Brazil Federal Police raids network tied to illegal fixed-odds betting and money laundering

Brazil’s Federal Police launched Operation Velo de Maia on Monday, targeting a money laundering and tax evasion network linked to illegal fixed-odds betting platforms. For PSPs and acquirers, the detail that matters is simple: the alleged structure used 87 companies and cryptocurrency transfers to move funds and obscure their trail.

1. The operation includes nine search-and-seizure warrants, plus personal searches, across six cities in three states: Aparecida de Goiânia and Goiânia in Goiás, São Paulo and Ribeirão Preto in São Paulo, and Porto Alegre and Canoas in Rio Grande do Sul.
2. According to the Federal Police, the suspected network used 87 companies to channel money coming from clandestine betting operators. Authorities also suspect the group sent millions of dollars abroad through cryptocurrencies, which makes tracing the funds harder for investigators.
3. The case began with information provided by the Secretariat of Prizes and Bets (SPA), under the Ministry of Finance. The SPA identified a set of companies that, based on the evidence, appear to have been used as fronts to conceal and transfer revenue generated by unauthorized betting platforms.
4. Those under investigation could face charges for money laundering, tax evasion, and participation in a criminal organization, along with any other offenses uncovered as the inquiry moves forward.
5. The operation name, Velo de Maia, refers to the Vedic philosophical concept of illusion, which the Federal Police is using as a metaphor for the corporate structure allegedly hiding the illicit origin of the money.

The scale of the illegal betting market in Brazil is already large enough to matter for payment routing decisions. In June, Justice and Public Security Minister Wellington César Lima said 25.2 million Brazilians use unauthorized betting sites. The federal government estimates annual economic losses tied to these platforms at $7.050 billion, with about 80% linked to user health damage. A H2 Gambling Capital study, using Central Bank data on remittances, cryptocurrency transactions, and internet traffic, estimates the black-market betting sector moved about $2.960 billion during 2025.