Key Points
- Federal Revenue Service executed Operation Conto da Sorte against illegal gambling network valued at BRL50 billion ($9.7 billion)
- Authorities investigated 37 companies operating across several Brazilian states, conducting 14 raids
- Court order froze BRL145 million in assets linked to the criminal enterprise
- Criminal network employed shell corporations and proxy operators to conceal ownership and facilitate money laundering
- Investigation traced illegal operations to unauthorized betting permits issued by a municipality in Rio Grande do Norte
Brazilian authorities have executed one of the nation’s most significant enforcement actions against illegal gambling operations, revealing a criminal network that processed approximately BRL50 billion ($9.7 billion) through 37 corporate entities.
The enforcement action, designated Operation Conto da Sorte, was conducted by Federal Revenue Service officials working alongside state-level Public Prosecutors on June 19, 2026.
Finance Minister Dario Durigan publicly acknowledged the operation and emphasized the administration’s strict stance against unauthorized betting activities.
Authorities executed fourteen search operations and property seizures throughout Pernambuco, Ceará and São Paulo states. Law enforcement officers concentrated on securing documentation, electronic storage devices and establishing the genuine organizational framework of the targeted entities.
Judicial authorities approved the freezing of assets totaling up to BRL145 million. These frozen funds could potentially serve as restitution for harm resulting from the criminal activities.
Mechanics of the Criminal Network
Authorities discovered that the organization established numerous entities engaged in gaming, wagering and financial transaction services. Multiple companies were registered under the names of individuals lacking the resources to legitimately operate such businesses.
Several of these nominal owners were actually receiving government financial assistance. Nevertheless, operational control remained with the network’s principal organizers.
Multiple companies maintained no legitimate business locations whatsoever. Their sole purpose was facilitating financial transactions through banking channels.
Investigators documented money laundering activities, tax fraud and property acquisitions funded through illegal proceeds. The entities also violated Brazilian regulations requiring the transfer of net gaming revenues to government authorities.
Origins of the Fraudulent Network
The criminal enterprise originated in Bodó, a municipality in Rio Grande do Norte state. Local officials established LOTSERIDÓ, an agency that began distributing betting permits despite lacking legal authorization.
Following the closure of that agency, the companies holding its licenses maintained operations without obtaining approval from Brazil’s Secretariat of Prizes and Bets.
The matter was brought before Brazil’s Supreme Federal Court. Justices ruled definitively that municipal governments lack constitutional authority to license gambling or betting enterprises.
Planned Government Actions
Minister Durigan announced plans to broaden the scope of enforcement activities. The administration intends to deepen collaboration with Public Prosecutors to enhance regulatory compliance.
The Federal Revenue Service announced its commitment to continuing operations against fraudulent schemes utilizing shell corporations, tax evasion tactics and unpaid tax obligations.
Authorities characterize Operation Conto da Sorte as the government’s inaugural comprehensive effort to safeguard Brazil’s legitimate iGaming industry.
The enforcement action represents a transition toward more rigorous supervision of the nation’s expanding online wagering industry, which received formal regulatory framework in recent years.
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