TLDR
- Brazil’s Federal Revenue Service launched Operation Conto da Sorte, targeting an illegal betting scheme worth BRL50 billion ($9.7 billion)
- 37 companies were investigated across multiple states, with 14 search and seizure warrants executed
- Up to BRL145 million in assets were frozen by court order
- The scheme used shell companies and “front men” to hide financial control and launder money
- The fraud originated from irregular betting licenses issued by a small municipality in Rio Grande do Norte
Brazil’s government has launched one of its biggest crackdowns on illegal betting, uncovering a scheme that moved an estimated BRL50 billion ($9.7 billion) across 37 companies.
The operation, called Operation Conto da Sorte, was carried out by the Federal Revenue Service in partnership with state Public Prosecutors’ offices on June 19, 2026.
Finance Minister Dario Durigan confirmed the operation and stated the government has a zero-tolerance policy toward illegal betting.
Fourteen search and seizure warrants were executed across the states of Pernambuco, Ceará and São Paulo. Investigators focused on collecting documents, digital media and verifying the real structure of the companies involved.
A court ordered the freezing of up to BRL145 million in assets. That money may be used to compensate for damages caused by the illegal activity.
How the Scheme Worked
Investigators found that the group set up dozens of companies involved in gambling, betting and payment processing. Many were transferred to third parties who did not have the financial means to run them.
Some of those individuals were even recipients of government emergency aid. Despite that, the actual financial control stayed with the scheme’s leaders.
Certain companies had no physical presence at all. They existed only to move money through the banking system.
Investigators identified money laundering, tax evasion and the purchase of real estate using illegal funds. The companies also failed to transfer net betting revenue, which is required under Brazilian law.
Where the Fraud Started
The scheme traces back to the town of Bodó in Rio Grande do Norte. The local government created an agency called LOTSERIDÓ, which began issuing betting licenses without proper authority.
Even after that agency was shut down, the companies it licensed continued to operate without approval from Brazil’s Secretariat of Prizes and Bets.
The case went to Brazil’s Supreme Federal Court. The court confirmed that municipalities do not have the power to authorize gambling or betting operations.
Government’s Next Steps
Minister Durigan said the operation will be expanded. The government plans to strengthen its partnerships with Public Prosecutors to increase enforcement.
The Federal Revenue Service said it will keep targeting fraud involving shell companies, tax evasion and unpaid taxes.
Operation Conto da Sorte is described by the government as its first serious initiative to protect the legal iGaming market in Brazil.
The operation signals a shift toward stricter oversight of the country’s growing online betting sector, which was formally regulated in recent years.
