CEO and wife arrested
The legal director of Esportes da Sorte (EdS) has insisted the company is not guilty of any wrongdoing after the owner and his wife were arrested by authorities last week.
an arrest warrant was issued amid allegations of money laundering and illegal betting
EdS CEO Darwin Henrique da Silva Filho and his wife Maria Eduarda Filizola handed themselves in to federal police on Thursday, September 5 after an arrest warrant was issued amid allegations of money laundering and illegal betting.
The operation is part of a wide-reaching investigation in Brazil involving the civil police of Pernambuco, the ministry of justice and public security, Interpol, as well as local authorities from other regions of the country.
So far, the investigation has seen 19 arrest warrants issued, including one for Filha’s father, who is alleged to operate an illegal gambling den affiliated with EdS.
Filha defended by director
Prior to turning himself over, Filha issued an open letter expressing surprise that he was being targeted. Gabriel Oliveira, his company’s legal director, has defended him on Brazilian television and insisted the company has not breached the law.
Speaking on the television program Fantástico, Oliveira protested: “The situation of the last few days, triggered by the [Federal Police]’s Operation Integration, does the nation a disservice and undermines what should be its purpose, the truth.”
“We are ‘guilty’ of transparency. We are ‘guilty’ of having evidence and operating within the law, including all financial operations being carried out through honest institutions and with procedures approved by the Central Bank.”
In contrast, Brazil’s ministry of justice has accused EdS of moving almost 3bn Brazilian real ($537m) through channels for illegal gambling and money laundering in a period from January 2019 to May 2023.
Brazil’s upcoming reforms
The move comes amid increasing crackdowns on illegal gambling-related activity in Brazil, with several slot operators shut down and plans to punish sites accepting illegal deposits announced this week alone.
At present, gambling is severely restricted in the country, with only certain kinds of sports betting permitted, along with lotteries and bets on horse races.
EdS is among the hundreds of operators who have applied for licenses
However, President Lula da Silva has set plans in place to introduce a regulated federal gambling market in the country. Ahead of the launch, increasing scrutiny has been placed on illegal gambling in Brazil, which has proliferated enormously in recent years. EdS is among the hundreds of operators who have applied for licenses, but the investigation will cast significant doubt over whether one will be granted.
“We are certain of our innocence and we remain where we have always been, at the disposal of justice,” said Oliveira. “We are certain that all of this will be remembered as a sad, disproportionate and irresponsible episode.”