On Thursday, the Federal Revenue Service initiated Operation Conto da Sorte, collaborating with state Public Prosecutors' offices to uncover an illegal betting operation involving 37 companies and an estimated financial flow of BRL 50 billion ($9.7 billion). Minister of Finance Dario Durigan confirmed the details, emphasizing a strict stance against illegal betting practices.
As part of the operation, 14 search and seizure warrants were executed across Pernambuco, Ceará, and São Paulo. The focus was on gathering documents and media and assessing the actual operations of the companies involved. Additionally, a court order was issued to freeze assets amounting to BRL 145 million, which may be used to address damages from the illicit activities.
Investigations revealed that the scheme operated through shell companies and 'front men.' The group established numerous companies related to gambling, betting, and payment processing. Many of these companies were transferred to individuals lacking the financial capability to run them, some of whom were beneficiaries of emergency aid while actual control remained with the scheme's leaders. Some entities did not even exist physically, functioning solely as conduits for banking transactions. Authorities have identified various illegal activities, including money laundering, tax evasion, acquisition of real estate with illicit funds, and failure to transfer net betting revenue, as mandated by existing legislative regulations.
The fraud's origin can be traced back to irregular accreditation practices by the municipality of Bodó in Rio Grande do Norte, which established the LOTSERIDÓ autonomous agency to wrongly accredit betting companies. After shutting down the agency, many companies continued to operate without authorization from the Sectoral Regulatory Agency (SPA). This situation was escalated to the Supreme Federal Court, which ruled that municipalities lack the power to authorize gambling and betting operations.
Durigan reiterated that this operation is part of the government's zero-tolerance approach to illegal betting, stating the importance of robust collaborations with Public Prosecutor's offices to enhance enforcement measures. The Brazilian Federal Revenue Service also affirmed its commitment to combating fraud related to shell companies, tax evasion, and unpaid taxes.
Operation Conto da Sorte stands as a significant strike against the illegal betting sector in Brazil, exposing a complex scheme with far-reaching impacts and billions in implications for public finances.
