The decision of the TRF-1 revokes the authorization that had been granted by the first instance to betting sites that intended to operate nationally without going through the process initiated by the Ministry of Finance. The licenses for Rio remain valid.
The national regulatory process will be effective as of January 1, 2025.
In his decision, the judge emphasizes that gambling addiction should be viewed in the same way as other addictions that affect the health of the population, such as smoking:
"The same justification applies to the state monopoly on gambling or the production and sale of alcoholic beverages. It is a control activity, which is therefore more suited to being classified as an administrative police force than a public service. The same reasoning applies to the lottery."
In a statement, Loterj stated that the decision does not change its operations or those of its accredited entities.
Read the full text below:
The Lottery of the State of Rio de Janeiro (Loterj) informs that the recent decision by the Regional Federal Court (TRF) does not change its operations or those of its accredited entities in any way. Loterj's operations continue to be supported by paragraph eight of article 35-A of Law 14,790, and not by ordinances or injunctions.
The TRF1 merely suspended the effects of the decision related to the ordinances of the Prizes and Betting Secretariat (SPA) of the Ministry of Finance, which will only have an impact from January 2025, until the judgment of the appeal filed by the Union.
With regard to sports betting ('Bets'), Loterj highlights that it is currently the only source of revenue for the Union, since the companies listed by Secretary Régis Dudena remain exempt from any tax collection. These companies did not have their license applications analyzed, did not pay the grant, are not collecting taxes and there is no forecast for analyzing these processes.
It is important to emphasize that, for every real collected by the State of Rio de Janeiro with the legalized operation of betting, the Union is granted eight times more in taxes.
Finally, unlike the Union, Loterj immediately applies the control restrictions, while the Union has been allowing the operation of bets by companies headquartered in tax havens, without any criteria or control.
Source: GMB
