The Public Prosecutor’s Office at the Court of Auditors of the Union (MPTCU) has asked the Court of Auditors of the Union (TCU) to examine the criteria used by the federal government to authorize betting companies to operate in Brazil. According to Deputy Prosecutor Lucas Furtado, the licensing process for companies does not ensure an adequate level of transparency.
Currently, fixed-odds betting permits are issued by the Ministry of Finance’s Secretariat for Sports Betting and Sports Betting.
The request presented by the MPTCU questions the application of administrative secrecy on information relating to the authorisation procedures of companies in the sector, in particular on data regarding the corporate structure and the beneficial owners of the companies.
For this reason, the Audit Unit Specialized in Budget, Taxation, and Fiscal Management (AudFiscal) is examining who the shareholders of betting companies are, who the final beneficiaries are, what criteria the government uses to grant authorizations, and whether the procedures in place ensure an adequate level of transparency.
The case has been assigned to Minister Bruno Dantas. The objective of greater transparency by the Government is to prevent potential money laundering, the entry of shell companies into the national market, the concealment of the identities of entrepreneurs involved in the sector, potential conflicts of interest, and the participation of prohibited or investigated parties.
In parallel, the TCU is already overseeing the governance of the betting sector, anti-money laundering measures, and market supervision. The body has repeatedly emphasized the importance of strengthening transparency and oversight mechanisms in a rapidly expanding sector characterized by high financial and regulatory risks.