Federal Regional Court rules Loterj licensees cannot operate outside of Rio
The Federal Regional Court of the First Region (TRF1) in Rio de Janeiro has suspended the effects of a ruling that allowed brands licensed by the Rio de Janeiro State Lottery (Loterj) to operate outside of state borders.
TRF1 president João Batista Moreira overturned the effects of a Federal District Court ruling that allowed those operators with Loterj authorisation to be active outside of Rio de Janeiro.
The ruling relates to an appeal by the attorney-general’s office (AGU) which sought to restore the federal government’s right to regulate gambling across Brazil.
AGU’s appeal relates to a Supreme Federal Court injunction which last week authorised Loterj-authorised brands to operate outside of the federal ban on unlicensed operators, as laid out in Normative Ordinance No 1,475.
According to BNL Data, the AGU claimed the initial decision could limit the state’s power to enforce gambling regulation.
Allowing state-licensed brands to operate nationally may cause competition between regulators, the AGU said, harming player protections and resulting in conflicting regulations.
Loterj has not provided its licensees with specific regulations on anti-money laundering (AML) and counter-terrorism financing (CTF).
Loterj’s response
Despite the TRF1’s decision, Loterj claims the operations of the state lottery and its licensees won’t be impacted.
Loterj insists Article 35-A of gambling regulations Law No 14,790 supports its claims that Loterj operators are not required to follow ordinances or injunctions. It refers specifically to ordinances established by the federal gambling regulator, ahead of the legal market launching in January.
The paragraph states: “All concessions, permissions, authorisations or direct explorations promoted by the states and the Federal District based on authorisation procedures initiated before the publication of Provisional Measure No 1,182, of 24 July 2023 , are preserved and confirmed in their own terms.”
Loterj underlined the benefits in terms of the state contributions provided by its licensed sports betting operators.
“It is important to emphasise that [with the money] collected by the state of Rio de Janeiro with the legalised operation of betting, the union receives eight times more in taxes,” Loterj explained.
Loterj confident its licensees can “operate throughout Brazil”
Last week, the SPA published a list of companies approved to continue doing business during the transition period between 1 October and 31 December. Only those already active and with a licence application prior to an 11.59pm deadline on 30 September can continue to operate before 1 January.
Loterj confirmed the brands and domains of 11 companies that were licensed in Rio de Janeiro could remain live. These included Caesars Sportsbook, VaideBet and PixBet.
Following the publication of the state list, Loterj reiterated its belief that its licensees would be able to “continue to operate throughout Brazil” outside of federal regulations. It again cited legislation that “ensures Loterj’s position”.