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Brazilian tax and federal prosecutors are investigating NSX Brasil, operator of Betnacional and Betfair in the country, over alleged tax evasion, currency violations and money laundering.
Operation Shadow Game targets financial activity both before and after Brazil launched its regulated online betting market in January 2025. Authorities estimate that tax proceedings linked to the case could recover about BRL300 million ($57.9 million).
Good to Know
- Federal authorities executed six search and seizure warrants on August 28.
- NSX related betting operations handled more than BRL5 billion during 2025, according to investigators.
- Flutter acquired an initial 56% interest in NSX for about $350 million in May 2025.
Brazil Investigates NSX Financial Structure
Operation Shadow Game included searches in Recife, João Pessoa and São Paulo. The Federal Revenue Service opened 11 tax audit proceedings alongside the criminal investigation. No arrest warrants have been issued.
Authorities are examining claims that a Curaçao company created the appearance that betting operations sat outside Brazil before federal regulation took effect. Investigators allege that companies inside Brazil actually handled much of the business.
The inquiry also covers payment institutions, fintech accounts and financial transfers between Brazil and overseas entities. Officials suspect some money later returned to Brazil as payments for services, potentially disguising the origin of previously transferred funds.
Federal Revenue officials said companies linked to the investigation moved more than BRL5 billion during 2025. Authorities are also reviewing allegedly fictitious business expenses that may have reduced taxes due after regulation began.
Another question concerns the money used for Brazilian betting licence payments. Investigators want to establish whether any of those funds came from betting activity conducted before operators received federal authorisation.
NSX and Betfair remain authorised to operate while the investigation continues. Any penalties would require the applicable administrative or judicial process.
Flutter Investment Puts Case Under Wider Focus
Flutter completed the purchase of 56% of NSX in May 2025, paying about $350 million and combining the business with Betfair Brazil.
Flutter described NSX at the time as a leading Brazilian operator behind Betnacional. The acquisition gave Flutter control of the combined Brazilian operation during the first year of the regulated market.
Operation Shadow Game follows another federal betting investigation in August involving Pixbet, showing a wider enforcement focus on tax compliance, overseas transfers and financial structures used by betting companies.
NSX Brasil said it received a Federal Revenue request at its Recife office on August 28 and had supplied the requested information.
“NSX Brasil confirms that it received, this Friday morning (28), 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 company said it would cooperate fully with authorities and provide further clarification through official channels.
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