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Some factions within the government, especially the Ministry of Finance, are resisting more drastic measures. The Ministry of Finance, responsible for regulating sports betting and online gaming, understands the sector’s importance to the economy. Finance Minister Dario Durigan’s difficulty lies in convincing Lula that a well-regulated activity is important for public finances. Lula has said, in line with critics of the sector, that if it were up to him, he would end betting in Brazil.

The president’s critical view of betting is on par with other candidates. Studies by the Workers’ Party (PT) indicate that three out of four Brazilians are against betting establishments. This is the president’s justification against the sector.

What the president didn’t address is the tax revenue from betting.

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Company creditors have alleged a shortfall of more than £1.3 billion ($1.7 billion), while administrators have accused Raja of orchestrating a scheme through which funds were systematically extracted from MFS and related entities.

A separate lawsuit brought on behalf of creditors alleges Raja received more than £408 million ($545 million) from funds managed by MFS into personal bank accounts across the UK, Monaco, Singapore, and the United Arab Emirates, according to The Telegraph.

Raja has also been accused of acquiring a fleet of luxury vehicles. The Telegraph reported these included six Ferraris, three Aston Martins, three Rolls-Royces, and two Mercedes-Benz vehicles.

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Both Richards and Ahlberg state this acquisition doesn’t reflect a turnaround story for 888Africa, with a management team led by industry veteran Christopher Coyne and a footprint in some of the continent’s fastest-growing markets.

“It has real market positions already, including a market-leading position in Mozambique and a growing presence in Angola and Tanzania, so we are buying established local relevance rather than starting from zero,” Richards continues.

“That combination of proven profitability, established market share and continuity of management materially reduces the execution risk you would normally associate with re-entering a consumer-facing business.”