The Ministry of Finance in Brazil has ordered the immediate suspension of Pixbet, a sports betting company operating out of Paraíba. This precautionary measure mandates the cancellation of all ongoing bets and the refund of wagered amounts back to the users.
This action is part of a broader initiative, dubbed Operation Arena, which was launched on Thursday by the federal police, the Public Prosecutor's office, the Ministry of Finance, and the Federal Revenue Service. The operation investigates the company regarding allegations of currency evasion and money laundering linked to sports betting activities.
On the same day, Ernildo Júnior, the owner of Pixbet, was approached by federal police in Campina Grande. During this encounter, authorities seized the vehicle he was in as well as his cell phone while executing a search and seizure warrant.
G1 reached out to the defense team representing Pixbet, who expressed surprise at the order, stating they had not yet seen the document authorizing the operation. They indicated they would hold off on further comment until they reviewed the details of the decision.
According to the Ministry of Finance's precautionary order, Pixbet purportedly did not meet the necessary standards for the monitoring and regulation of betting companies. The company reportedly lacks systems designed to oversee compulsive gambling and failed to provide essential information required by the Secretariat of Prizes and Bets (SPA). Pixbet operates several domains, including "pix.bet.br," "ganhei.bet.br," and "betdasorte.bet.br."
The SPA noted, "The precautionary measure was taken due to the high risk of harm to bettors and the regulated market," leading to the order for the suspension of operations for any websites affiliated with Pixbet. The only path to renewal of operations lies in the company submitting required information and proving adherence to established regulations.
It's important to clarify that this suspension order is separate from Operation Arena, which involves suspicions of money laundering associated with cryptocurrency assets and offshore entities. The SPA indicated that the sanctioning processes against Pixbet had already initiated prior to the launch of this operation.
The Ministry of Finance's decision includes a stipulation mandating the cancellation of all current bets while requiring the return of all wagered amounts to bettors. A daily fine of BRL200,000 will be imposed for non-compliance with the suspension order. However, Pixbet can still conduct business in Rio de Janeiro and Paraná, as it possesses local licenses there.
Operation Arena aims to uncover details about a business group suspected of employing foreign corporate and financial structures to obscure the financial flows generated from gambling and sports betting activities, with Pixbet being a focal point of this investigation.
In total, 19 search and seizure warrants were executed across states including Paraíba, São Paulo, Sergipe, Rio de Janeiro, and Paraná. Authorities also initiated measures to breach bank and telecommunications confidentiality, with efforts to seize up to BRL1.1 billion.
The headquarters of Pixbet in Campina Grande was among the locations targeted during the search and seizure operations, along with the residence of an individual identified as a "front man" for the involved group. Those implicated in the investigation could potentially face charges including currency evasion, money laundering, and other related offenses against the national financial system.
