Loterj ‘remains firm’ in case against federal government, president insists licensees can operate nationally

Lopes Cançado said it “remains firm” in its belief its licensees should be allowed to operate nationally in Brazil, despite a number of court injunctions ruling the entity is not abiding by federal regulations.

Loterj’s capability to award sports betting tenders to its licensees predates the federal government’s current online gambling regulations, which came into force last year.

Its first sports betting tender was issued in July 2023, a year and a half before Brazil’s federal legal betting market launched in January 2025.

But, a month into the new market, Brazil’s Supreme Federal Court (STF) voted to uphold a preliminary injunction preventing Loterj from its licensees operating nationwide under pressure from the attorney general’s office.

The court insists Loterj licensees can only offer bets within the state of Rio de Janeiro. In its latest ruling, the STF demanded Loterj lottery and betting licensees install geolocation tracking to ensure they are only operating betting within the state.

Lopes Cançado describes the situation as “artificial and technically unsustainable”. He says Loterj licensees generate positive social change throughout Brazil through their funding of state departments.

“These revenues, generated by local lotteries … finance actions in health, education, sports and social assistance, especially for those who need them most. Interfering in this cycle of progress is penalising the vulnerable population.”

He reiterates the state lottery body is “fully committed to following its mission and ensuring that its licensed operators can operate throughout the national territory”.

Does the preliminary status of the injunction give Loterj hope?

Lopes Cançado stresses the STF’s injunction on Loterj’s activities is only preliminary.

He has faith the STF will ultimately rule in favour of Loterj, instead of making the current measures under the injunction permanent.

“The STF decision is, for now, only a preliminary injunction,” Lopes Cançado notes. “This restriction not only harms the competitiveness of the sector and the revenue of the states, but it also does not reflect the reality of the digital environment, which, by its very nature, knows no physical borders.

“I am confident that, when the case is analysed in more depth, the need for a more modern, fair and efficient regulatory model for all will prevail.”

Lopes Cançado sees Loterj as a “leading disruptor” in the Brazilian betting and lottery market and doesn’t feel the STF’s preliminary injunction and ongoing legal uncertainty will affect operators’ confidence in the state lottery.

“Loterj is not shaken. We remain firm, because we have what many still seek: credibility, legality and total transparency.

“We act with technical rigour, within the law and with absolute commitment to the public interest. And it is precisely for this reason that confidence in Loterj only grows – among partners, institutions and, mainly, among the population.”

Unfair competition from illegal operators a key concern

A common theme since Brazil launched its federal online market is the still thriving illegal market.

The Loterj president believes the impact of the black market is leading to reductions in state revenues that could finance public policies, while also discouraging investment in the licensed market and exposing players to the perils of illegal operators.

Lopes Cançado calls for a “coordinated approach” from the government to tackling the issue.

“Without a coordinated approach, the regulated market runs the risk of losing competitiveness in the face of an environment of informality that is growing out of control,” he says.

The future for Loterj

Loterj has taken strategic steps this year to bolster its land-based offering, by establishing an internal committee in April to conduct research and technical studies on video lottery terminals.

“We are focused on consolidating Loterj’s role as a responsible, efficient and transparent institution that contributes significantly to the social, cultural and economic development of the state of Rio de Janeiro,” Lopes Cançado concludes.

“Loterj’s long-term vision is to be a reference institution in the lottery sector, with a strong social commitment and efficient management, promoting collective well-being and the development of the state of Rio de Janeiro, while adapting to market transformations and facing global challenges with innovation and responsibility.”