NSX Group, the owner of Betnacional, is currently facing an investigation by Brazilian authorities over allegations of tax evasion, currency evasion, and money laundering. This inquiry was initiated on Friday through Operation Shadow Game, which is being conducted by the Federal Revenue Service and the Federal Public Prosecutor's Office (MPF), specifically the Special Action Group for Combatting Organized Crime.
As part of the operation, six search and seizure warrants have been executed in the cities of João Pessoa, Recife, and São Paulo. The enforcement action involved 28 officials from the Federal Revenue Service, including tax auditors and analysts, in addition to 10 federal prosecutors, police officers, and experts from the Secretariat for Forensics, Research and Analysis.
The focus of Operation Shadow Game is on NSX Group concerning allegations of tax and financial irregularities occurring both prior to and following the regulation of Brazil's betting sector. Reports state that the group handled over BRL5 billion (approximately $964.2 million) in betting services in 2025 alone. Flutter Entertainment acquired a 56% ownership stake in NSX Group last year.
Preliminary evidence suggests the investigation has uncovered that the individuals involved may have established a shell company in Curaçao to give the impression that their operations were based outside Brazil ahead of regulatory measures. However, it has become clear that domestic companies associated with the group were responsible for managing its activities within Brazil.
Furthermore, the authorities believe that various payment institutions and complex financial transactions were used to transfer funds between Brazil and foreign locations. Part of these funds reportedly returned to Brazil as payments for services, potentially complicating the tax landscape and suggesting a method was created to facilitate the repatriation of funds previously sent overseas.
The investigation is also looking into potential shell accounts at fintech companies which may have been utilized to obscure the flow of funds and the identification of the final beneficiaries.
While NSX Group secured authorization to operate within the betting sector in 2025, indications suggest that the group might have been conducting business in Brazil prior to this without proper authorization and without compliance with tax obligations. Investigators are examining whether the funds utilized for licensing fees were derived from activities undertaken before the sector was regulated.
Evidence further points to the manipulation of previous corporate structures to continue facilitating tax evasion.
Evidence of allegedly fictitious expenses being reported to tax authorities is also under scrutiny; the Federal Revenue Service believes this could lead to improper tax reductions starting from 2025.
This marks the second significant action taken by the Federal Revenue Service and the MPF against online betting companies concerning tax and financial irregularities. Earlier, on August 13, Operation Arena led to 17 search and seizure warrants being executed in five states, resulting in asset seizures and funds amounting to BRL1 billion, focused on the operator Pixbet.
These coordinated efforts by law enforcement and tax authorities aim to curb tax evasion, illicit capital flight, and money laundering activities within a rapidly evolving economic sector.
In addition to enforcing court orders, the Federal Revenue Service has begun 11 tax audit investigations to further explore identified irregularities, which the agency estimates could lead to a recovery of approximately BRL300 million for the public treasury.
As the investigation progresses, authorities are set to scrutinize both domestic and international financial movements involving NSX Group to uncover the origins of these funds, assess for any unreported income, and identify the parties involved in the transactions being analyzed.
Currently, no arrests have been made concerning NSX executives related to Operation Shadow Game.
In response to the investigation, NSX Group has publicly acknowledged the ongoing inquiry. In a statement released on Friday, the company noted, "NSX Brasil confirms that it received, this Friday morning, at its office in Recife, a request from the Federal Revenue Service, within the scope of an investigation conducted by the Federal Public Prosecutor’s Office (MPF)."
The statement continued, "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. NSX Group emphasizes its commitment to fully cooperate with relevant authorities and is prepared to provide all necessary clarifications, having already submitted requested documents and information."
The company insists it has operated in compliance with applicable laws and regulations, ensuring strong governance, internal controls, and adherence to international standards established by Flutter Entertainment, which is publicly traded on the New York Stock Exchange and operates in over 100 countries. NSX Group respects due process and will continue to provide necessary clarifications through the proper institutional channels.
