NSX Group, the owner of Betnacional, is currently facing scrutiny in Brazil as authorities investigate alleged tax evasion, currency evasion, and money laundering activities. The Federal Revenue Service, in collaboration with the Federal Public Prosecutor's Office (MPF) and its Special Action Group for Combatting Organised Crime, initiated Operation Shadow Game on Friday to examine these claims.
As part of this operation, six search and seizure warrants were executed in major cities including João Pessoa, Recife, and São Paulo. The operation involved 28 officers from the Federal Revenue Service, including tax auditors and analysts, along with 10 federal prosecutors, MPF police officers, and specialists from the Secretariat for Forensics, Research and Analysis.
Investigation efforts have revealed potential tax and financial irregularities involving the NSX Group, dating both before and after the regulation of the betting sector. The group reportedly provided betting services that generated over BRL5 billion (around $964.2 million) in 2025, adding scrutiny to its operations. Flutter Entertainment acquired a 56% stake in NSX Group last year.
Evidence indicates that individuals involved set up a shell company in Curaçao to create the appearance that their operations were offshore, which allegedly occurred before regulations were enacted. However, investigations suggest that domestic companies associated with NSX were actually running the operations in Brazil.
The inquiry has also pointed to the use of payment institutions and structured financial transactions to transfer funds between Brazil and abroad. Some of these funds are believed to have been later repatriated as payments for services, a tactic viewed by tax authorities as a method to legitimize previously sent overseas funds.
Additionally, investigators are examining potential shell accounts at fintech companies designed to obscure the tracing of funds and the identification of ultimate beneficiaries.
Although the NSX Group received authorization to operate in Brazil in 2025, investigations suggest that activities may have been ongoing without authorization and without meeting tax obligations prior to that. Authorities are also probing whether the funds used to pay licensing fees stemmed from operations predating regulatory approval.
Among the numerous points of investigation, the reporting of allegedly fictitious expenses to tax authorities stands out, with the Federal Revenue Service foreseeing a potential impact on tax reductions due from 2025 onward.
This operation marks the second significant action taken by the Federal Revenue Service and the MPF against tax and financial irregularities in the online betting industry. Earlier, on August 13, Operation Arena was launched, executing 17 search and seizure warrants across five states, targeting the operator Pixbet and seizing assets and funds totaling up to BRL1 billion.
The ongoing investigations aim to curb tax evasion, illicit capital flight, and money laundering in this rapidly expanding sector. Alongside the execution of court orders, the Federal Revenue Service has commenced 11 tax audit proceedings to further probe the identified irregularities, estimating potential recoveries of around BRL300 million for the public treasury.
The authorities are committed to closely examining both domestic and international financial transactions linked to NSX, assessing the origins of the funds involved, tracing unreported revenue, and identifying transaction beneficiaries.
So far, there have been no arrest warrants issued against NSX executives connected to Operation Shadow Game.
In response to the investigation, NSX Group confirmed the receipt of a request from the Federal Revenue Service today, stating, "The company’s lawyers have not yet had access to the investigation files and, for this reason, it is not possible to comment on its content at this time."
The company emphasized its commitment to cooperating fully with authorities and mentioned that it had already submitted the required documents and information. “Throughout its operations in the country, the company conducts its business in accordance with applicable laws and regulations and maintains robust governance structures,” it stated, referencing its compliance with international standards as part of Flutter Entertainment, which is listed on the New York Stock Exchange and operates in more than 100 countries. The group expressed respect for due process and intends to continue providing necessary clarifications through appropriate channels.
