The court in Paraíba suspends Pixbet throughout Brazil due to lack of protection for minors.

The Paraíba State Court ordered the suspension of Pixbet's betting platforms throughout the country this Wednesday (September 2nd). Judge João Lucas Souto Gil Messias, of the Children and Youth Court of Campina Grande, determined that the Ministry of Finance and the National Telecommunications Agency (Anatel) take the necessary measures to take down the company's websites and applications.

The decision was motivated by the lack of evidence of effective mechanisms to prevent children and adolescents from placing bets on the platforms. The company failed to provide the information required in a previous court order, from July, regarding systems for protecting minors.

In addition to the suspension, the magistrate ordered the payment of a fine of R$ 4,7 million. Pixbet has five days after notification to deposit the amount in court. The judge also ordered a specialized expert to examine the company's systems, platforms, source code, and databases to verify whether the identification, biometric, and child protection mechanisms function properly and whether they can be circumvented. Pixbet's defense has not commented on the new court order.

Developments in Operation Arena

The decision on Wednesday (September 2nd) adds to previous measures already imposed on the group. The Ministry of Finance had determined, in August, the immediate suspension of Pixbet's operations, with the cancellation of ongoing bets and the return of the amounts wagered to users.

Both actions are offshoots of Operation Arena, launched on August 13 by the Federal Police, Public Prosecutor's Office, Ministry of Finance, and Federal Revenue Service. The investigation is looking into suspected currency evasion and money laundering through sports betting, using corporate and financial structures abroad to conceal the origin and destination of the funds.

As part of the operation, 19 search and seizure warrants were executed in the states of Paraíba, São Paulo, Sergipe, Rio de Janeiro, and Paraná. Authorities also ordered the lifting of bank and telecommunications secrecy and the seizure of assets worth up to R$ 1,1 billion from the group. Among the targets was Pixbet's headquarters in Campina Grande, as well as the residence of a man identified as a "front man" for the business group.

Pixbet's owner, Ernildo Júnior, was approached by Federal Police agents in Campina Grande on Thursday (September 2nd). The vehicle he was in and his cell phone were seized during the execution of a search and seizure warrant. The suspects may face charges of currency evasion, money laundering, and other crimes against the national financial system.

Pixbet's legal team stated that they had not yet had access to the decision authorizing the operation and would comment after reviewing the document.