The Brazilian Ministry of Finance has ordered an immediate halt to operations at Pixbet, a sports betting firm registered in Paraíba. This precautionary measure includes the cancellation of all ongoing bets and mandates the return of wagered sums to users.
This decision arises from Operation Arena, a joint operation initiated by the federal police, the Public Prosecutor’s office, the Ministry of Finance, and the Federal Revenue Service on Thursday. The investigation focuses on the business group for alleged currency evasion and money laundering activities related to sports betting.
Ernildo Júnior, the owner of Pixbet, was approached by federal police in Campina Grande on Thursday. During the execution of a search and seizure warrant, authorities confiscated his vehicle and cell phone.
In response to inquiries from G1, Pixbet's legal team expressed surprise at the operation, claiming they had not received the order authorizing it, and would comment further once they had the decision in hand.
The Ministry of Finance's precautionary measure notes that Pixbet has not adhered to the necessary standards for monitoring and supervising betting companies. The company lacks systems to track compulsive gamblers and has failed to provide crucial information required by the Secretariat of Prizes and Bets (SPA). Pixbet manages the domains "pix.bet.br", "ganhei.bet.br", and "betdasorte.bet.br".
According to SPA, the measure was prompted by significant risks to bettors and the integrity of the regulated market. As stipulated, operations of related websites must be suspended, and Pixbet may only resume once it has submitted the necessary information and demonstrated compliance with regulations.
Notably, this suspension is not directly connected to Operation Arena, which investigates Pixbet for allegations involving money laundering connected to cryptocurrency and offshore entities. That operation also unfolded on the same day, with the SPA indicating that sanctioning processes had commenced well before this particular operation.
The decision entails the cancellation of all current bets, with a requirement for refunds to bettors. Additionally, a daily penalty of BRL200,000 has been imposed if Pixbet does not comply with the suspension order. Despite this, the company retains the capacity to operate in Rio de Janeiro and Paraná, where it holds respective local licenses.
Operation Arena itself aims to unravel a business group accused of employing international corporate and financial frameworks to hide the source and allocation of funds acquired through gambling and sports betting. The operation executed a total of 19 search and seizure warrants in regions including Paraíba, São Paulo, Sergipe, Rio de Janeiro, and Paraná. There have also been requests to lift bank and telecommunications confidentiality, aiding in the seizure of up to BRL1.1 billion. Among the targets was the Pixbet headquarters in Campina Grande, as well as the home of an individual identified as a "front man" for the group.
Individuals involved in this probe may face charges related to currency evasion, money laundering, and other offenses against Brazil's financial legislation.
