Brazil: Rio Grande do Norte Opens Probe Into Suspected Betting Scheme

Authorities in Rio Grande do Norte have turned their attention to a suspected illegal fixed odds betting network that may have pushed large sums of money through a small town in the Seridó region. The Public Prosecutor Office of Rio Grande do Norte (MPRN) opened the inquiry after unusual financial activity surfaced around platforms linked to the municipality of Bodó.

Good to Know

• Investigators uncovered an estimated BR415m in transactions tied to platforms linked to the local agency LotSeridó.
• Courts authorized seizure and blocking of assets valued at up to BR145m while the case moves forward.
• More than 70 municipalities across Brazil passed local lottery laws despite lacking authority to operate fixed odds betting.

The investigation centers on the municipal agency LotSeridó, which MPRN says created an appearance of legitimacy for several online betting platforms. Prosecutors argue that municipalities do not have the authority to run fixed odds betting or set local laws for gambling, making the reported activity unlawful.

Authorities reported that the urgency for asset freezes stemmed from concerns around money transfers leaving the country or being redirected to avoid taxation. By locking up funds early, prosecutors aim to preserve resources for potential reparations and future criminal actions.

Financial documents reviewed by the MPRN revealed substantial flow across the platforms over a ten month period. Analysts reached an estimate of BR415m after examining revenue percentages tied to Bodó. The municipality reportedly received close to BR8m from a two percent share of gross gaming revenue, a figure investigators used to extrapolate the total amount moved.

The inquiry also includes allegations of money laundering, unauthorized gambling, criminal association, inducement to speculation, and violations linked to consumer relations. MPRN flagged patterns that included the use of individuals whose financial backgrounds did not align with the amounts handled, along with companies registered to addresses that did not exist or that continued operating after dissolution.

As news spread, Bodó municipal leadership announced it learned about the case only through information posted on the MPRN website. The administration said it remains open to cooperating once an official notice arrives.

FAQ

Why is the MPRN investigating LotSeridó?

Prosecutors believe the agency acted as a front for online betting platforms even though municipalities cannot operate fixed odds betting programs.

How much money moved through the suspected scheme?

Investigators estimate around BR415m flowed through linked platforms over ten months, based on revenue shares reported by Bodó.

What crimes are under review?

The investigation covers money laundering, unauthorized gambling, criminal association, inducement to speculation, and violations related to consumer relations.

Why did courts freeze assets?

Authorities acted quickly to prevent possible capital flight, tax avoidance, or dissipation of funds that may be needed for reparations.

Has Bodó responded to the allegations?

Local officials said they learned about the inquiry from the MPRN website and are prepared to cooperate once formally contacted

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