NSX Group, the owner of Betnacional, is currently under investigation in Brazil for alleged tax evasion, currency evasion, and money laundering. This inquiry is being spearheaded by the Federal Revenue Service and the Federal Public Prosecutor's Office (MPF) through a special initiative named Operation Shadow Game, which commenced on Friday.
As part of the operation, law enforcement executed six search and seizure warrants in João Pessoa, Recife, and São Paulo, involving 28 officials from the Federal Revenue Service, including tax auditors and analysts. The team also included 10 federal prosecutors, police officers from the MPF, and experts from the Secretariat for Forensics, Research, and Analysis.
The focus of Operation Shadow Game is on the NSX Group, which has been identified as potentially involved in significant tax and financial irregularities before and after the regulation of Brazil’s betting sector. The group reportedly managed over BRL 5 billion (approximately $964.2 million) in revenue in 2025 alone. In the previous year, Flutter Entertainment acquired a 56% stake in NSX Group.
Evidence collected thus far indicates that the subjects of the investigation allegedly established a shell company in Curaçao to create an illusion that their operations were based outside Brazil. However, investigations suggest that domestic entities connected to NSX were actually managing its operations within the country.
Further investigations have uncovered the possible use of payment institutions and structured financial transactions to transfer funds internationally. Some of these funds later returned to Brazil labeled as payments for services. Tax authorities are examining this as a potential strategy to rationalize the repatriation of previously offshore funds.
The inquiry also points to the existence of shell accounts at fintech companies designed to obscure fund movement and conceal the true beneficiaries involved.
While NSX Group did receive authorization to operate in Brazil's betting sector in 2025, there are indications that it may have conducted business in the country earlier without the necessary authorization or tax payments. Investigators aim to determine if the funds used for licensing fees stemmed from activities before regulations took effect.
Operation Shadow Game also investigates claims of fictitious expenses reported to tax authorities. The Federal Revenue Service is concerned about the potential impact of these actions on tax liabilities beginning in 2025.
This marks the second major crackdown by the Federal Revenue Service and the MPF targeting financial misconduct among online betting operators. Previously, on August 13, Operation Arena resulted in 17 search and seizure warrants across five states concerning Pixbet, with assets worth up to BRL 1 billion targeted.
Both operations are part of a concerted effort by tax and law enforcement agencies to combat practices such as tax evasion, illegal capital flight, and money laundering, especially within the rapidly expanding online betting sector. In addition to the operational measures taken, 11 tax audit proceedings have been opened to further investigate irregularities. The Federal Revenue Service estimates the potential recovery of around BRL 300 million for public funds through these efforts.
As investigations proceed, authorities will be scrutinizing financial flows related to NSX Group to determine the origins of the funds involved, uncover unreported revenue, and identify beneficiaries connected to these transactions. At this stage, no arrest warrants have been issued for executives of NSX Group in relation to Operation Shadow Game.
In response to the situation, NSX Group, which operates under Flutter Entertainment, publicly acknowledged the investigation. In a statement, the company confirmed it received an inquiry from the Federal Revenue Service on Friday.
The statement noted that the company’s legal team had not accessed investigation files, making it difficult to comment in detail about the content of the inquiry. However, they emphasized their commitment to cooperating fully with authorities, stating that they had already provided requested documents and information.
NSX Group expressed confidence in its compliance with Brazilian laws and regulations, asserting that it has maintained strong governance and compliance structures in line with international standards set by Flutter Entertainment, a global entity publicly traded on the New York Stock Exchange (NYSE) and operating in over 100 countries. They reaffirmed their respect for due process and committed to providing clarifications through appropriate institutional channels as necessary.
