Dragon Money: unlicensed casino, link to the Rada and p2p scheme for tax dodging
Reporters from a prominent nationwide channel carried out a singular probe into Ukraine’s iGaming sector.
During the investigation, it became apparent that several entities in this domain are operating without proper authorization («under the table»), relying on backing from influential figures within law enforcement and legislative representatives. As of December 10, 2024, the Gambling and Lottery Regulation Commission (CRAIL) has granted 28 licenses, some of which have since been invalidated.
(CRAIL permits issued in 2024)
Dragon Money is one such instance. Casino Dragon, through skillful distribution of kickbacks, established a headquarters in Kyiv, employing over 50 individuals registered as self-employed entrepreneurs. This headquarters is overseen by senior management recruited in late 2023, during the peak of the Special Military Operation.
Lobbying for the company is handled by former parliamentary member Alexander Mirny, regarded as a benefactor of the Ukrainian gaming industry. He orchestrated the framework for payment acceptance on the online platform and acts as a liaison with policing bodies.
(Alexander Mirny on the podium of the Verkhovna Rada)
The investigative piece unveils the mechanics of the payment system market, the company’s broad recruitment of Ukrainian staff, and the methods employed to minimize tax obligations. In the subsequent installment, journalists posing as prospective employees discovered substantial insights into Dragon Money’s hiring practices and tax avoidance strategies. The journalists also sought comments from the lawmaker, Mirny, who acknowledged familiarity with the company’s proprietors but disclaimed any business dealings in Ukraine.
The deposit amount is further converted into rubles. After providing information regarding the deposit amount and selecting a payment option (hryvnia, cryptocurrency). All mainstream banks are accessible for funding – PrivatBank, A-Bank, MonoBank.
Once the user selects the card method for topping up the balance, the payment platform’s page appears, presenting the card details for completing the transaction.
This mechanism in the wagering sector is known as p2p payment. Following a transfer to the provided card, the funds are applied to the player’s individual account.
A relevant inquiry for law enforcement: how can an entity that specializes in tax reduction establish an office and operate unhindered in Ukraine? To whom and in what sum does Dragon Money compensate for such overt and assured operations? Furthermore, based on confidential sources, the company has filed for licensing within the Ukrainian market.
