NSX Group, the owner of Betnacional, is currently facing a tax evasion investigation in Brazil. This probe, spearheaded by the Federal Revenue Service and the Federal Public Prosecutor’s Office (MPF) through the Special Action Group for Combatting Organised Crime, commenced with the launch of Operation Shadow Game on Friday.
Under judicial directives, six search and seizure warrants were executed in the cities of João Pessoa, Recife, and São Paulo. The operation brought together a team of 28 officials from the Federal Revenue Service, including tax auditors and analysts, assisted by 10 federal prosecutors, law enforcement officers from the MPF, as well as forensic experts.
The investigation is centered on NSX Group and focuses on alleged tax and financial irregularities that transpired both before and after the betting sector's regulation in Brazil. The group’s betting services reportedly managed over BRL5 billion (approximately $964.2 million) in 2025 alone. NSX Group was partially acquired by Flutter, which secured a 56% stake in the company last year.
Evidence gathered so far suggests that the suspected parties set up a shell company in Curaçao to misrepresent the location of their operations, claiming they were based abroad prior to Brazil’s betting regulations. However, investigations indicated that NSX’s domestic entities were actually managing operations within Brazil.
Additionally, authorities detected the utilization of payment institutions and structured financial transactions to transfer funds between Brazil and foreign accounts. These funds later re-entered the country disguised as payments for services. Tax authorities view this as a potential scheme to legitimize the repatriation of previously exported funds.
The investigation unveiled probable involvement of shell accounts held at fintech companies to obscure the fund movement and the identification of their final beneficiaries. Despite NSX Group having received authorization to operate in the betting sector in 2025, there are indications that it conducted business without proper authorization prior to that date, evading applicable taxes.
Investigators are also probing whether the financing for the licensing fee was generated from activities before the sector’s regulation. Evidence points to certain existing structures being modified to facilitate ongoing tax evasion tactics.
The investigation encompasses alleged reporting of fraudulent expenses to the tax authorities, with the Federal Revenue Service anticipating significant implications for tax revenues from 2025 onwards.
This marks the second significant operation by the Federal Revenue Service and the MPF aimed at addressing tax and financial misconduct within online betting companies. Earlier, on August 13, Operation Arena executed 17 search and seizure warrants across five states targeting Pixbet, with asset seizures up to BRL1 billion authorized by courts.
This joint operation between law enforcement and taxation authorities aims to combat tax evasion, illicit capital outflow, and money laundering in a sector that has rapidly expanded in recent years. In conjunction with the execution of court orders, the Federal Revenue Service has initiated 11 tax audit proceedings to further scrutinize the confirmed irregularities. The authority projects a potential recovery of around BRL300 million for the public treasury.
As the investigation proceeds, authorities will closely scrutinize both domestic and international financial flows connected to the company, seeking to establish the origins of the involved funds, detect any unreported revenues, and identify transaction beneficiaries.
Currently, no arrest warrants have been issued against NSX Group executives related to Operation Shadow Game.
In response, NSX Group has confirmed the ongoing investigation in a statement released Friday morning. They indicated that the company had received a request from the Federal Revenue Service regarding the MPF investigation.
The company stated, "Our lawyers have not yet had access to the investigation files, and for this reason, we cannot comment on its content at this time. We will fully cooperate with the relevant authorities and remain available to provide all necessary clarifications, having already submitted the requested documents and information. Throughout our operations in Brazil, we follow applicable laws and regulations and uphold strong governance structures, internal controls, and compliance aligned with the international standards of Flutter Entertainment, listed on the NYSE and operating in over 100 countries. We respect due process and will continue to provide clarifications through the appropriate institutional channels."
