Esportes Gaming Brazil avoids federal ban by securing Loterj licence
Esportes da Sorte was notably absent from the federal regulator’s (SPA) list of approved operators last week, meaning they could not operate in Brazil before the 1 January market launch date, and would be considered an unlicensed operator until then.
However, state-regulator Loterj has said Esportes Gaming Brazil has complied with its legal and technical requirements and therefore meets their conditions for authorisation to operate under a state licence.
The domains of Esportes Gaming Brazil’s Esportes da Sorte and Onabet brands will replace ST Soft’s rj.apostou.com on the list of Loterj licensees in Rio de Janeiro.
It takes the tally of Loterj-approved brands to 12, with Esportes da Sorte and Onabet joining the likes of Caesars Sportsbook, VaideBet and Pixbet on the list.
Esportes da Sorte left off SPA’s list of approved operators
The SPA’s initial list included 89 operators. UOL reported Esportes Gaming Brazil had contacted the SPA seeking rectification, believing it had met the requirements to continue its operations during the transition period.
However, even after the SPA published its final updated list, Esportes da Sorte remained off the register.
Esportes da Sorte is one of a trio of companies, alongside VaideBet and Zeroumbet, embroiled in the federal illegal gambling and money laundering investigation, ‘Operation Integration’. The owners of all three companies were arrested in September.
Notably, VaideBet and Zeroumbet were also left off the SPA’s list of companies considered legal during the transition period.
Can Esportes da Sorte operate nationwide with a Loterj licence?
There is uncertainty however around whether Esportes will be able to operate nationally with a Loterj licence as a Federal Regional Court this week ruled Loterj does not have any jurisdiction outside of Rio de Janeiro.
The court’s president João Batista Moreira has banned Loterj-licensed operators from operating outside of state borders.
Moreira’s ruling followed an appeal from the attorney-general’s office (AGU) that aimed to reinstate the federal government’s abilities to regulate gambling across Brazil.
Loterj has argued its activities are protected by a law that predates the SPA’s regulations. Article 35-A of gambling regulations Law No 14,790 stipulates that licensees must follow law over ordinances or injunctions.
Loterj has reaffirmed its belief that its licensees will “continue to operate throughout Brazil” following the SPA’s publication of the list of federally-approved operators.