The Ministry of Finance has announced the immediate suspension of Pixbet, a sports betting firm located in Paraíba, as part of a broader investigation into alleged currency evasion and money laundering. This decision comes under the framework of Operation Arena, initiated by federal authorities on Thursday, which includes the federal police, the Public Prosecutor's office, the Ministry of Finance, and the Federal Revenue Service.
Alongside halting operations, the order requires the cancellation of current bets and demands that wagered amounts be refunded to users.
On Thursday, Ernildo Júnior, the owner of Pixbet, encountered federal police officers in Campina Grande, leading to the seizure of his vehicle and mobile phone as part of a search and seizure warrant execution.
Responding to the situation, Pixbet's legal representatives expressed surprise, stating that they had not seen the order that initiated this operation. They indicated they would provide comments once they had reviewed the official decision.
The precautionary measure cites Pixbet's failure to adhere to monitoring and regulation standards set for betting companies, specifically regarding the oversight of compulsive gambling. It highlights that Pixbet has not supplied necessary information requested by the Secretariat of Prizes and Bets (SPA). The company is responsible for multiple domains, including “pix.bet.br”, “ganhei.bet.br”, and “betdasorte.bet.br”.
According to the SPA, this action was prompted by concerns over significant potential harm to bettors and the integrity of the regulated market. Consequently, the tax authorities have ordered the cessation of operations for all websites associated with Pixbet, permitting a return only once the necessary information is provided and the company meets compliance requirements.
It's important to clarify that this suspension is separate from Operation Arena, which is investigating suspected money laundering activities related to cryptocurrency and offshore companies involving Pixbet. The investigation on this front also commenced on Thursday, with the SPA noting that sanctioning procedures were already in progress prior to this operation.
As part of the suspension, all ongoing bets are to be cancelled, and any amounts wagered are to be returned to the bettors. Additionally, the Ministry of Finance has stipulated a daily fine of BRL200,000 if the suspension order is not followed, although Pixbet can still operate in Rio de Janeiro and Paraná due to having local licenses.
Operation Arena focuses on a business group suspected of utilizing corporate and financial frameworks abroad to obscure the origins of capital generated from gambling and sports betting, with Pixbet among those investigated. The operation executed 19 search and seizure warrants across locations in Paraíba, São Paulo, Sergipe, Rio de Janeiro, and Paraná, and included steps to breach bank and telecommunications privacy, with assets amounting up to BRL1.1 billion targeted for seizure.
In Paraíba, the search included Pixbet’s headquarters in Campina Grande and targeted the residence of an identified associate alleged to serve as a “front man” for the group. Those involved may face serious allegations including currency evasion, money laundering, and violations of national financial regulations.
