Joker Regains Valid License in Court Decision.
Breaking Down the Court's Decision on Joker Casino's License
In the sheer chaos of the final months of last year, the Commission for the Regulation of Gambling and Lotteries (KRAIL) made a move to slice the gambling pie of operators controlled by Russian residents, pulling the licenses of three companies: Joker Casino, FAN SPORT, and GOLD CUP. Here's the lowdown on this tumultuous legal squabble.
The Unraveling of Joker Casino
LLC "JOKER YA" (Joker Casino) found itself in a pickle, losing its license for online casino operations, while LLC "PLAY FAN INVESTMENT" (FAN SPORT) was left in the lurch with annulled licenses for both online casino and bookmaking activities. LLC "ALPHAGEYM" (GOLD CUP) bid farewell to its online casino operations permit, too.
Joker Casino didn't waste a moment, dashing off a lawsuit soon after, calling foul on the decision. The lawsuit hinged on the argument that KRAIL's decision was based on spurious Security Service of Ukraine letters devoid of supporting evidence. Furthermore, Joker Casino's lawyers underscored that KRAIL had no substantiated documentation indicating control over the company by Russian residents. To add insult to injury, the plaintiff claimed that the license revocation was executed without a proper inspection of licensee activities, a clear violation of legislative norms.
KRAIL retorted that the decision was predicated on false information discovered in the license application documents and established facts of control by residents of states at war with Ukraine.
Examining the Evidence
Upon scrutinizing all the docs from LLC "JOKER YA", the court deemed that, at the time of the license application submission on April 13, 2021, the lone ultimate beneficial owner of LLC JOKER.YA was a citizen of the Republic of Latvia, Egons Daniels, who wielded decisive influence over LLC JOKER.YA (100%) via a control/ownership chain in legal entities.
Concerning the evidence of control over LLC "JOKER YA" by Russian residents, it was contained in an SBU letter that KRAIL didn't provide to the court due to confidentiality restrictions. As a result, the information in the letter could not serve as evidence. The second SBU letter, supplied to the court, was found to lack sufficient evidence.
The Court's Verdict: A Legal Mishmash
The court concluded that the letter is an internal, unofficial document bereft of any normative-legal instructions and failing to generate any legal basis for license cancellation, given that the supporting evidence was absent. Such evidence was not presented by KRAIL to the court.
Noteworthy Procedural Actions: A Dance of Denials and a Swift Replacement
The court refused KRAIL's request for a joint hearing of both parties, with Joker Casino twice denied the option of recusing Judge Voytovich I.I., until Judge Voytovich submitted a self-recusal application independently. The newly appointed Judge Leonovich A.M. promptly issued a ruling on the case according to the rules of simplified claim procedure.
The Final Verdict: Licensing Limbo and Dual Website Operations
The court decided to recognize KRAIL's Decision No. 435 of December 13, 2022, "On the Cancellation of LLC "JOKER.YU.A." License for Organizing and Conducting Internet Casino Games" as illegal and nullified it. Once the appeals period for all parties has elapsed, with no appeals filed, the decision will take effect.
With KRAIL having 30 days to file an appeal, Joker Casino continues to hawk its wares through two unauthorized websites operating in Ukraine, both in Russian.
Maria Polyanskaya | Author
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- What is unclear is how the court viewed casino-and-gambling activities in relation to the control of LLC "JOKER YA" by residents of states at war with Ukraine, as evidenced by the court's ruling that the Security Service of Ukraine letter lacked a normative-legal basis for license cancellation.
- Despite losing its license for online casino-games operations, Joker Casino continues to operate two unauthorized casino-culture websites in Ukraine, challenging the authority of the Commission for the Regulation of Gambling and Lotteries (KRAIL).
