Zona de Azar Brazil – Brazil: Loterj and Lottopar in a Dispute with Google

Brazil.- January 10, 2025 www.zonadeazar.com The presidents of Loterj (Rio de Janeiro State Lottery), Hazenclever Cançado, and Lottopar (Paraná State Lottery), Daniel Romanowski, are in a dispute with Google over the platform’s online gambling ad policy. Currently, Google only accepts ads from companies licensed by the Ministry of Finance, which are permitted to operate nationwide. This policy was implemented on January 1, 2025, following the model applied by the company in other countries.

The state lottery leaders disagree with this rule and sent formal letters to Google in December 2024, demanding changes. Cançado and Romanowski are urging the platform to accept ads from operators authorized by their respective state lotteries. Hazenclever proposed a revised wording for Google’s ad policy, while Daniel Romanowski even threatened to sue the company if changes are not made.

Google justifies its policy by emphasizing the prioritization of federal licenses to ensure uniformity and compliance with local and international laws. “Only advertisers certified by the Ministry of Finance and holding the necessary Google Ads certification will be allowed to operate on our platforms,” stated the tech giant in a release.

State lotteries like Loterj and Lottopar are authorized to grant regional licenses to gambling operators. However, these licenses are more financially accessible, costing between R$2 million and R$5 million, while federal licenses cost R$30 million.

Judicial Ruling Supports the Federal Government’s Position

Supreme Court Minister André Mendonça recently suspended the operation of gambling services licensed by Loterj outside Rio de Janeiro state. The ruling came after a request by the Attorney General’s Office (AGU), arguing that allowing state-licensed gambling operators to run nationwide operations infringed on federal jurisdiction. Mendonça’s decision also mandated the implementation of geolocation mechanisms to restrict these operations to their authorized state territories.

At the end of 2024, the Ministry of Finance announced the approval of 15 gambling operators to operate permanently in Brazil, along with temporary authorizations for 52 additional companies. These approvals are part of the federal regulation process aimed at organizing the market and raising R$2.1 billion in licensing fees. For state lotteries, Google’s restrictions limit the reach of their licensed gambling services. Conversely, the federal government’s position seeks to centralize control and prevent jurisdictional conflicts.

So far, Google has not indicated that it will change its ad policy. State lotteries have vowed to continue pressuring the company, even through legal action, to increase the visibility of their licenses. The outcome of this dispute will have significant implications for Brazil’s gambling market, which is in the midst of regulation and attracting increasing interest from companies seeking to operate in the country.

Edited by: @_fonta
www.zonadeazar.com