Zona de Azar Brazil – LOTERJ States It Will Appeal TRF1 Decision to Unblock Betting Sites

Brazil.- August 16, 2024 www.zonadeazar.com The Rio de Janeiro State Lottery (LOTERJ) announced that it will appeal the decision made by Judge Pablo Zuniga Dourado of the 11th Panel of the Federal Regional Court 1 (TRF1), which removed the block on betting sites operating without the agency’s license.

According to LOTERJ, the deadlines for the adaptation of betting companies provided by law do not equate to “a license for the illegitimate exploitation of the market.”

In a statement, the agency affirmed that “the thesis that the exploitation of lottery services can be conducted clandestinely until federal regulation is completed is unconstitutional.”

LOTERJ believes that state sovereignty must be preserved and upheld if there is specific regulation in place, as is the case in Rio de Janeiro.

“It is known that this activity is associated with tax evasion, and the companies that exploit it are mostly based in tax havens. The adaptation of the aforementioned article is to ensure these companies comply with regulations,” LOTERJ emphasized.

Understanding the case: Loterj seeks to prevent unlicensed operators from operating in Rio de Janeiro

LOTERJ filed a lawsuit seeking a court order to require the National Telecommunications Agency (ANATEL) to block betting sites that lack the agency’s license.

In late June, TRF1 partially granted LOTERJ’s request, authorizing ANATEL to verify whether betting and online gaming operators in Rio de Janeiro have the legitimacy to operate in the state.

The National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) have expressed dissatisfaction with TRF1’s decision.

“In addition to potentially leaving millions of players without access to over a hundred betting platforms overnight, the decision violates basic legal principles, with the main ones being the right to a full defense and the right to a fair trial,” ANJL stated in an official communication.

The association also highlighted that the blocking order was issued without the companies being heard, claiming there is a “scenario of dangerous legal uncertainty,” as federal regulation overrides state legislation and the agency’s licensing notice.

For ANJL, “the decision and the order’s enforcement, unfortunately, do not respect these principles.” In other words, the State of Rio de Janeiro is disrespecting the rules of the Union.

Furthermore, the IBJR stated that state court decisions could hinder the effective progress of regulation, which is being conducted at the federal level. The institute expressed concern over the decision, as it disregarded the Union’s stance and the Ministry of Finance’s Prizes and Betting Secretariat (SPA).

In the statement, the IBJR mentioned that the granting of the injunction would violate the national transition regime and the constitutional competence of the Union.

Edited by: @_fonta www.zonadeazar.com