NSX Group, the parent company of Betnacional, is currently being probed in Brazil over suspicions of tax evasion, currency evasion, and money laundering. This investigation was initiated on Friday by the Federal Revenue Service and the Federal Public Prosecutor’s Office (MPF) through Operation Shadow Game, which aims to scrutinize the activities of the Flutter-owned group.
As part of the operation, authorities executed six search and seizure warrants in the cities of João Pessoa, Recife, and São Paulo. This effort involved 28 officials from the Federal Revenue Service, including tax auditors and analysts, alongside 10 federal prosecutors, MPF police officers, and forensic experts.
The focus of Operation Shadow Game is on alleged tax and financial irregularities linked to the NSX group, which reportedly facilitated over BRL5 billion ($964.2 million) in transactions in 2025 alone. Flutter had acquired a 56% stake in NSX Group the previous year.
Investigators allege that the subjects involved set up a shell company in Curaçao to create the perception that their operations were based outside Brazil prior to regulatory changes. However, they found that domestic firms tied to the group were actually managing its Brazilian operations.
The available evidence also suggests that multiple payment institutions and structured financial transactions were employed to shift funds both to and from Brazil. Reports indicate that some of these funds returned to Brazil as payments for services, a practice that tax authorities suspect was intended to legitimize the return of previously transferred money.
Additionally, the investigation uncovered possible use of shell accounts with fintech companies, which may have obstructed fund tracking and the identification of the true beneficiaries.
Despite receiving authorization to operate in the betting sector in 2025, evidence points to prior unapproved activities within Brazil that lacked proper tax payments. Authorities are examining whether the funds for the licensing fee were sourced from operations that predated the regulation.
There are indications that existing structures were repurposed to continue facilitating tax evasion activities. Part of the ongoing investigation includes scrutinizing claims of fictitious expenses submitted to tax authorities. The Federal Revenue Service is concerned about the potential impacts on tax revenues starting from 2025.
This investigation represents the second significant action within a month by the Federal Revenue Service and the MPF against online betting companies for financial misconduct. Earlier, on August 13, Operation Arena executed 17 search and seizure warrants across five states, targeting Pixbet and resulting in asset seizures amounting to BRL1 billion.
The current investigation not only looks to thwart tax evasion and illicit capital flight but also aims to uncover the intricacies of financial transactions associated with one of Brazil's burgeoning economic sectors. Beyond enforcing court orders, the Federal Revenue Service has initiated 11 tax audit processes to probe the suspected irregularities further, projecting a possible recovery of around BRL300 million for the public treasury.
As the investigation unfolds, authorities will continue to scrutinize both domestic and international financial inflows to assess the origin and legitimacy of the involved funds and determine any unreported revenue and the beneficiaries behind the transactions.
At this point, no arrest warrants have been issued for NSX executives linked to Operation Shadow Game.
In response to the investigation, NSX Group publicly acknowledged it on Friday morning, stating, "NSX Brasil confirms that it received, this Friday morning (28), at its office in Recife, a request from the Federal Revenue Service, within the scope of an investigation conducted by the Federal Public Prosecutor’s Office (MPF)." The company added that its legal team has yet to access the investigation files, limiting their ability to comment further.
They asserted their commitment to full cooperation with authorities and confirmed that they had already provided requested documents and information. Additionally, NSX emphasized its adherence to legal and regulatory standards, maintaining governance structures and compliance efforts in line with Flutter Entertainment’s global practices, which operates in over 100 countries and is listed on the New York Stock Exchange (NYSE). The company affirmed its respect for due process and pledged to continue cooperation through appropriate institutional channels.
