Rio Grande do Norte AG challenges Bodó's online betting law
The Attorney General's Office of the Public Ministry of Rio Grande do Norte (MPRN) filed a Direct Action of Unconstitutionality (ADI) to halt the legislation approved by the municipality of Bodó, in the Seridó region, which created the Municipal Lottery “LotSeridó” and enabled the operation of fixed-odds sports betting (bets) within its territory.
The initiative is part of a package of measures promoted by the Public Ministry to dismantle the betting system that had been operating under the protection of municipal regulations.
The central argument: the competence is exclusive to the Union
The MPRN argues that Bodó’s law violates the Federal Constitution, which reserves to the Union the power to legislate on lotteries and betting. The body also emphasizes that the Supreme Federal Court (STF) has already established this interpretation in Binding Precedent No. 2, which expressly prohibits municipalities from creating or operating lottery services on their own account.
For the Prosecutor’s Office, there is no local interest that justifies municipal intervention in a sector that requires complex and nationwide oversight mechanisms. Fixed-odds betting, the MPRN recalls, can only be regulated and authorized by the Ministry of Finance, which is competent to license operators and supervise their operations.
Although Bodó’s law replicated modalities contemplated in federal legislation, it did so outside the Union’s control system, which, according to the Prosecutor’s Office, makes the municipal model legally unfeasible.
Million-dollar injunctions: asset and capital freezes
The ADI adds to precautionary measures obtained by the MPRN in November, when a judge ordered the blocking, seizure, and unavailability of assets up to R$ 145 million, within an investigation into an irregular betting exploitation scheme operating under the protection of municipal law.
The Public Ministry described the operation as “blatantly illegal” and justified the urgency of the injunctions to prevent capital flight and ensure potential compensation for damages to the public treasury. The freezes covered bank accounts, investments, real estate, and vehicles.
The amounts under investigation are significant: according to data released by Bodó’s own City Hall, the companies accredited by LotSeridó moved around R$ 415 million in just ten months of activity.
The municipality’s response
After the court decision became known, Bodó’s municipal administration issued a statement noting that it had only accessed the information through publications by the Public Ministry, and had not yet received official notification.
In its note, the municipality stated:
“We reiterate that we are fully available to the Public Ministry to provide all necessary clarifications and cooperate as appropriate if the body considers it pertinent to include the municipality in the procedure.”
Tags: Brazil, Brazil lotteries, Lotseridó, MPRN