The Ministry of Finance has ordered an immediate halt to all operations at Pixbet, a sports betting company situated in Paraíba. This action includes the cancellation of all active bets and mandates that the amounts wagered be refunded to users.
This decision is part of Operation Arena, which was launched on Thursday by a coalition including the federal police, the Public Prosecutor's office, the Ministry of Finance, and the Federal Revenue Service. The operation is investigating the business group for alleged currency evasion and money laundering activities linked to sports betting.
Ernildo Júnior, the owner of Pixbet, was confronted by federal police officers in Campina Grande on Thursday. During the execution of a search and seizure warrant, authorities confiscated the vehicle he was in as well as his cellphone.
According to a representative from G1, Pixbet’s legal team expressed they were not informed about the order authorizing the operation and stated they felt "caught by surprise." They indicated they would issue a response once they receive the relevant documentation.
The Ministry of Finance cited non-compliance with regulations set forth by the Secretariat of Prizes and Bets (SPA) as a critical reason for the suspension. Pixbet is accused of not meeting the necessary standards for monitoring and supervising betting companies and lacking systems for tracking compulsive gamblers. Moreover, the company failed to provide essential information requested by SPA and manages the domains "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," which led to the order for the cessation of business for related websites. The company will only be permitted to resume operations once it complies with SPA standards and submits the required information.
Importantly, this suspension order is distinct from the ongoing Operation Arena, which investigates Pixbet for potential money laundering through cryptocurrencies and offshore companies. This operation also took place on Thursday, and SPA clarified that the sanctioning processes preceding Operation Arena were already underway.
As part of the suspension, all active bets must be terminated, and the amounts wagered are to be returned to bettors. To enforce compliance, the Ministry of Finance has set a daily fine of BRL200,000 for any failure to adhere to the suspension order. However, Pixbet retains the ability to operate in Rio de Janeiro and Paraná, where it possesses local licenses.
Operation Arena itself targets a business group suspected of utilizing both corporate and financial arrangements abroad to obscure the origins and purposes of revenue generated from gambling activities. In total, 19 search and seizure warrants were executed across Paraíba, São Paulo, Sergipe, Rio de Janeiro, and Paraná, with authority to break banking and communications secrecy and seize up to BRL1.1 billion.
Within the operation, the Pixbet headquarters in Campina Grande was subjected to a search and seizure, as was the residence of an individual identified as a "front man" for the group. Those under investigation could potentially face charges connected to currency evasion, money laundering, and various offenses against the national financial system.
