NSX Group, the parent company of Betnacional, is currently under investigation in Brazil for allegations of tax evasion, currency evasion, and money laundering. On Friday, the Federal Revenue Service and the Federal Public Prosecutor's Office (MPF) initiated Operation Shadow Game, which specifically targets the Flutter-owned company.
As part of this operation, six search and seizure warrants were executed in major cities including João Pessoa, Recife, and São Paulo. The operation enlisted the help of 28 officials from the Federal Revenue Service, including tax auditors and analysts, in addition to 10 federal prosecutors, MPF police officers, and experts from the Secretariat for Forensics, Research, and Analysis.
Operation Shadow Game aims to uncover alleged tax and financial irregularities associated with NSX Group that are said to have occurred both before and after the establishment of regulations in the betting sector. Reports indicate that the group handled around BRL5 billion (approximately $964.2 million) in 2025 alone, and Flutter finalized its acquisition of a 56% stake in NSX last year.
Investigative findings suggest that those under scrutiny may have established a shell company in Curaçao to create an illusion that their operations were conducted outside of Brazil prior to the regulation of the industry. However, evidence indicates that domestic firms tied to NSX were actually managing operations within Brazil.
Additionally, the investigation has revealed potential involvement of payment institutions and structured financial transactions intended to transfer funds between Brazil and foreign locations. Some of these funds reportedly returned to Brazil as payments for services, which tax authorities view as a scheme to rationalize the repatriation of previously transferred funds.
Further scrutiny indicates the possible use of shell accounts at fintech companies to obscure the flow of money and complicate the identification of the actual beneficiaries.
Despite NSX Group receiving authorization to operate in the betting sector in 2025, indications suggest that it may have conducted business in Brazil prior to receiving this approval, potentially avoiding applicable tax obligations. Investigators are currently assessing whether the funds utilized to pay for the licensing fee were derived from activities that occurred before the sector's regulation.
The operation also investigates the reporting of allegedly fictitious expenses to tax authorities, with the Federal Revenue Service predicting a significant impact from the improper tax reductions from 2025 onward.
This marks the second such operation by the Federal Revenue Service and the MPF aimed at addressing tax and financial irregularities within online betting firms. On August 13, Operation Arena executed 17 search and seizure warrants across five states, seizing assets and funds valued at up to BRL1 billion from the operator Pixbet.
Both operations form part of a collaborative effort by law enforcement and tax authorities to combat tax evasion, illicit capital movement, and money laundering in one of the fastest-growing sectors in recent years. Alongside the execution of court-ordered measures, the Federal Revenue Service has launched 11 tax audit investigations to delve deeper into the identified irregularities, estimating a potential recovery of around BRL300 million for public coffers.
As the inquiry progresses, authorities will investigate both domestic and international financial transactions involving NSX to assess the origins of these funds, uncover any unreported income, and identify the key parties benefitting from the transactions scrutinized.
At this stage, no arrest warrants have been issued for NSX executives in relation to Operation Shadow Game.
In response to the investigation, NSX Group publicly acknowledged the situation. In a statement released Friday morning, the company confirmed that it had received a request from the Federal Revenue Service regarding the ongoing investigation. The company's lawyers have yet to access the investigation files, preventing them from commenting on the specifics of the inquiry.
