Zona de Azar Brazil – Brazil: Loterj Obtained an Important Legal Victory

Brazil.- July 2, 2024 www.zonadeazar.com Last Friday night (28), Loterj, the authority responsible for lotteries in the state of Rio de Janeiro, won an important legal victory.

Judge Pablo Zuniga Dourado, from the Federal Regional Court of the 1st Region, determined that Anatel must verify the legitimacy of betting houses to operate within the state’s limits.

Therefore, if bookmakers are in violation of state legislation, their activities must be suspended by the agency. However, the decision can still be appealed.

Context of the Loterj Dispute

The court decision also rejected the request of the National Association of Games and Lotteries (ANJL) to participate in the process as amicus curiae, a role reserved for entities that, despite not being parties to the process, provide information to the judge.

Last year, Loterj launched a notice for the accreditation of betting companies, generating controversy with other states and the federal government. This notice allowed companies to act upon payment of a grant of R$5 million, a value well below the R$30 million required by the Ministry of Finance.

Furthermore, companies could declare that they are in Rio de Janeiro, but operate throughout Brazil without meeting regional criteria. Loterj argues that its actions are supported by STF decisions.

Zuniga’s decision contradicts a previous ruling by the Federal Court of Brasília, which had denied Loterj’s request to block or suspend 115 betting platforms in Rio de Janeiro. At the time, the first instance judge understood that Loterj did not have the authority to make such a request and noted that the law on fixed quotas still needed regulation.

REACTIONS TO THE DECISION

The Federal Regional Court of the 1st Region, however, used the same law that provides for the “blocking of internet sites that violate current Brazilian standards” to reverse the first instance decision.

In a statement, ANJL, which represents 17 betting companies, expressed its position: “All operators must be notified in the appeal by Loterj before any order to remove websites from the air, thus guaranteeing the right to full defense and contradictory.”

ANJL also highlighted that Anatel must respect article 9 of law 14,790/23 and article 24 of Ordinance 827/24. Both grant a deadline of December 31, 2024 for all companies to obtain their licenses without any penalty in Brazil.

Edit: @_fonta www.zonadeazar.com