The two organizations complain that the companies were not heard in the process. They also assess that the decision contradicts the federal law regulating the sector, approved in Congress last year. The new legislation established a transition deadline of December 31, 2024.
“The scenario we face shows the fragility of the business environment in Brazil. At a time when a new production chain begins to be created in Brazil, with the prospect of raising more than R$1 billion in grants alone, the situation created by Loterj challenges the authority of the federal government. We hope that some effective and definitive measure will be implemented as soon as possible,” IBJR president André Gelfi told Coluna do Estadão.
He also highlights that the betting market in Brazil has hundreds of operators, and the decision prohibits the activities of only a few companies, “generating a clear situation of unfair competition.”
Loterj launched a notice last year to license betting companies in the state, with a grant payment of R$5 million and says it is supported by decisions of the Federal Supreme Court (STF). The value is much lower than the grant established by the Ministry of Finance of R$30 million.
“Federal regulation, obviously, overrides the legislation of the State of Rio de Janeiro and the Loterj accreditation notice,” the National Association of Games and Lotteries said in a statement.
“The Federal Supreme Court decided that the exploitation of lotteries is not exclusive to the Union, and can also be exercised by the states and the Federal District, but the regulatory power belongs only to the Union. In other words, the State must respect the Union's rules. And not misrepresent them,” it added.
Anatel said it only complies with the Court order.
Source: Estadão's column, by Roseann Kennedy
