Brazil Launches “Conto da Sorte” Operation Against Illegal Betting Companies

Brazil’s Federal Revenue Service has joined prosecutors in a major enforcement action targeting suspected illegal fixed-odds betting companies, with search warrants carried out in Pernambuco, Ceará and São Paulo.

Brazil has launched a new enforcement action against suspected illegal betting activity as authorities continue to tighten control over the country’s regulated fixed-odds betting market.

The Federal Revenue Service participated on Thursday, June 18, in “Operação Conto da Sorte,” an investigation into companies allegedly operating fixed-odds betting services without authorisation from the Secretariat of Prizes and Betting of the Ministry of Finance.

The operation was carried out in partnership with the Public Prosecutor’s Offices of Rio Grande do Norte and Pernambuco. A total of 14 search and seizure warrants were issued by the 2nd Court of the District of Currais Novos, in the Court of Justice of Rio Grande do Norte, and executed in the states of Pernambuco, Ceará and São Paulo.

According to the Ministry of Finance, investigators identified a group of 37 companies allegedly active in the illegal betting sector. Finance Minister Dario Durigan said the companies showed preliminary financial movement of around R$50bn, while the exact amount is expected to be determined after the analysis of documents, seized materials and banking data.

Authorities are also seeking the seizure of assets and rights up to R$145m to secure possible restitution related to the alleged illegal activity.

The investigation began after the municipality of Bodó, in Rio Grande do Norte, created a local autarchy called LOTSERIDÓ, which allegedly accredited fixed-odds betting companies irregularly. Although LOTSERIDÓ was closed in October 2025, authorities say the companies continued operating without federal authorisation from the SPA.

The Ministry of Finance said the suspected group created dozens of gambling and betting companies, as well as payment institutions, which were formally transferred to third parties without sufficient economic capacity. Investigators allege that the financial and managerial control remained with the same group, while some companies existed only to move money through bank accounts.

The Federal Revenue Service contributed to the investigation through fiscal analysis of the individuals and companies involved. This included checking whether the legal entities actually operated, assessing the economic and financial capacity of partners and administrators, and identifying signs of a de facto economic group.

The case also includes suspected tax evasion, money laundering through real estate acquisitions, financial movement incompatible with declared income and failure to transfer the legally required share of net betting revenue under Brazil’s fixed-odds betting law.

For Brazil’s regulated betting market, the operation is significant because it shows that enforcement is moving beyond website blocking and licence lists. Authorities are now targeting corporate structures, payment channels, tax records and the people behind suspected illegal operators.

The case also reinforces the government’s message of zero tolerance toward illegal betting. As Brazil’s licensed market develops, actions such as “Conto da Sorte” may become increasingly important for protecting tax revenue, reducing unfair competition and strengthening the credibility of the regulated sector.