Brazilian tax authorities and federal prosecutors have opened an investigation into NSX Group, the operator behind Betnacional and majority-owned by Flutter. The company faces allegations of tax evasion, illegal currency transfers and money laundering. Operation Shadow Game began with raids in João Pessoa, Recife and São Paulo, deploying 28 tax inspectors and 10 federal prosecutors.
Investigators claim NSX processed more than 5 billion BRL in wagers this year alone. Flutter completed the acquisition of a 56% stake in NSX last year. The core allegation centres on pre-regulation conduct: authorities say the group registered a shell company in Curaçao to create the appearance of offshore operations while the business was run by Brazilian entities. Funds were allegedly moved out through payment institutions and structured transactions, then returned to Brazil disguised as service payments. Some proceeds were concealed through fintech accounts.
Tax officials are examining the source of funds NSX used to pay its licensing fee after market legalisation, suspecting it may derive from the illegal period. Authorities estimate potential fiscal damage at 300 million BRL and have opened 11 tax audits. No arrest warrants have been issued.
This marks the second major enforcement action against betting operators in a month. On 13 August, Operation Arena executed 17 searches and froze 1 billion BRL in Pixbet assets.
NSX confirmed receipt of the tax authority request. The company said its lawyers have not yet reviewed case materials and declined to comment at this stage. It pledged full cooperation with authorities and cited compliance with Flutter standards, the NYSE-listed global group.
