Brazil Launches Operation Azzardo Against Illegal Betting

Brazil’s Federal District Civil Police (PCDF) has launched Operation Azzardo, targeting the alleged illegal operation of betting platforms and the financial structures suspected of supporting their activities. The investigation is being conducted by the Department for Combating Corruption and Organised Crime (Decor) and the Organised Crime Repression Police Station (Draco).

According to information reported by Metrópoles, judicial authorities ordered the freezing of assets worth up to BRL 3.483 billion belonging to individuals and companies under investigation.

Approximately 200 police officers took part in the operation across the Federal District and five other states: São Paulo, Goiás, Paraná, Ceará and Rio Grande do Norte. Authorities executed 50 search and seizure warrants during the coordinated action.

The investigation began five months ago after Brazil’s Ministry of Finance Secretariat of Prizes and Betting (SPA/MF) alerted the PCDF to platforms allegedly offering betting services without federal authorisation.

Investigation Traces BRL 1 Billion in Transactions

Investigators identified an alleged scheme involving the movement and concealment of funds through companies established using false corporate registrations.

The financial investigation traced approximately BRL 1 billion in transactions, including payments and transfers to companies under scrutiny, as well as funds generated through the use of unlicensed betting websites.

According to the findings, payments from users were allegedly channelled through a fintech company headquartered in São Paulo. The institution, used by customers to make payments on the platforms, is a Direct Credit Company (SCD) authorised by Brazil’s Central Bank.

Judicial measures targeting the fintech, two other companies belonging to the same corporate group and their executives reportedly apply only to the financial institution’s own assets. Customer accounts belonging to unrelated third parties have not been affected.

Authorities Identify Shell Companies and Crypto Transfers

The investigation also uncovered several suspected shell companies incorporated between February and July 2026. These entities reportedly shared identical registered capital and addresses in Sobradinho, Sobradinho II and Ceilândia, all within the Federal District.

Authorities suspect the group operated illegal betting outlets and developed a parallel system for transferring money. The alleged arrangement exploited gaps in the regulation of payment institutions to move funds between financial entities before converting them into crypto-assets.

Investigators also found indications that state lottery licences were allegedly used to conceal the activities. The authorisations in question were issued by the Paraíba State Lottery (LOTEP) and the Rio de Janeiro State Lottery (LOTERJ).

However, none of the websites examined were reportedly covered by those licences. The permissions applied only to specific brands and territories and did not replace the requirement to obtain federal authorisation.

Court Orders Further Restrictions and Financial Measures

In addition to the asset freeze, the court prohibited the companies under investigation from opening bank accounts for a further 90 days. Authorities also suspended the registration of 100 companies connected to the asset restrictions.

Investigators were granted access to banking and tax information concerning 82 individuals and 83 legal entities through exemptions from confidentiality protections.

Those under investigation could face combined prison sentences ranging from 11 years and six months to 31 years for the suspected offences. The maximum penalty for ideological falsehood in public documents can reach 33 years.

Operation Azzardo is focused on the financial infrastructure allegedly sustaining illegal betting activity, including money transfers, corporate arrangements and payment processing. The investigation remains ongoing and the allegations have not been established through final court rulings.