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Three fintech companies sued over financing illegal betting in Bahia

Brazil's Bahia Public Prosecutor's Office has filed a civil lawsuit, seeking to freeze up to BR5m ($982,492) in assets.

1 min read
Justice
Key Points
MP-BA sued Nuoro Pay, Select Credit and Cartos over alleged roles in intermediating payments to illegal betting platforms
The probe began after a consumer reported losing more than BR100,000 in a scam involving betting platforms and payment intermediaries
Prosecutors seek to freeze up to BR5m in assets and permanently shut down the three companies

The Public Prosecutor's Office of Bahia, a state in the northeast of Brazil, has filed a civil lawsuit against three payment companies alleging they took part in a structure used to intermediate payments to unlicensed betting platforms. 

The companies are Nuoro Pay, Select Credit and Cartos.

The investigation began after a consumer reported losing more than BR100,000 in a scam involving illegal betting platforms and payment intermediaries.

According to prosecutor Joseane Suzart, Nuoro Pay and Select Credit processed payments to unauthorized betting operators without conducting necessary checks on beneficiary companies or adequately monitoring atypical transactions. 

Cartos allegedly supplied the technology and infrastructure underpinning Nuoro Pay's operations. The investigation found that betting platforms did not receive funds directly from bettors; instead, fintechs and payment intermediaries were used to move the money, obscuring its final destination. In some transaction receipts reviewed by prosecutors, the name of the betting platform did not appear at all. 

The inquiry also flagged recently created companies, repeated addresses, documents showing signs of editing, and frequent changes in corporate ownership as red flags inconsistent with legitimate financial operations. 

The lawsuit seeks to freeze up to BR5m in assets, rights and financial holdings belonging to the companies and their partners. 

Prosecutors are also requesting the permanent shutdown of all three companies, the inclusion of company partners as defendants, and the adoption of mechanisms to verify whether betting operators involved in the transactions are authorized by the Finance Ministry.

Recently, Brazilian betting associations IBJR and ANJL formally notified major digital platforms in Brazil over the availability and promotion of illegal betting sites.

Good to know

A court in Bahia has recently ordered the regional government to revise contracts and public notices in order to restrict betting advertising during events

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