Brazil Expands Crackdown on Illegal Gambling, Arrests Seven in Laundering Probe

The operation, codenamed Corujão (“Big Owl”), took place in Januária, a municipality in the state of Minas Gerais, and targeted a family-run network believed to have been active for more than twenty years.

According to the Civil Police of Minas Gerais, the group operated with a clear internal structure, assigning roles such as leaders, accountants, managers, and street-level collectors. Investigators say the organization grew significantly over time, eventually handling financial flows at what authorities described as “million-level” volumes.

To disguise the origins of illicit proceeds, the suspects allegedly set up businesses in legitimate sectors, including construction materials and gas distribution. These enterprises were reportedly used as fronts to integrate illegal funds into the formal economy, a common laundering tactic that complicates financial tracing efforts.

During the operation, police executed 10 search and seizure warrants and obtained court approval to block bank accounts and freeze both movable and immovable assets tied to the suspects. Authorities seized 10 vehicles, as well as cash, mobile phones, and documents considered relevant to the investigation.

Delegate Flávio Cavalcanti Rocha emphasized that the case required detailed financial analysis to trace the movement of money from collection points through to laundering channels. The complexity of the scheme reflects the persistent challenges law enforcement faces in dismantling entrenched illegal betting networks.

Operation Corujão builds on a previous enforcement phase carried out in January 2024, which had already targeted the same group. In that earlier action, police conducted 15 searches, arrested seven individuals, and secured the freezing of approximately BRL 10 million (around $1.9 million) in assets.

All individuals detained in the latest operation have been transferred to the prison system and remain under judicial custody. Authorities confirmed that investigations are still ongoing as they continue to map the full extent of the network and its financial activities.