Brazil authorities expand probe into illegal and sophisticated betting network with multi-state raids

Brazilian authorities have intensified enforcement action against an alleged illegal online betting network, carrying out coordinated raids across Pernambuco, São Paulo and Ceará as part of a broader investigation into financial and gambling-related crimes.

The operation, known as “Conto da Sorte,” is being led by the Public Prosecutor’s Office of Rio Grande do Norte (MPRN) with support from the Federal Revenue Service and other state-level authorities. The case centers on suspected unauthorized fixed-odds betting activities, alongside allegations of money laundering, consumer fraud, criminal association and illegal lottery operations.

Speaking on Thursday, Finance Ministry Executive Secretary Dario Durigan said the investigation originated within the Ministry of Finance and its Secretariat of Prizes and Betting (SPA), in cooperation with prosecutors and tax authorities.

“This is an operation that had already been worked on by the Ministry of Finance and that began with the Secretariat of Prizes and Bets – SPA, together with the Public Prosecutor’s Office of the State of Rio Grande do Norte, and involved the Federal Revenue Service and intelligence information from the Federal Revenue Service, in which we identified a group of 37 legal entities, 37 companies, that operated in the illegal betting sector, and today 14 search and seizure warrants are being executed in Pernambuco, in the state of Ceará, and also in the state of São Paulo,” Durigan said.

Authorities allege that the network used a structure of companies to facilitate betting operations without federal authorization, despite Brazil’s regulatory framework requiring central government oversight. Investigators have also pointed to the use of intermediaries and corporate entities to obscure ownership and manage financial flows.

According to investigators, the group also deployed digital manipulation techniques to attract users and build credibility. This included alleged intrusions into public-sector systems and the insertion of malicious code into trusted websites, such as those using “.gov.br” and “.edu.br” domains.

Authorities said these alterations enabled the creation of falsified indexing pathways that redirected search engines and users to illegal betting platforms, reinforcing a misleading perception of legitimacy.

The probe builds on earlier technical analysis conducted by the SPA, which flagged irregular activity linked to multiple platforms operating nationwide. Enforcement actions this week included searches at both residential and commercial properties connected to individuals and companies under investigation.

Separately, prosecutors have argued that part of the scheme relied on presenting a façade of legitimacy through local structures, despite legal precedent in Brazil establishing that municipalities do not have the authority to regulate or license betting or lottery activities.