The Attorney General’s Office (PGJ) of the Public Ministry of Rio Grande do Norte has filed a Direct Action of Unconstitutionality (ADI) against the municipal legislation of Bodó, which is located in the Seridó region of Rio Grande do Norte.
The challenged regulation established the Municipal Public Lottery Service, called LotSeridó. Furthermore, the law permitted the operation of fixed-odds betting, popularly known as bets.
The MPRN’s initiative challenges the legal validity of the municipal authorization for this type of activity. Therefore, the action is part of a series of measures adopted by the ministerial body against the operation of the betting system in the municipality.
Why does the Public Prosecutor’s Office consider the law unconstitutional?
The Public Prosecutor’s Office of Rio Grande do Norte (MPRN) bases its position on the text of the Federal Constitution. According to the agency, the law establishes the exclusive competence of the Union to legislate on lottery services. Furthermore, the ministerial body highlights an important point: the Supreme Federal Court (STF) has already consolidated this understanding in Binding Precedent No. 2.
According to the MPRN (Public Prosecutor’s Office of Rio Grande do Norte), there is no local interest capable of justifying the municipality’s competence to legislate on the matter; the complexity involved in its oversight demands attention. Therefore, controlling the operation of lotteries and betting requires a more comprehensive regime. This regime is incompatible with municipal action.
According to G1, the Bodó regulation authorized lottery modalities foreseen in federal law. However, the municipality established a system without federal oversight. The federal government is responsible for regulating and accrediting fixed-odds betting operators through the Ministry of Treasury.
Precautionary measures determined in November
The Public Prosecutor’s Office of Rio Grande do Norte (MPRN) had already obtained important precautionary measures in November. These measures include the seizure, blocking, and freezing of assets worth up to R$ 145 million. These actions were part of an investigation into an illegal gambling scheme. The scheme was initially supported by municipal law.
According to the agency, the action was taken due to the blatant illegality of the operations. Thus, the measures reinforce the Supreme Court’s jurisprudence that prohibits municipalities from operating betting and lottery services.
The precautionary measures were deemed urgent, and they include the freezing of account balances, financial investments, real estate, and vehicles. The goal is to prevent capital flight and protect the recovery of damages caused by the illegal activity.
Companies accredited to LotSeridó moved significant sums of money. In just 10 months of operation, revenue reached approximately R$ 415 million. The Bodó City Hall itself demonstrated these figures.
Position of the municipal government
At the time of the blockades, the Bodó city hall issued a statement. The administration reported that it became aware of the situation through a publication in the Public Prosecutor’s Office. However, the municipality did not receive official notification or formal communication.
The municipal administration stated in a note: “We reiterate that we are fully available to the Public Prosecutor’s Office to provide all necessary clarifications and collaborate with the investigations, should the body deem it pertinent to involve the municipality in the proceedings.”
