The Brazilian Ministry of Finance has mandated the immediate suspension of operations at Pixbet, a sports betting firm situated in Paraíba. This precautionary action also entails canceling all ongoing bets and ensuring that wagered funds are returned to users.
This decision forms part of Operation Arena, which was initiated on Thursday by a coalition of federal authorities, including the police, the Public Prosecutor's office, the Ministry of Finance, and the Federal Revenue Service. The operation is aimed at investigating the business group for alleged currency evasion and money laundering related to its sports betting activities.
On Thursday, Ernildo Júnior, the owner of Pixbet, was approached by federal police in Campina Grande. During a search and seizure operation, both his vehicle and cellphone were confiscated.
A representative from G1 reached out to Pixbet’s legal team, which expressed surprise over the suspension, stating they were unaware of the order enabling the operation. They indicated that they would make further comments once they had a chance to review the decision.
The Ministry of Finance cited non-compliance with regulations from the Secretariat of Prizes and Bets (SPA) as a key reason for the suspension. The ministry’s precautionary measure alleges that Pixbet did not meet necessary standards for monitoring and supervising betting operations, nor did it implement systems to track compulsive gambling.
The SPA’s declaration indicated that Pixbet failed to provide essential information required by the authority. The company operates under the domains "pix.bet.br", "ganhei.bet.br", and "betdasorte.bet.br".
SPA noted, "The precautionary measure was taken due to the high risk of harm to bettors and the regulated market." As a result, the tax authorities have mandated the halt of operations for websites associated with Pixbet, allowing the company to resume only after submitting the required information and demonstrating compliance with regulations.
It is important to note that this recent suspension is distinct from Operation Arena, which is also investigating Pixbet on accusations of laundering money through cryptocurrencies and offshore firms. This operation was also executed on Thursday, with SPA stating that its sanctioning processes against Pixbet had already been in progress prior to the launch of Operation Arena.
The decision requires cancellation of all pending bets, with the amount wagered to be refunded to users. Furthermore, a daily penalty of BRL200,000 has been established for any non-compliance with the suspension order. Despite this suspension, Pixbet retains the ability to operate in Rio de Janeiro and Paraná, where it holds local licenses.
Operation Arena aims to uncover a business network suspected of utilizing foreign corporate and financial frameworks to obscure the origins and destinations of money acquired through gambling. A total of 19 search and seizure warrants have been executed in states including Paraíba, São Paulo, Sergipe, Rio de Janeiro, and Paraná, as well as measures to break banking and telecom secrecy, with possible asset seizures amounting to BRL1.1 billion.
In Paraíba, the headquarters of Pixbet in Campina Grande was subject to one of the search operations, along with the home of an individual identified as a "front man" for the overarching group. The individuals under investigation could face charges of currency evasion, money laundering, and other financial system discrepancies.
