What is happening with Parimatch Ukraine?

The unexpected and drastic decision to introduce sanctions against Parimatch Ukraine (PM) in March 2023 caused quite a stir in the legal gambling market of Ukraine. The largest player in the bookmaking sector was forced to completely terminate its activities, close its offices in Ukraine and dismiss hundreds of employees. It was impossible to logically understand why the activity of the Ukrainian brand, which paid more than UAH 850 million of license payments and taxes to the state budget, was stopped. The company's management did not agree with this decision either. From the first days of the introduction of sanctions, it systematically has been defending its right to continue legal operation in the Ukrainian market.

Recently, the required number of votes in support of a petition on the website of the President of Ukraine regarding the lifting of sanctions against PM was received. More than 25,000 Ukrainian citizens voted for consideration of the petition. The President has already considered the petition and sent a corresponding request to Prime Minister of Ukraine Denys Shmyhal regarding addressing the issue raised in the petition in accordance with the legislation and within the powers of the relevant state agencies.

The fact that the petition received the required number of votes quickly enough and received a prompt response from the President sends a number of positive signals both directly to Parimatch Ukraine itself and to the legal gambling market as a whole.

First, such a quick reaction to the petition shows that, despite the war, the issue of the functioning of the legal gambling market has not been neglected by the country's top political leadership, and therefore the efforts to complete the reform and to introduce the relevant legislative changes, which are currently being made by the Commission for Regulation of Gambling and Lotteries, will still have an effect.

Secondly, when sanctions were imposed on PM, I was one of the first to say that there was probably a mistake and the restrictions were imposed without properly examining all the circumstances and without receiving comprehensive explanations from the company itself. A review of this decision demonstrates that a civilized dialogue between the state and business is possible even in extremely difficult economic and military and political conditions. This is especially valuable, considering the fact that it is about such a critical issue for society as gambling.

Thirdly, the initiation of a review of the decision on sanctions gives hope that the restriction applied to PM will be lifted and the company will finally be able to return to work in the Ukrainian market. This will mean that thousands of jobs will be restored and the corresponding deductions to the state budget will be resumed.

Fourthly, a quick consideration of the petition demonstrates that even in the conditions of a martial law, mechanisms of direct democracy in Ukraine work effectively. After all, direct support of concerned citizens who are interested in the legal settlement of the issue is required for the consideration of the petition.

In addition to that, taking into account that PM was a major player in the bookmaking market not only in Ukraine, but also abroad, foreign investors observe this case very carefully. The manner in which sanctions against PM were introduced in March raised many questions among foreign gambling companies with an eye for the Ukrainian market. A transparent, public and, most importantly, legally justified solution to this issue will send the right signals to foreign investors who are considering entering the Ukrainian market.