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Parimatch – Parimach suspended all its operations in Ukraine following sanctions imposed by the country’s government. For those who partnered with the Ukrainian betting company, this is another frequent blow amid the ongoing war.
PariMatch Ukraine announced on March 12 that it had suspended operations and closed its platform after being placed on a sanctions list issued two days earlier by the country’s president, Volodymyr Zelensky.
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Parimach was among 287 companies sanctioned by Ukraine’s National Security and Defense Council over the Russian invasion. As a result, the host company is banned from doing business in the country for the next 50 years. All business partnerships are suspended, employees are laid off.
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“These are more than 280 companies and 120 people who worked against Ukraine through gambling business schemes, siphoned money from our state and financed various Russian schemes,” Zelenskyy said in a statement.
The news surprised many in Ukraine because Parimach condemned the war. In March 2022, a week after the start of the invasion, Parimatch Tech – the company that developed the platform and marketing solutions for the Parimatch brand, which changed its name to GR8 Tech in January – withdrew the franchise from Russia. In the same month, he doubled financial aid to Ukraine to $2 million and condemned Russia as the “aggressor” of the war.
Parimatch, founded in Kyiv, but currently based in Cyprus, operates internationally in several countries. It partners with a number of football clubs including Premier League quartet Chelsea, Leicester City, Newcastle and Aston Villa, as well as a number of esports organizations including Team Secret and 00 Nation.
For less than two weeks, B8 Esports also agreed with Parimatch. The Ukrainian organization, founded in 2020 by Dota 2 legend Danil ‘Dendi’ Ishutin, officially added Parimatch as a partner on March 7, replacing another betting company, Esports Bet. Less than a week later, Parimatch’s logo disappeared from B8’s social media banners.
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“We planned to establish a long-term partnership with Parimatch from March 1, with the aim of promoting the development of esports in Ukraine,” said Dendy.
“However, the latest news has come as a shock to all of us. We are currently facing a financial crisis and are actively seeking funds to pay our team and partners and continue our operations.
In addition to a Dota 2 roster competing in DPC NA Division I, B8 Esports has professional teams in CS:GO and Valorant.
So far, there is no indication that Parimach’s activities outside of Ukraine would be affected by the sanctions. (Several companies across Europe own the rights to the “Parimatch” brand through franchise deals). But Chelsea, for example, are said to be reviewing their partnership with Parimatch in the wake of the sanctions.
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00 people declined to comment when contacted. Team Secret did not immediately respond to a request for comment.
But it wasn’t just B8 Esports that was stuck due to Parimatch’s sudden exit from Ukraine. Many streamers and content creators are trying to find alternative sources of income at a time when sponsorship opportunities are much more difficult to find due to the economic uncertainty affecting the world and the war going on in the country.
“Some Ukrainian esports content creators are losing most of their income,” said Oleksandr ‘petr1k’ Petryk, a CS:GO analyst and content creator with more than 230,000 YouTube subscribers. “[But] some will eventually be able to replace Parimatch with other bookmakers or sponsors.
“I’ve canceled some ambitious projects, and probably other content creators as well. No one expected or was ready for that.”
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In a statement, Parimatch Ukraine said it was seeking a legal mechanism for its clients, who are owed UAH 250 million ($6.8 million), according to Ukrainian media outlet Ukrainska Pravda.
Parimach added that there is still hope that Mr. Zelensky will review the NSDC’s decision, pointing out that taxes and license fees paid in 2023 amounted to UAH 485 million ($13.2 million).
“We ask you to verify the erroneous information in the decision of the National Security and Defense Council and to take appropriate action regarding any illegal behavior by the Security Service of Ukraine,” the host company said.
“We are ready for public debate, we are ready to answer any questions from the media and law enforcement agencies, and we are ready to defend our position in court.”
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For many Ukrainian content creators, Parimatch’s shutdown has further clouded their lives. According to petr1k, the partnership with betting companies is one of the few sources of income they have had since the start of the war.
Still, Petr1c said it’s a sacrifice he’s willing to make in the service of a greater good.
“I’m sure that most creators in Ukraine will be happy to have any projects with companies that are still connected to Russia,” he said. “Parimach denies having such connections, but the Ukrainian authorities most likely have a strong reason for implementing such sanctions.
“From a business point of view, Ukrainian esports is almost dead due to the ongoing war. It will be completely dead without bookmakers. The exception is NAVI, since they broke into the international market. Difficult times…” Parimatch suspends operations in Ukraine sanctions Parimatch international bookmaker issued an official statement ki, in which he informed that the company had suspended its operations in Ukraine and that the pm.ua website had also been blocked. Parimatch also said that their next step will be to issue refunds to their customers. The company is currently looking for a legal refund mechanism.
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Parimach LLC, in accordance with the Constitution and laws of Ukraine, as well as the Decree of the President of Ukraine 145/2023 on the Resolution of the National Security and Defense Council of Ukraine of March 10, 2023 Changes in personal special economic and other restrictive measures (sanctions) report the following: the company’s operations are suspended came, the platform is not available for customers, the pm.ua website is blocked
Parimatch said their next steps will be to issue refunds to their customers. The company is currently looking for a legal refund mechanism.
Customers can rest assured that all personal funds are safe. They have been frozen and are transferred in their entirety,
In addition, Parimatch is suspending all affiliate contracts and seeking a legal mechanism to repay all debts for services rendered.
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We understand that the shutdown of all operational processes of the company will not allow us to fulfill our obligations to the team
As previously reported by Ukrinform, Ukrainian President Volodymyr Zelenskyy implemented the NSDC’s decision of March 10, 2023 on sanctions against individuals and organizations, with a particular focus on bookmakers and lottery businesses, by Decree 145/2023.
Most of the targeted persons are Russian citizens. Others are citizens of Great Britain, Poland, the Netherlands, Turkey and Cyprus.
Sanctioned entities include Sportloto, Sportbet, Bet.Ru, Betcity, Matchbet, as well as Parimatch LLC, Parimatch Foundation, Parimatch United Investments Limited and others. Sanctions were introduced 50 years ago. Parimach has joined the fundraising platform UNITED24. The company has already provided significant financial support and is now joining the support of the media, with world sports stars.
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At the end of the year, Parimatch plans to take part in several fundraising initiatives as well as media activities with Premier League football clubs. They will also work together with the ambassador of UNITED24 and Parimatch, world champion boxer Oleksandr Usyk.
“We will use all resources to ensure that European and global society, global brands and business giants join the projects launched by UNITED24. Talking about war today is everyone’s duty, especially those who can speak to a wide global audience. Every vote counts , every project brings victory closer,
“The company Parimatch Ukraine has already supported the fundraising of First Lady Olena Zelenska and UNITED24 ambulances. We are glad that this activity has become a systematic cooperation.”
“After almost 9 months of war, fighting for the world’s attention is becoming increasingly difficult, the great media opportunities offered by Parimach Ukraine help UNITED24 speak louder and help Ukraine more effectively.”
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