TCU demands adequate structure for oversight of betting after identifying flaws in control.
The Federal Court of Accounts (TCU) has instructed the Ministry of Finance to strengthen the oversight structure of the fixed-odds betting market, known as bets. The decision was made during a plenary session held this Wednesday (3), when the TC 24.430/2024 ruling was unanimously approved, which analyzes the actions of the Prizes and Bets Secretariat (SPA) and the Council for the Control of Financial Activities (Coaf) in combating money laundering in the betting market.
The report presented by Minister Jhonatan de Jesus, rapporteur for the case, identified significant deficiencies in the government's oversight capacity. The assessment found that the Secretariat of Prizes and Betting lacks adequate resources to ensure the effectiveness of the sector's new regulations.
The TCU's work is part of a monitoring process aimed at understanding and analyzing the actions of the federal government to prevent and combat money laundering related to the fixed-odds betting market.
Minister Jhonatan de Jesus highlighted in his report the problems found in the oversight structure. “Weaknesses were identified in the authorization process and, mainly, a severe structural deficiency. The agency lacks sufficient personnel, technology, or budget to monitor the immense volume of financial transactions in this market. He concludes that regulation risks being ineffective without an adequate structure to fulfill the government's mandates,” he stated.
Initially, the rapporteur had only proposed recommendations to the Ministry of Finance and the Secretariat of Prizes and Betting. The change to a formal determination occurred after intervention by the president of the TCU (Federal Court of Accounts), Minister Vital do Rêgo Filho, during the discussion of the matter.
The president argued that a simple recommendation would be insufficient given the seriousness of the situation. "There's a lot of talk about regulating these betting issues, and Your Excellency, in this ruling, demonstrates the government's complete inefficiency in carrying out oversight," said Vital do Rêgo.
According to the president of the TCU (Brazilian Federal Court of Accounts), the lack of adequate personnel could render regulatory measures ineffective in practice. Therefore, he requested a significant change to the text from the rapporteur. "Therefore, I would like to request that Your Excellency include 'DETERMINATION' to the Ministry of Finance in capital letters, if possible," he proposed during the session.
The rapporteur promptly accepted the suggestion. "That will be done, Mr. President. I accept your suggestion and change it to ORDER. Thank you, Your Excellency," replied Minister Jhonatan de Jesus.
Vital do Rêgo also suggested that the ruling be sent to the National Congress. "And, in addition, also forward it to the Federal Senate and the Chamber of Deputies, which are dealing with this issue through ordinary bills," he added.
The rapporteur again agreed with the additional proposal. "I welcome the suggestions of President Vital do Rêgo, which I incorporate into my vote," declared Jhonatan de Jesus.
The matter was then put to a vote and approved by the board. The decision requires the Ministry of Finance to adopt concrete measures to strengthen the control and monitoring structure of financial operations carried out by betting companies operating in Brazil.
The TCU audit had as its jurisdictional units the Secretariat of Prizes and Bets, the Central Bank of Brazil, the Council for the Control of Financial Activities, and the Ministry of Finance, all directly involved in the regulation and supervision of the betting sector.
Watch the video of the rapporteur's vote.
