Brazilian authorities have launched a major investigation into NSX Group, the operator behind Betnacional, over suspected tax evasion, illegal cross-border transfers and money laundering linked to its betting activities.
The Federal Revenue Service and the Federal Public Prosecutor’s Office (MPF) opened Operation Jogo de Sombras, or “Shadow Game,” on 28 August. The investigation is being conducted with the MPF’s organised crime unit and focuses on alleged financial structures used by the group both before and after Brazil introduced its regulated online betting market.
Court-approved searches were carried out at six locations across João Pessoa, Recife and São Paulo. The operation involved 28 Federal Revenue officials, including tax auditors and analysts, alongside federal prosecutors, police personnel and forensic specialists. Authorities were also authorised to seize assets and funds.
Authorities examine more than BRL5bn in betting activity
Investigators said companies linked to the group handled more than BRL5 billion in betting-related financial activity during 2025.
The Federal Revenue Service is examining whether NSX and related companies used corporate and payment structures to conceal taxable revenue and move money between Brazil and overseas jurisdictions.
One line of inquiry concerns a company established in Curaçao before Brazil’s regulated betting framework came into force. Authorities suspect the entity may have been used to create the impression that betting operations were being conducted abroad even though companies and staff based in Brazil were allegedly responsible for significant parts of the business.
Investigators are also examining structured financial transfers through payment providers. According to authorities, some money sent outside Brazil may later have returned to the country as payments for services, potentially providing a commercial explanation for funds that had previously been transferred abroad.
Fintech accounts are another focus of the investigation. Officials suspect that accounts held through financial technology companies may have been used to make transactions harder to trace and to obscure the identities of their ultimate beneficiaries.
Pre-regulation operations under scrutiny
Brazil formally launched its regulated national online betting market on 1 January 2025. Investigators are assessing whether betting activity connected to the NSX structure had already been conducted domestically before that date without the required authorisation or payment of applicable taxes.
Authorities are also reviewing the source of funds used to pay regulatory licensing costs and whether any of that money originated from betting activity conducted before the regulated market began.
Another area under investigation involves expenses declared for tax purposes. The Federal Revenue Service suspects that some costs may have been improperly recorded, reducing taxes payable from 2025 onwards.
Eleven separate tax audit procedures have now been opened as part of the wider inquiry. Federal tax authorities estimate that approximately BRL300 million could potentially be recovered for the public treasury if the suspected irregularities are confirmed.
No arrest warrants have been issued against NSX executives in connection with the investigation.
Flutter became majority owner in 2025
NSX is part of Flutter Entertainment’s Brazilian operations. Flutter completed the acquisition of an initial 56% interest in NSX on 14 May 2025.
The transaction included approximately $350 million in cash and the contribution of Flutter’s existing Betfair Brazil business, creating a combined operation centred on brands including Betnacional and Betfair. Flutter also secured mechanisms allowing it to increase its ownership stake in later years.
When the deal was originally announced, Flutter described NSX as one of Brazil’s leading operators and said the acquisition was intended to strengthen its position in the newly regulated Brazilian market.
The current investigation comes shortly after another large enforcement action against Brazil’s betting industry. On 13 August, authorities carried out Operation Arena, which included 17 search and seizure warrants across five states and a court-authorised asset seizure of up to BRL1 billion in an investigation involving Pixbet.
NSX says it is cooperating
NSX Brasil confirmed that Federal Revenue officials contacted its Recife office on 28 August and requested information connected to the MPF investigation.
The company said its lawyers had not yet been given access to the full case files when the operation began, preventing it from commenting on the specific allegations.
NSX nevertheless said it had already supplied requested documents and information and would continue cooperating with authorities. The company maintains that its Brazilian activities comply with applicable legislation and says its governance, internal controls and compliance systems follow standards used across Flutter Entertainment.
The investigation remains active, with authorities expected to continue reviewing domestic and international financial flows, possible undeclared revenue, the origin of funds and the beneficiaries behind the transactions under examination.