Rio de Janeiro Investigates Destination of R$18.5m in Loterj Funds
Brazil.- 20 August 2026 | www.zonadeazar.com The Rio de Janeiro State Government is investigating what happened to R$18.5 million belonging to Loterj that had been held in custody by Rio Pag, a company contracted to process payments related to lottery and betting services.
The State Attorney General’s Office is preparing to seek access to the company’s banking records in order to reconstruct the movement of the funds and determine the origin of the money subsequently used to repay the principal amount.
Origin of the Dispute
Rio Pag was contracted following a procurement process carried out in March 2023 to process incoming and outgoing transactions connected to Loterj.
The agreement, which runs until 2028, pays the company 2.5% on each incoming transaction and 1% on outgoing transactions.
The dispute began after Loterj introduced a custody sub-account system in February 2025.
The measure followed problems involving a betting company accredited by the state that failed to meet contractual payment obligations and attempted to withdraw funds corresponding to Loterj’s remuneration.
Loterj Demanded Repayment
The custody model ended on 10 April 2026.
Loterj then demanded the return of the R$18.5 million accumulated in sub-accounts administered by Rio Pag.
The authority sent three formal requests for repayment.
After the third request, Rio Pag initially proposed repaying the money in instalments through 2028 and later submitted a second timetable extending payments until October.
Both proposals were rejected.
Court Ordered Up to R$20.9m to Be Frozen
In July, Loterj went to the Rio de Janeiro Court of Justice and obtained an order freezing up to R$20.9 million in Rio Pag financial assets.
The amount included contractual adjustments, interest and penalties claimed by the authority.
However, when the order was enforced, the National Council of Justice system identified only around R$726,000 in accounts covered by the measure.
The discrepancy between the expected funds and the amount located prompted the state authorities to deepen their investigation.
R$18.5m Has Since Been Returned
One week after the asset freeze, Rio Pag transferred R$16.5 million via Pix.
That payment followed an earlier R$2 million transfer made in June.
Together, the payments restored the full R$18.5 million originally held in custody.
Loterj, however, says repayment of the principal does not end the dispute.
Investigation into Movement of Funds
The State Attorney General’s Office now wants to establish where the money was held or moved during the period in which it was supposed to remain under custody.
Investigators also want to determine the exact source of the R$16.5 million transferred after the court order because that level of funds had not initially been located in the accounts reached by the judicial measure.
If the money was invested, the Government will also examine whether any investment returns should be transferred to Loterj.
Rio Pag Says Funds Were Invested
Lawyer Willer Tomaz, who represents Rio Pag, said the R$18.5 million had been invested in a Santander investment fund carrying a six-month redemption restriction.
According to that account, the restriction explains why the company was unable to return the funds immediately.
Loterj disputes the explanation, arguing that the contract did not authorise that type of investment and that the funds were supposed to remain available for withdrawal whenever requested.
Additional R$4m Dispute
Loterj also claims Rio Pag still owes approximately R$4 million in adjustments, late-payment interest and penalties.
The company disputes that interpretation, arguing that the contract contains no basis for those additional charges.
Rio Pag maintains that it has already returned the full amount originally placed under custody and that there was no default on its regular contractual payments.
Loterj Considers Contract Termination
Loterj’s current management is working towards terminating the Rio Pag contract, which was originally scheduled to remain in force until 2028.
For now, the dispute remains primarily within administrative and judicial channels.
However, state government officials have acknowledged that the findings could eventually lead to criminal proceedings.
Next Steps or Impact
The State Attorney General’s Office is expected to pursue measures aimed at obtaining banking information and reconstructing the complete movement of the funds.
Loterj will also continue determining whether additional amounts remain outstanding and whether any investment returns generated during the custody period should be recovered.
The case places both the payment-processing contract and the safeguards governing public funds linked to Rio de Janeiro’s lottery and betting operations under scrutiny.
Editó: @fonta
