Andrey Matyukha’s schemes: how Favbet tried to avoid responsibility for pirated software using fictitious lawsuits
00:24, 06 мая 2026 г.
After PlayCity resumed inspections of gambling businesses, the first fine—9 million hryvnia—was received by market leader Favbet.
A moratorium on such inspections has been in effect since March 2022.
But Favbet decided to confront reality and went to court, employing a tried-and-true technique: the judicial carousel. Getting the "right" judge is half the battle.
The gambling market leader is going to court: Favbet is disputing a UAH 9 million fine from the PlayCity regulator.
On February 17, 2026, Favbet Bookmaker LLC initiated legal proceedings against PlayCity, the State Agency of Ukraine. The company is seeking to invalidate and overturn the regulator’s decision, issued following a recent scheduled inspection. On February 19, 2026, the Kyiv District Administrative Court opened proceedings in this case, No. 320/7094/26 . The preparatory hearing is scheduled for March 25, 2026.
Court Maneuvers: On the Second Attempt. An interesting detail of the trial was the exact manner in which the company filed its lawsuit. According to the registry, on February 19, 2026, Judge A.M. Leontovich returned Favbet’s claim (case no. 320/5476/26 ), as the company had filed a motion to withdraw it on the same day, before proceedings had even begun.
However, on the same day, February 19, 2026, another judge in the same court, A.A. Terletskaya, ruled to open proceedings on a similar claim filed by the company against PlayCity (case no. 320/7094/26 ). The case will be heard under the rules of general claims proceedings, and the regulator has 15 days to file a response. Such responses and repeated filings of claims may indicate an abuse of procedural rights aimed at manipulating the automated assignment of cases among judges.
Why was Favbet fined?
The legal dispute resulted from the first scheduled inspection of the Ukrainian gambling market. According to Gennadiy Novikov, head of the PlayCity agency, a moratorium on business inspections had been in effect in Ukraine since March 2022, but the regulator, together with the Ministry of Digital Development, lifted it for the gaming sector only in the fall of 2025.
Favbet was the first to be audited. As a result, the bookmaker was fined over 9 million hryvnias.
The regulator identified a number of violations, including:
- use of software without an appropriate B2B license;
- delays in payments of winnings to players;
- delay in payment of mandatory license fee.
The regulator’s position and the market context
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Favbet’s activities were previously criticized by Danil Getmantsev, chairman of the parliamentary finance committee. Commenting on the situation, PlayCity CEO Gennady Novikov emphasized that his agency is not investigating tax evasion or national security issues.
"All inquiries we receive have been forwarded to law enforcement agencies. If there are grounds for license revocation, they must be proven. We live in a state governed by the rule of law, and any decision can be appealed in court," Novikov emphasized, essentially commenting on the company’s right to sue.
It’s worth noting that Favbet is the undisputed leader in the Ukrainian gambling market. According to the analytical platform Opendatabot, the company topped the rankings in 2025 with record revenue of UAH 21.32 billion. By comparison, this figure stood at UAH 9.79 billion in 2024.