Brazil: prosecutors block $27m in alleged illegal betting scheme
The investigation secured a judicial order to freeze up to BR145m ($27m) in assets.
The Public Prosecutor’s Office of Rio Grande do Norte (MPRN), a state in Brazil, has launched an investigation into an alleged illegal fixed odds betting scheme operating in the municipality of Bodó, in the Seridó region.
As part of the inquiry, the state judiciary authorized the seizure and blocking of assets valued at up to BR145m belonging to individuals and companies under investigation.
According to the MPRN, the suspected operation used the municipal agency LotSeridó as a facade to create an appearance of legality for dozens of online betting platforms.
Prosecutors argue that the activity is illegal because Brazilian municipalities are not authorized to legislate on or operate fixed odds betting or lottery services, although more than 70 municipalities have passed local lottery laws.
The MPRN stated that the investigation covers alleged money laundering, inducement to speculation, unauthorized gambling, criminal association and crimes against consumer relations.
Prosecutors said the urgency of the asset freeze was justified by the risk of capital flight, tax evasion and dissipation of resources, which could compromise future reparations and criminal proceedings.
Financial records reviewed by the authorities indicate significant movement of funds, with an estimated BR415m generated in ten months through platforms linked to the municipal agency.
The figures were calculated from Bodó’s reported receipt of 2% of gross gaming revenue, which amounted to around BR8m.
Investigators also reported indications of the use of individuals with socioeconomic profiles incompatible with the volume of money moved as well as companies registered to non-existent addresses or continuing operations after being dissolved.
The Mayor’s Office of Bodó issued a note stating it learned of the case solely through the MPRN website and has not yet received any official notification.
The administration said it is willing to cooperate with the investigation should it be formally requested.
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