Zona de Azar Brasil – Brazil: Union Seeks to Prevent Loterj from Authorizing Online Betting Nationwide

Brazil – February 20, 2025  www.zonadeazar.com Minister Dias Toffoli requested a review and interrupted the judgment of the Original Civil Action (ACO 3696) in the Virtual Plenary of the Supreme Federal Court (STF) this Tuesday (18). The action, filed by the Union, seeks to prevent the State Lottery of Rio de Janeiro (Loterj) from authorizing online sports betting companies nationwide.

Before the review request, Ministers Gilmar Mendes and Alexandre de Moraes had already voted. Both agreed with the individual decision of the rapporteur, André Mendonça, who suspended Loterj’s national operations.

Minister André Mendonça

Information About the Trial

With the temporary suspension of the trial, André Mendonça’s preliminary decision remains in effect. Toffoli has up to 90 days to return the case to the Plenary but may do so earlier.

The trial in the Virtual Plenary was initially scheduled to take place between February 14 and 21, 2025.

In his vote, André Mendonça upheld the preliminary decision from January 2. He reiterated the suspension of lottery and online gaming operations outside the territory of Rio de Janeiro. Additionally, he reinforced the requirement for electronic geolocation mechanisms.

El ministro Dias Toffoli 

According to the rapporteur, the action raises questions about the jurisdictional limits between the State of Rio de Janeiro and the Union in the management of this public service. The case now awaits Toffoli’s analysis before the trial can resume.

Loterj Suspended Online Betting Outside Rio Following STF Decision

The State Lottery of Rio de Janeiro (Loterj) suspended its online betting services outside the state last Thursday (13). The measure complied with an order from Supreme Federal Court (STF) Minister André Mendonça in a case filed by the Attorney General’s Office (AGU).

Therefore, the STF required companies accredited by Loterj to cease operations outside Rio de Janeiro. Only platforms that could prove they operated within the state’s boundaries through geolocation mechanisms were allowed to continue. The decision was published in the Rio de Janeiro State Official Gazette.

André Mendonça upheld the prohibition of Loterj’s operations outside the state, under a daily fine of R$ 500,000 for the agency. Loterj’s president, Hazenclever Lopes Cançado, would also face fines of R$ 50,000 per day in case of non-compliance.

In an article published on the Migalhas portal, Cançado stated:

“The legal uncertainty in Brazilian betting exposes regulatory weaknesses, unfair competition, and bureaucracy that hinder the market and harm the economy.”

The AGU argued that Loterj’s operations allowed other states to challenge betting sector regulations. This could impact cybersecurity, responsible gambling, the financial health of operators, and anti-money laundering efforts.

It is worth noting that in 2024, Loterj published a call for proposals to accredit betting companies, requiring R$ 5 million per license. In contrast, the Ministry of Finance set the fee at R$ 30 million.

Editor: @_fonta
www.zonadeazar.com