Betnacional owner NSX Group targeted in tax evasion probe
Betnacional owner NSX Group is under investigation in Brazil for alleged tax evasion, currency evasion and money laundering.
The Federal Revenue Service and the Federal Public Prosecutor’s Office (MPF), through the Special Action Group for Combatting Organised Crime, launched Operation Shadow Game on Friday, with the aim of investigating the Flutter-owned group.
Under court orders, six search and seizure warrants were executed in João Pessoa, Recife and São Paulo. The operation involved 28 Federal Revenue Service officials, including tax auditors and tax analysts. The team was rounded out by 10 federal prosecutors, MPF police officers, and experts from the Secretariat for Forensics, Research, and Analysis.
Operation Shadow Game is focusing on the NSX group and has discivered alleged tax and financial irregularities which occurred both before and after the regulation of the betting sector.
The group operates betting services that reportedly handled over BRL5 billion ($964.2 million) in 2025 alone. Flutter completed its acquisition of a 56% stake in NSX last year.
Investigations
Based on the evidence gathered so far, the subjects of the investigation allegedly set up a shell company in Curaçao to create the appearance that the platform’s operations were based outside the country prior to the implementation of regulations. However, investigations have indicated that domestic companies linked to the group were responsible for running its operations in Brazil.
Evidence also points to the use of payment institutions and structured financial transactions to move funds between Brazil and abroad. A portion of these funds reportedly returned to the country later as payments for services rendered. Tax authorities view this as a potential mechanism designed to justify the repatriation of funds previously sent overseas.
The investigation has also revealed the possible use of shell accounts held at fintech companies, to hinder the tracking of the flow of funds and the identification of their ultimate beneficiaries.
Although the group under investigation obtained authorisation to operate in the sector in 2025, there are indications that the business was already being conducted in Brazil prior to that, without authorisation and without the payment of applicable taxes.
Investigators are also seeking to determine whether the funds used to pay the licensing fee originated from activities carried out before the sector was regulated.
Evidence suggests that some previously existing structures were adapted to continue facilitating tax evasion schemes.
Among the matters investigated in Operation Shadow Game is the reporting of allegedly fictitious expenses to tax authorities. The Federal Revenue Service anticipates a potential impact regarding the improper reduction of taxes due from 2025 onwards.
Joint action
This is the second major operation by the Federal Revenue Service and the MPF targeting tax and financial irregularities among online betting companies. On 13 August, Operation Arena executed 17 search and seizure warrants across five states. A court order authorised the seizure of assets and funds totaling up to BRL1 billion, focusing on the operator Pixbet.
The operation is part of a joint effort between law enforcement and tax authorities. The goal is to prevent and combat practices such as tax evasion, illicit capital flight, and money laundering within one of the fastest-growing economic sectors of recent years.
Alongside the execution of court-ordered measures, the Federal Revenue Service has initiated 11 tax audit proceedings. The agency aims to further investigate the indications of irregularities that have been identified. The Federal Revenue estimates a potential recovery of approximately BRL300 million for the public treasury.
As the investigation contiues, domestic and international financial flows into the company will be further looked into by the authorities. They will seek to evaluate the origin of the funds involved, check for any unreported revenue, and identify the beneficiaries of the transactions under investigation.
As of now, no arrest warrants have been issued against NSX executives in connection with Operation Shadow Game.
NSX Group responds
The Flutter-owned company has acknowledged the investigation publically. In a statement on Friday morning it said: “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’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.
“The company reiterates that it will fully cooperate with the relevant authorities and will remain available to provide all necessary clarifications, having already submitted the requested documents and information,” it continued.
“Throughout its operations in the country, the company conducts its business in accordance with applicable laws and regulations and maintains robust governance structures, internal controls, and compliance, aligned with the international standards of Flutter Entertainment, a global group to which it belongs, listed on the New York Stock Exchange (NYSE) and operating in more than 100 countries.
“The company respects due process and will continue to provide the necessary clarifications through the appropriate institutional channels.”