Massive Asset Seizure Targets Underground Gambling Syndicate
The major enforcement move reflecting Brazil’s ongoing push to regulate and sanitize its gambling industry, the Civil Police of Santa Catarina conducted Operation Red Card, resulting in the seizure of over BRL 30 million (US$5.4 million) in assets. The operation targeted a criminal network allegedly responsible for running unlicensed betting websites, slot-style games, online bingo, and the infamous Jogo do Bicho, a longstanding illegal numbers game deeply rooted in Brazilian gambling culture.
This sweeping raid included multiple cities in Brazil’s southern coastal region and led to the confiscation of luxury vehicles, real estate, and financial assets. Authorities also secured computers, documents, and electronic devices, which are now being analyzed for additional evidence.
Legal Fronts, Illicit Roots: A Blurred Line in Brazilian Betting
One of the most disturbing revelations from the investigation was the discovery that at least one licensed betting platform—now operating legally—was originally established by a company with ties to illegal gambling activities. This highlights the difficulty of drawing clean lines in Brazil’s rapidly evolving gambling sector, where regulatory frameworks remain under development and front companies are often used to obscure the origins of illicit wealth.
The core group behind the scheme reportedly includes at least 10 individuals, with operations running through shell corporations used to launder illegal proceeds. Their activities included promoting Fortune Tiger (locally dubbed “Jogo do Tigrinho”), a widely popular but controversial slot-style game that has drawn criticism for its addictive nature and aggressive targeting of vulnerable users.
Reinforcing Regulation: Brazil’s Shift Toward a Clean Market
The operation comes amid Brazil’s broader efforts to regularize and enforce compliance in the gambling industry. The Secretary of Prizes and Betting has recently unveiled its 2025–2026 regulatory agenda, which includes initiatives around:
Transparent licence issuance
Stringent monitoring and enforcement
Consumer protection mechanisms
Combating money laundering and fraud
Brazil’s push toward a modern, regulated gambling market is a response to the rapid expansion of iGaming and sports betting, which have surged in popularity, particularly after the legalisation of sports betting in 2018 and subsequent frameworks introduced in 2023.
A New Chapter in Brazil’s Gambling Landscape
Operation Red Card marks a significant milestone in Brazil’s mission to transition from a fragmented and often illegal gambling scene to a legitimate, government-regulated market. By dismantling criminal infrastructure and bringing grey-market operators to light, the government is sending a clear message: only lawful, transparent, and licensed entities will have a future in the country’s growing gambling economy.
As the regulatory timeline progresses, stakeholders across the ecosystem—from operators and tech providers to investors—will be closely watching how Brazil balances enforcement, market liberalisation, and consumer safety in its pursuit of a fair and lucrative gaming environment.
