The Brazilian Federal Revenue Service has executed a nationwide operation exposing a vast unlicensed betting scheme with an estimated turnover of BRL50 billion (approximately $9.7 billion). Operation Conto da Sorte, conducted in collaboration with state Public Prosecutors’ offices, targeted 37 companies and led to significant asset freezes and multiple search and seizure actions.
Government Response and Asset Seizures
Minister of Finance Dario Durigan confirmed the operation’s details, emphasizing the government’s strict stance against unauthorized betting activities. Authorities carried out 14 search and seizure warrants across Pernambuco, Ceará, and São Paulo to collect evidence and assess the companies’ actual operations. The courts authorized freezing up to BRL145 million in assets, which may be used to offset damages linked to the network’s activities.
Structure and Modus Operandi of the Betting Network
Investigators discovered that the group created dozens of interconnected companies in the betting, gambling, and payment processing sectors. Many of these entities were registered under third parties who lacked the financial capacity to operate such businesses, with some individuals reportedly receiving government emergency assistance. Despite formal ownership transfers, the network’s leaders retained financial control.
Several of the companies identified were found to exist only on paper and served primarily to facilitate financial transactions. Authorities reported evidence of money laundering, tax evasion, acquisition of real estate with non-compliant funds, and failures to transfer net betting revenue as required by sector regulations.
Role of Local Accreditation and Regulatory Gaps
The operation highlighted regulatory loopholes that the network exploited. The scheme gained traction after the Bodó City Hall in Rio Grande do Norte established the LOTSERIDÓ autonomous agency, which irregularly accredited betting companies. Even after the agency’s closure, these businesses continued to operate without proper authorization from Brazil’s Secretariat of Prizes and Betting (SPA). The matter escalated to the Supreme Federal Court, which ruled that municipal governments do not have the authority to authorize gambling and betting operations.
For more information, the official statement from the Federal Revenue Service can be found on the Receita Federal website.
Impact on Brazil’s Betting Sector
According to Dario Durigan, Operation Conto da Sorte demonstrates Brazil’s enhanced coordination between federal and state agencies to combat unauthorized gambling. The Federal Revenue Service reiterated its commitment to addressing fraud, shell companies, and tax evasion in the gaming sector.
This operation marks one of the most significant actions against unlicensed betting in Brazil to date, highlighting the ongoing regulatory challenges and the national impact of such schemes on public finances.