Zona de Azar Brazil – Brazil: LOTERJ Appeals Rejected in Geolocation Case

Brazil – January 8, 2025 – www.zonadeazar.com This Monday, January 6, Supreme Federal Court (STF) Justice André Mendonça rejected the declaration appeal filed by the State Lottery of Rio de Janeiro (LOTERJ) in the Original Civil Action (ACO) 3696.

The decision requires LOTERJ and the state of Rio de Janeiro to stop receiving fixed-odds sports bets placed outside their territorial boundaries. The order must be implemented within five days, with the mandatory reintroduction of geolocation mechanisms.

LOTERJ had challenged the requirement to use geolocation to ensure bets are placed only by individuals located or residing in Rio de Janeiro, as stipulated by federal law (Law No. 13,756/2018, amended by Law No. 14,790/2023).

In his analysis, Justice Mendonça reiterated that clarification appeals are only applicable in cases of ambiguity, contradiction, omission, or to correct material errors. “However, in this case, there is no defect that needs to be corrected. The integrative argument merely reflects dissatisfaction with the appealed decision,” said the minister.

The central issue in the dispute revolves around the revision of Accreditation Notice No. 01/2023. According to the justice, the notion that a bettor’s declaration would suffice to consider the bet as placed within the State of Rio de Janeiro creates a “fiction regarding territorial boundaries” and violates Article 35-A of Law No. 13,756/2018.

Geolocation and Territorial Jurisdiction

Although the law does not explicitly require geolocation technology, Mendonça emphasized that §4 of Article 35-A stipulates that bets must be restricted to individuals physically located or residing within the state territory. According to him, this regulatory requirement underscores the necessity of georeferencing to ensure compliance with territorial boundaries.

“By failing to adopt a geolocation system, the notice violated Article 35-A, enabling the exploitation of electronic games outside Rio de Janeiro, a blatant encroachment on the exclusive jurisdiction recognized by the Union,” he explained.

Appeals Rejected

The justice criticized LOTERJ’s appeal, describing it as mere noncompliance with the decision. He also dismissed the possibility of modulation, arguing that such a measure would perpetuate the federal conflict. “Accepting this request would indirectly allow the continued violation of Article 35-A of Law No. 13,756/2018,” he concluded.

The decision reinforces the Union’s authority to regulate lottery activities and establishes an immediate deadline for the State of Rio de Janeiro to comply with the court’s orders.

Edited by: @_fonta
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