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Ministry of Finance notifies municipality of Bodó for accreditation of ‘Bets’

The Ministry of Finance notified the municipality of Bodó, in Rio Grande do Norte, to suspend a bidding notice for accreditation of ‘Bets’ launched in October 2024. The municipality registered 38 companies interested in operating bets in the city at a grant cost of R$5,000 (US$900). The notification is due to the fact that the activity can only be carried out by the Union, States and Federal District. According to the IBGE, Bodó has 2,363 inhabitants.

“Law 13,756, in its Chapter V-A, establishes that only the Union, the States and the Federal District may offer fixed-odds betting. As soon as it becomes aware of a municipality offering betting, the Ministry of Finance sends a notification to stop offering this type of service. The rules for obtaining authorization are described in a series of regulations published in Law 14,790/2023 and in the Ordinances of the MF’s Secretariat of Prizes and Betting, in particular Ordinance SPA/MF No. 827/24,” said the Ministry of Finance in a note sent to TN, also adding that the municipality has already been notified about the service being offered in the city.

According to lawyer and specialist in Digital Law, Beatriz Torquato, the legislation offered by the City of Bodó is illegal.

“When the municipal limits are exceeded, this becomes a problem, because these bets probably found a kind of regulatory paradise in Bodó, since they found the opportunity to operate by paying only R$5,000, while at the federal level the fee is R$30 million. In this sense, their intention is not to operate only in the territory, and when they go beyond that, this problem of illegality arises, which is when the virtual sphere enters, which probably other people, not only from Bodó, would have access to,” he explains.

The notice was published in the Official Gazette in October of last year and aimed to “Accredit the Contracting of Qualified Legal Entities to Operate Passive and Forecast Lottery Modalities in a Virtual Environment,” with a term of validity of five years (extendable for up to 10 more years) and a grant of R$5,000.

“The operation of virtual lottery services in the municipality of Bodó/RN aims to promote local economic development, based on the generation of new sources of revenue and the improvement of public management. The accreditation of companies to operate lotteries offers the municipality the opportunity to increase its revenue without depending on new taxes or direct investments from the public treasury, directly serving the public interest. In addition, the concession model allows the use of advanced technologies to meet the growing demand for online betting services, in accordance with current legislation,” said the justification for the notice published by the City of Bodó.

By the time this edition went to press, the city government had not responded to questions from Tribuna do Norte. In a note sent to the g1 portal, the city said that the accreditation is legal.

“Current legislation does not require federal authorization for companies to operate within the limits of the municipality of Bodó, since their operations are restricted to the municipal territory,” it said in a note.

Source: Tribuna do Norte