Sports betting company targeted in police operation.

The Civil Police of Minas Gerais carried out search and seizure warrants at the headquarters of Sabiá Administração Ltda., a company that controls the betting platforms Lotogreen, Br4bet and Goldbet. The operation took place last Wednesday (10) in Pompéu, Minas Gerais. During the action, agents from the 1st Specialized Fraud Investigation Police Station (DEIF) seized a notebook and several documents.

The investigation is part of a police inquiry into possible irregularities in sports betting and online gambling. Authorities are investigating the company's activities prior to its registration with the Secretariat of Prizes and Betting of the Ministry of Finance (SPA-MF). Currently, Sabiá Administração is registered with the federal agency.

BNLData has learned that there are other ongoing investigations at the state and federal levels, through the civil police and the Federal Police. A source interviewed for this report stated: "There is a risk of the formation of an investigation industry in the betting sector."

The same source indicated that these investigations could create difficulties for companies already registered with the Prizes and Betting Secretariat. Among the potential problems would be the creation of opportunities for extortion practices and complications in the relationship with the federal regulatory body.

Information obtained by the report indicates that at least two companies in the sector had their licenses denied by SPA-MF due to police operations and investigations. The inquiries related to these companies were subsequently closed, but the damage to the brands' reputation with the regulatory body had already occurred.

The operation in Pompeii highlights the challenges of the betting market in Brazil, especially regarding the transition between the period before regulation and the current scenario of formalization of the sector under the supervision of the Secretariat linked to the Ministry of Finance.