Zona de Azar Brazil – Brazil: STF Begins Trial on LOTERJ Case

Brazil.- February 18, 2025 www.zonadeazar.comSince last Friday, February 14, the Supreme Federal Court (STF) has begun the trial of Original Civil Action (ACO 3696), filed by the Office of the Attorney General (AGU) against the Rio de Janeiro State Lottery (LOTERJ), aiming to prevent the entity from offering sports betting outside the state of Rio de Janeiro.

The trial, which is taking place in the STF’s Virtual Plenary and is accessible to the public, will continue until February 21 and has already received three votes in favor of the AGU, cast by the case rapporteur, Minister André Mendonça, along with Alexandre de Moraes and Gilmar Mendes.

If the decision in favor of the AGU is confirmed, LOTERJ will have to comply with federal regulations and restrict its operations to the state of Rio de Janeiro.

In his vote, Mendonça argued that the state entity exceeded its limits by allowing online sports betting without geographical restrictions. LOTERJ countered that the case does not constitute a federal conflict and, therefore, should not be judged by the STF. However, Mendonça stated that the case deals with an issue that could “disrupt or interfere with the federal arrangement,” as it involves defining jurisdictional limits for lottery operations among federal entities.

The minister also pointed out that other states have challenged LOTERJ’s decision and supported the Federal Government’s arguments, claiming that the entity could be negatively affecting other jurisdictions.

Furthermore, Mendonça ruled that LOTERJ must cease sports betting operations outside Rio de Janeiro and cannot take any new actions that would allow accredited companies to operate in other states.

The minister emphasized that “LOTERJ encroaches on the jurisdiction of other states (and the Federal District) and, most importantly, infringes on the authority of the Federal Government.”

LOTERJ Suspends Operations Outside Rio de Janeiro

On Thursday, February 13, the lottery complied with the minister’s ruling and suspended the offering of online betting and gaming services outside the territorial limits of Rio de Janeiro until the final verdict from the STF.

Edited by: @_fonta www.zonadeazar.com