The Brazilian Federal Revenue Service launched Operation Conto da Sorte on Thursday to investigate a BRL50 billion illegal betting network. The joint action with state prosecutors targets 37 companies operating across Pernambuco, Ceará, and São Paulo.
Investigators identified a financial movement of approximately $9.7 billion within the network. Authorities executed 14 search and seizure warrants to verify company structures and collect documentation. The court ordered the freezing of assets valued at up to BRL145 million to cover potential damages.
Shell Companies and Regulatory Violations
The scheme relied on shell companies and front men, some of whom received emergency aid while lacking economic capacity. Financial control remained with the scheme leaders, while entities served as mules for banking transactions. The irregularities originated in Bodó, where the local LOTSERIDÓ agency accredited betting firms without legal authority.
The Supreme Federal Court previously confirmed that municipalities cannot authorize gambling operations.
Minister of Finance Dario Durigan confirmed the operation reflects a zero-tolerance policy against unauthorized betting. The government plans to strengthen partnerships with Public Prosecutor’s offices to increase enforcement rigor. Federal Revenue Service officials stated they will continue targeting tax evasion and failure to transfer net betting revenue.