On Thursday, the Federal Revenue Service initiated Operation Conto da Sorte, collaborating with state Public Prosecutors’ offices to unveil an illegal betting operation involving 37 companies and a financial turnover estimated at BRL50 billion ($9.7 billion). This information was confirmed by the Minister of Finance, Dario Durigan, who emphasized the government's zero tolerance for illegal betting activities.
During the operation, 14 search and seizure warrants were executed across Pernambuco, Ceará, and São Paulo. The primary objective was to collect documents and electronic media to assess the companies involved. The court has also mandated the freezing of assets up to BRL145 million, which may be used to cover damages linked to the illegal operations.
Investigations suggest that the network utilized shell companies and 'front men' in their operations. Officials discovered that the group established numerous businesses related to gambling, betting, and payment processing, many of which were transferred to third parties lacking the necessary economic capacity to function effectively. Some of these individuals had even received emergency aid while real financial control remained with the leaders of the scheme. Additionally, some companies reportedly existed only on paper, functioning solely as conduits for banking transactions.
The investigation uncovered activities such as money laundering, tax evasion, illicit property acquisitions, and non-compliance with net betting revenue transfers, as mandated by gaming regulations.
The operation traced the fraud's origins to irregular accreditation by the Bodó (RN) City Hall, which established the LOTSERIDÓ autonomous agency that began improperly accrediting betting companies. Even after the agency's closure, these companies continued operating without authorization from the responsible regulatory body, the SPA. The Supreme Federal Court later affirmed that municipalities lack the authority to sanction gambling and betting operations.
Dario Durigan reiterated that this operation is part of the government's commitment to combat illegal betting. He noted strengthened collaboration with the Public Prosecutor's offices to enhance the enforcement of laws against such activities.
The Federal Revenue Service of Brazil affirmed its ongoing commitment to combat fraud involving shell companies, tax evasion, and tax non-compliance. Operation Conto da Sorte represents one of the most significant actions taken against illegal betting in the country, exposing a complex scheme with extensive national implications and a detrimental effect on public finances.
