This is especially true in sensitive areas like gambling, where there are potential risks of financing illegal activities or influence by individuals associated with the aggressor country.

Source: StopCor