Brazil’s tax authorities target NSX Brasil in Operation Shadow Game, with 6 raids across 3 states

Brazil’s Federal Revenue Service and Federal Prosecutor’s Office have opened a tax-evasion, currency misuse, and money-laundering case involving NSX Brasil, the holding behind Betnacional, Betfair, Mr.Jack.bet, and PagBet. For PSPs and acquirers, the relevant bit is simple: the case is not about a small operator, but about a group said to handle 12% of Brazil’s betting market and 9% of its iGaming market.

1. Under Operation Shadow Game, authorities carried out 6 searches in 3 states with 28 Federal Revenue Service employees and 10 federal prosecutors, backed by police. The stated scope of the investigation includes tax evasion, misuse of foreign currency, and money laundering.
2. Prosecutors say the NSX Brasil companies had been operating in Brazil for 7 years, even though the market was officially launched only 1.5 years ago. Before legalization, the group allegedly used a fake Curacao registration to make the business look foreign to Brazilian authorities.
3. The investigation also says some funds sent abroad later came back to Brazil as “payment for services,” and that fake accounts at Brazilian fintech companies were used. After licenses were obtained, the holding allegedly kept part of the grey financial structure in place to avoid taxes and also booked non-existent expenses for the same purpose.
4. In 2025 alone, $964 million passed through the group’s financial infrastructure, while NSX Brasil had previously declared only $231.3 million over 4 years of operations. Tax authorities have also opened 11 additional cases for further investigation, and the first phase is expected to recover up to $58 million in unpaid taxes.
5. NSX Brasil said it is ready to cooperate with investigators. The National Association of Games and Lotteries (ANJL) defended the holding, arguing that it used the only possible operating model before the market’s official launch.