Parimatch, one of the biggest Ukrainian betting companies, has announced ceasing its operations due to a crackdown by the Ukrainian authorities.
"Parimatch LLC, in compliance with the Constitution, laws of Ukraine and the decree of the President of Ukraine No. 145/2023 "On the decision of the National Security and Defense Council of Ukraine dated March 10, 2023 "On the application and introduction of changes to personal special economic and other restrictive measures (sanctions)" reports the following: The operational activity of the company is suspended; the platform is not available for customers, the pm.ua site is blocked," noted the Parimatch statement.
Earlier, the President of Ukraine had imposed sanctions against more than 280 legal entities and 120 persons affiliated with bookmakers and lottery organizers. Quite a few of them have Russian origins.
Zelensky, the Ukrainian President, accused them of withdrawing money from Ukraine through gambling schemes and "financing various Russian combinations".
Some of the sanctioned companies noted that the restrictive measures apply to specific legal entities and do not affect the business as a whole.
However, Parimatch has decided to stop operations, refund clients' money from balances, suspend all partnership contracts and terminate contracts with the company's staff.
"We understand that stopping all operational processes of the company will not allow us to fulfill our obligations to the team," Parimatch noted.
Bookmaker company Parimatch not only accepted bets on the outcome of esports competitions but also sponsored a large number of tournaments and teams. Its closure may have serious consequences for the entire industry.
However, business owners may resume operations in another jurisdiction and/or under another brand.