The notification emphasizes that only the Union, the States, and the Federal District are permitted to regulate and distribute bets, urging the municipality to reverse the bidding process.
Brazil.- The Ministry of Finance issued a notification to the municipality of Bodó, located in the state of Rio Grande do Norte, demanding the suspension of a tender published by the local city hall. The tender, which aimed to accredit companies for the exploitation of fixed-odds betting and forecasts, was deemed illegal for violating federal legislation. According to Law 13.756, only the Union, the States, and the Federal District are authorized to operate this type of service.
The tender, published in October 2024, allowed betting companies to pay a fee of R$5,000 (USD861) to operate within the territorial limits of the municipality. The justification presented by the Bodó city hall highlighted the possibility of increasing municipal revenue without depending on new taxes. According to the local administration, the operation was restricted to the territory of Bodó, without the need for federal authorization.
However, the Ministry of Finance warned that the proposed model could allow the realization of bets virtually, exceeding the geographical limits of the municipality. This means that people from other locations could access the bets, which would constitute an illegality. The Ministry clarified that, in cases like this, the exploitation of bets requires federal authorization, in accordance with the current regulations established in Law 14.790/2023 and the Ordinances of the Secretariat of Prizes and Bets.
Thus, while the value of federal concession can reach R$30m (USD 5m), Bodó offered the exploitation of the service for only R$5 thousand, which aroused the interest of 38 companies, as pointed out by the city hall.
With a population of just 2,363 inhabitants, Bodó has become a focal point for the betting sector in Brazil. The proposal to legalize online betting in the municipality was an attempt to boost the local economy and modernize public management. However, illegality arises when these bets are not limited to the municipality and reach a national or international audience, requiring proper federal regulation.
Despite the notification from the Ministry of Finance, the Bodó city hall defended the legality of the tender and stated that the operation of the bets was limited to the territory of the municipality. In a note sent to the G1 portal, the local administration maintained that, within its limits, no federal authorization is required. However, this interpretation was rejected by federal authorities, who warn about the need to comply with national regulations.
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So far, the municipality had not officially expressed itself about the suspension of the bidding process nor about whether it would take measures to adjust the tender to federal legislation. The situation remains open.
