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Eight companies registered with Loterj to operate sports betting in Rio de Janeiro

At the end of the period stipulated by Loterj, eight companies present themselves to operate sports betting in Rio de Janeiro including big names such as 1XBET, Pixbet and Rede Loto The exploration will be by virtual means, with online access, via desktop or mobile (app), VLT (Video Lottery Terminal), POS (Point of Sales) or terminals. In Loterj's understanding, the commercialization itself may occur throughout Brazil.

This Friday (11th), at 6:00 pm, ended the deadline for accreditation of companies interested in operating sports betting with the Rio de Janeiro State Lottery. The last-minute race guaranteed the registration of eight companies, which will pay R$ 5 million (US$ 1.02m) for the five-year grant and remuneration of 5% on the GGR for Loterj.

The autarchy was even questioned by Caixa Econômica Federal (CEF) in court due to the adequacy of the Accreditation Notice to the guidelines defined by Provisional Measure 1,182/2023, which regulates sports betting in Brazil.

The main reason for the CEF's attempt to challenge refers to the issue of territoriality, since Loterj defined that accredited companies will have their operations based in Rio de Janeiro, but with the possibility of selling bets throughout the country.

Faced with the delay in regulation at the federal level, the bookmakers moved to apply their requests for accreditation in Rio de Janeiro, in view of the understanding of the autarchy, which was based, among other things, on the decision of the Federal Supreme Court that ended the Union monopoly on the exploitation of nationally authorized lottery modalities.

As it is headquartered in Rio de Janeiro, Loterj is only accrediting companies that will operate sports betting under an integrated system installed in the municipality itself, which would not exceed the territorial limits of Rio de Janeiro. Only the commercialization, in the understanding of Loterj, can happen in any place.

Even in the contestation of the appeal, Loterj highlighted what determines the federal law that provides for the ISS: “the service is considered rendered, and the tax due, at the place of the providing establishment or, in the absence of the establishment, at the provider's place of domicile.” That is, at Loterj's headquarters.

Thus, the following companies presented accreditation:

  • JBD - CAMPINA GRANDE/PB
  • LAGUNA - SÃO PAULO/SP
  • LEMA - SÃO PAULO/SP
  • PIXBET - CAMPINA GRANDE/PB
  • REDE LOTO - SÃO PAULO/SP
  • S.D.L. - NOVA LIMA/MG
  • ST SOFT - CAMPINA GRANDE/PB
  • 1XBET - CAXIAS DO SUL/RS

The system will be available in virtual media, with online access on a personal device or using mobile applications (APPs), web, VLT (Video Lottery Terminal), POS (Point of Sales), or Terminals/Totems.

All companies must pass the PoC - Proof of Concept, so that they can start their operations. So far, Pixbet and Rede Loto have already passed the tests.

It is expected in the next few days the disclosure of the results of the companies that have just applied for accreditation and that must comply with the requirements indicated in the Notice to submit their system and all documentation to the PoC.

Source: GMB