for early access to the latest igaming videos!
and get the latest igaming news first!
With only 2,363 people, Bodó, a little village in Rio Grande do Norte state, Brazil, has rather become a center of online gambling operations. Entrepreneurs circumvented this new R$30 million (about €5 million) licensing charge for betting companies by taking licenses in Bodó for only R$5,000 (about €800). This makes a striking contrast with the national laws and has transformed the city into a betting paradise.
The transformation of Bodó into a betting center
Thirty-eight businesses have already signed up since 2024 when the municipal government of the town started providing online gaming licenses; per 63 inhabitants, this computes to one company. These companies work under a very basic local framework and sidestep the stringent rules of the Brazilian Ministry of Finance. Moreover, rather than the legally mandated “. bet. br” domain, businesses can choose different domain extensions including “.com”, “. game”, and even “. bet”. This compounds uncertainty and opens up questions on the legality of such works.
Registered companies include well-known sites such as Play na Bet, Betinha, and Bet10 which provide football, basketball, and other sports betting. Another platform called Aposta 7 focuses on live casinos and internet games such as “Ratinho Sortudo” for which they are the second-ranked venue. Even without federal approval, Aposta 7 bears the badge of the Bodó Municipal Lotteryetched (LotSeridó).
What the mayor’s attitude means for the gambling sector.
The impetus behind Bodó‘s emergence as a gambling center comes from its mayor, Horison José da Silva. Supporting the endeavor started by his predecessor, Marcelo Mário Porto Filho, as a way of raising municipal income without increasing taxes or demanding fresh investments, Mayor da Silva belonged to the pro-Bolsonaro PL party. To date, the licensing process has brought R$190,000 (€31.500) for the city and 2% of the net earnings of the businesses.
If these firms followed federal legislation, they would have to transfer R$1.14 billion (approximately €205.2 million) to the Ministry of Finance. Entrepreneurs wishing to get into the betting business at a small cost will find Bodó a very appealing alternative given this striking contrast in costs.
Revenue vs. federal need
Companies can avoid the costly fees imposed by the federal government through the Bodó licensing loophole. Bodó‘s municipal license costs only €800 whereas the federal government asks €5 million for licensing. This variance has led many betting firms which were declined by the federal government register in the city as well as others not wanting to apply because of the great cost.
Although such businesses are not allowed to operate outside their boundaries, Brazilian law allows state and municipal lotteries to license gambling companies within their territory. But many of the betting sites in Bodó use non-official domains, including “. game,” “. industry,” and “-com. ” making things more complicated and begging legal questions. Notwithstanding this, Bodó keeps giving the companies licensing.
In essence, a budding betting haven
Low licensing costs and easy rules have quickly turned Bodó into a top online betting venue. Although the local government has raised considerable money from this sector, it has also caused some uncertainty regarding under federal law the legality of these activities. Though the federal government might finally step in to define the legal framework, Bodó is increasingly a major participant in the betting scene of Brazil as more businesses rush to the town. At present, Bodó is a refuge for gambling entrepreneurs since it offers a path into the industry at a much lower price than what the federal government requires.
Source: iGaming Brasil, O Globo
