Rio’s State Lottery Licensing for Online Betting Faces Legal Scrutiny

Loterj, the Rio de Janeiro State Lottery, has ignited a legal debate by accrediting 4 online sports betting platforms to operate across Brazil. This move has prompted the Ministry of Finance to consider a lawsuit, as reported by Folha de S.Paulo.

The absence of geographical restrictions by Loterj allows these bookies to function nationwide, a decision that has been under legal scrutiny since last November. The Paraná State Lottery (Lottopar) is now seeking to join a class action lawsuit to challenge Loterj’s authority, alleging it bypasses national sports betting laws.

The 4 bookmakers granted licenses are Apostau.com, Bestbet, Marjosports, and PixBet, with three others — 1xBet, Lema, and Laguna — in the licensing pipeline.

At the heart of the debate is Article 35-A of Law 14,790, which Lottopar cites as a basis for limiting state lotteries to federally approved modalities. “This provision, as can be seen, already incorporates the principle of territoriality”, asserts Lottopar.

In defense, Loterj states, “Loterj maintains dialogue with all spheres of the public and private sectors, as well as oversight bodies, valuing a federative and democratic environment”, reflecting their stance on the issue.

Amidst this legal tangle, the Federal Government is still finalizing online betting regulations. Meanwhile, Rio de Janeiro and Paraná are proactively courting betting companies with incentives like lower licensing fees and revenue percentages. This has led the Ministry of Finance to urge restraint until federal laws are set, fearing inter-state conflicts over attracting bettors.