Executives from Brazil’s regulated betting sector have revealed that funds deposited on illegal betting platforms were traced to financial entities later linked to the “Hidden Carbon” investigation, a major probe into fraud, tax evasion and money laundering.
According to industry sources, operators carried out independent tracking efforts in early 2025, mapping payment flows by making deposits into unlicensed betting sites and monitoring where the funds were directed.
This process led to the identification of 10 fintech companies involved in handling transactions linked to illegal operators.
The findings were shared with federal authorities shortly before the launch of the operation. Of the fintech companies identified, three were reportedly connected to investment funds that later became targets of search and seizure warrants as part of the investigation.
The operation focuses on dismantling a large-scale scheme involving financial crimes in the fuel sector, with alleged links to organized crime.
The connection to betting-related transactions has been mentioned by industry executives as evidence of how illegal gambling platforms may intersect with broader financial crime networks.
Market participants estimate that a significant portion of funds deposited on illegal betting sites is diverted into money laundering structures, while the remainder is lost through fraud schemes.
These platforms often operate from offshore domains and rely heavily on digital marketing and influencer promotion to attract users.
The sector has pointed to enforcement challenges, noting that while authorities, including telecoms regulator Anatel and the Secretariat of Prizes and Betting, have blocked more than 25,000 illegal websites, new domains are frequently launched shortly after takedowns.
Brazilian authorities are investigating operator Pix das Estrelas over an alleged illegal raffle scheme linked to football sponsorships and financial irregularities
