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Betnacional owner NSX Group targeted in tax evasion probe

By jili tutorial · September 2, 2026

Betnacional Owner NSX Group Targeted in Tax Evasion Probe

Operation Shadow Game Targets NSX Group

Brazilian authorities have launched an investigation into NSX Group, the owner of Betnacional, over allegations of 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 Combating Organized Crime, initiated Operation Shadow Game on Friday. The probe focuses on the Flutter-owned group.

Under court orders, authorities executed six search and seizure warrants across João Pessoa, Recife, and São Paulo. The operation involved 28 Federal Revenue Service officials, including tax auditors and analysts, alongside 10 federal prosecutors, MPF police officers, and experts from the Secretariat for Forensics, Research, and Analysis.

Allegations of Tax and Financial Irregularities

Operation Shadow Game alleges that NSX Group engaged in financial irregularities both before and after Brazil regulated the betting sector. The group operates betting services that reportedly handled over BRL5 billion ($964.2 million) in 2025 alone. Flutter Entertainment completed its acquisition of a 56% stake in NSX last year.

Investigators claim that the subjects of the investigation set up a shell company in Curaçao to create the appearance that the platform’s operations were based outside Brazil prior to regulation. However, evidence suggests that domestic companies linked to the group actually ran the operations within the country.

Structured Financial Transactions and Shell Accounts

Authorities also uncovered evidence that the group used payment institutions and structured financial transactions to move funds between Brazil and abroad. A portion of those funds reportedly returned to Brazil as payments for services rendered. Tax authorities view this as a potential mechanism to justify repatriating funds previously sent overseas.

The investigation further revealed the possible use of shell accounts at fintech companies. These accounts were allegedly designed to hinder tracking of fund flows and identification of ultimate beneficiaries.

Operations Before and After Regulation

Although NSX Group obtained authorization to operate in the betting sector in 2025, there are indications that the business was already active in Brazil before that date—without authorization and without paying applicable taxes. Investigators are also probing whether the funds used to pay the licensing fee originated from activities conducted before regulation.

Evidence suggests that some previously existing structures were adapted to continue facilitating tax evasion schemes. Among the matters under scrutiny 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 onward.

Joint Action Against Betting Sector Irregularities

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 authorized the seizure of assets and funds totaling up to BRL1 billion, focusing on the operator Pixbet.

The joint effort between law enforcement and tax authorities aims to prevent and combat practices such as tax evasion, illicit capital flight, and money laundering within one of the fastest-growing economic sectors in recent years.

Ongoing Tax Audits and Asset Recovery

Alongside the court-ordered measures, the Federal Revenue Service has initiated 11 tax audit proceedings. The agency aims to further investigate the irregularities identified. Officials estimate a potential recovery of approximately BRL300 million for the public treasury.

As the investigation continues, authorities will examine domestic and international financial flows into the company. They will 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

Flutter-owned NSX Group has publicly acknowledged the investigation. In a statement issued Friday morning, the company 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.”

“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.”