In late September, the cyber police announced that its staff in Kiev had halted the operations of an IT firm creating a ready-to-use online casino.
Even though the authorities didn't specify the company, it was later revealed that they had raided the Kiev office of Soft2bet, a European IT company specializing in online entertainment and building turnkey online casinos. Soft2bet has offices in Bulgaria, Serbia, Portugal, Cyprus, and Malta, and recently marked its fourth anniversary.
The cyber police's spokesperson revealed that the company had 80 employees, with their basic package of services costing $20,000. They also provided internet marketing for $100,000 to boost online presence and attract new users. The company's monthly income exceeded $500,000.
The reason for the office closure and raid is unclear. The company itself appears to only develop software for online casinos, and the law allowing online casino activities in Ukraine came into effect in August 2020.
Soft2bet has not provided any explanation or comment on the raid and the criminal case under Article 203-2 of the Ukrainian Criminal Code, pertaining to illegal gambling activities. Violating this article can result in a fine and confiscation of gaming equipment.
Perhaps, Soft2bet is keeping quiet because its Kiev office is not officially listed on the website, indicating illegal operations. They are likely avoiding discussing the troubles to maintain their image.
There is no comment on the hiring of employees for the Kiev office, despite the lack of official presence. Job postings for Soft2bet were found on the DOU website, indicating the office location on Vasilkovskaya Street; however, this information has been removed.
However, this information is no longer available.
The cyber police reported that the criminal group established a company in Ukraine for web and online game development but actually provided services for online casinos, including gaming platform development for gambling.
The specialists at the cyber police in Kiev have found more than 20 online casinos, with about 500,000 players, that this company is part of. The cyber police didn't reveal the names of the sites, but it's likely that they include Malina Casino, YoYo Casino, and Buran Casino, as well as the 7 Stars Partners (7SP) affiliate program.
The reason for the closure of the office and the criminal case against Soft2bet is not completely clear. The police's official explanation is not entirely satisfying because these types of establishments have been allowed in Ukraine since August, which is at least a month before the raid on Soft2bet. This is not the first time online casinos in Ukraine have been targeted this year. In January, the cyber police searched Zlodei Advertising, accusing them of creating, supporting, and promoting online casinos. In February, the cyber police exposed the organizers of another online casino making $1 million a month. However, this happened before the law allowing such activities was passed, so it was logical.
In relation to the criminal case against Soft2bet, it can be assumed that even though these activities are allowed in Ukraine, the company chose not to bother getting the necessary permits and licenses, which are very expensive. They might have thought that since their main activity is online, they could do without them.
In this case, the money saved is not small: a license for an online casino costs 6.5 thousand minimum wages – 30.7 million hryvnias, which is over a million dollars. For that kind of money, you might take the risk.
In trying to save money, it seems these cunning businessmen didn't consider Ukrainian realities. It's no secret that underground casinos and slot machine halls in the country were either owned or protected by structures of the Ministry of Internal Affairs. After pushing them into the deep underground, many police officers lost significant earnings. Existing online offices can't make up for these “losses” – there are too many applicants for too few offices. Also, existing online casinos are not interested in having more competition. It's quite possible that the Soft2bet office was “leaked” by competitors to their patrons. And Soft2bet either didn't realize they had to pay for their activities, or the “patrons” who came to them had excessive demands.
We should also consider the recent sale of the Dnepr Hotel in downtown Kiev. It was bought in the summer, and there are persistent rumors that it will be turned into a casino. There are also persistent rumors linking the buyers to high-ranking officials in the current government. If this is true, then who needs competitors? Keep in mind that Soft2bet had a half a million players. It's better to eliminate potential competitors from the market.
But this, albeit very plausible, is still guesswork, because there is no exact information, although more than two months have passed since the searches of the Soft2bet office. As there is no information about what will happen to the Ukrainian staff of the Kiev branch of Soft2bet. Here, too, we are on a slippery slope of guesswork, but we can predict with almost one hundred percent certainty: they will solve their problems with the police themselves. For a simple reason – there is no official representative office of Soft2bet in Ukraine. And here you are, too. Has anyone entered into employment contracts? Here you go. This should once again serve as a reminder to those who are looking for easy money in the gaming industry – and not only to the players, but also to its employees. But it won’t work.
The defendants in the criminal case can console themselves with the words of their boss Uri Polyavich, co-founder of Soft2bet.
It was not for nothing that he said, celebrating the fourth anniversary of the creation of his company, that “Soft2bet employees, whether they be programmers, analysts, support agents, quality control managers or anyone else, are considered by the company as heroes.” We hope that these words of his will serve as a consolation to them on their long journey through the offices of investigators and courts.
In the meantime, the criminal case against Soft2bet is unwinding, and competitors are also unwinding. A Google search for “Ukrainian online casino” gives at least 55 links to active online resources. And it is not a fact that one day Soft2bet will not appear among these links – after all, Ukraine is a country of unique opportunities. There would be money and understanding with whom to share.
