https://igaming.org/sports-news/federal-court-in-brazil-probes-esportes-da-sorte-over-money-laundering/

Brazil’s Federal Justice system is now at the center of an investigation into suspected money laundering tied to Esportes da Sorte and its related operations.

The case, known as Operation Integration, initially began in Pernambuco state. Authorities were looking into claims that online betting platforms were being used to launder money from jogo do bicho, an illegal lottery-style game still popular across Brazil.

However, Judge Andréa Calado da Cruz ruled that strong evidence pointed to crimes beyond state jurisdiction, including international money laundering and financial misconduct, prompting the transfer to the Federal Justice system.

In her ruling, Judge Calado cited signs of offshore structures designed to hide assets. She referenced HSF Gaming, operator of the Esportes da Sorte brand and sponsor of Corinthians Football Club, as well as businessman José André da Rocha Neto, who previously sponsored Corinthians through Vaidebet.

Offshore Money Movements

Investigators allege €485 million tied to gambling activities was moved through the Isle of Man using entities like Luxembourg-based Alpharise Investments. This follows an earlier order from Pernambuco state authorities freezing £6.3 million held in an Isle of Man account linked to Esportes da Sorte.

Esportes da Sorte sharply criticized the decision to move the case to federal jurisdiction, calling it “an act of desperation.” The company said it believes the investigation lacks impartiality and argued that the probe should be annulled.

The betting operator also questioned Judge Calado’s handling of the case, maintaining confidence that it will be dismissed. Corinthians Football Club, which is sponsored by Esportes da Sorte, has not commented on the ruling.

The investigation is expected to intensify as federal authorities review evidence and determine whether charges will be brought.