Loterj ordered that the accredited 'Bets' - as operators are called in Brazil - to immediately cease the operation outside the limits of Rio de Janeiro. According to the ruling, only companies that prove that they provide geolocation tools, as determined by Mendonça, may operate in the state. The decision was published in the State Official Gazette this Thursday (13).
Since mid-January, Loterj has been trying to reverse the decision of Minister André Mendonça, who imposed a daily fine of R$500,000 (US$87,000) on the agency in case of non-compliance with the decision. The president of Loterj, Hazenclever Lopes Cançado, was ordered to pay a fine of R$50,000 (US$8,700) per day if he did not comply with the STF decision.
In the lawsuit filed by the Attorney General's Office (AGU), the government stated that Loterj's actions would open the door for other states to follow the same example, accrediting companies without the regulatory measures imposed by federal regulations, which could “impact cybersecurity, responsible gaming, the financial health of operators and the fight against money laundering.”
The 'Bets' accredited by Loterj in Rio de Janeiro paid R$5 million (US$867,000) in concession fees and the Accreditation Notice allowed them to operate nationwide, since the consolidation of bets would take place on the autarchy's server, installed in Rio de Janeiro. The federal concession fee was set by the government at R$30 million (US$5.2m).
At the same time, while the variable concession fee set by the Ministry of Finance for sports betting and online gaming companies was set at 18% of the GGR, the same fee in Rio de Janeiro was set at 5%.
STATE LOTTERY OF RIO DE JANEIRO
PRESIDENTIAL ACT
LOTERJ/GP ORDINANCE No. 658 OF FEBRUARY 12, 2025
REGARDING THE COMPLIANCE WITH THE PRELIMINARY INJUNCTION ISSUED IN THE ORIGINAL CIVIL ACTION No. 3.696 BY THE SUPREME FEDERAL COURT (STF) AND OTHER MEASURES.
The PRESIDENT OF THE STATE LOTTERY OF RIO DE JANEIRO, in the exercise of his legal powers and in compliance with the preliminary injunction issued by the Supreme Federal Court in Original Civil Action No. 3.696, RESOLVES:
Article 1 – To order the immediate suspension of the effectiveness of the provisions contained in the Rectification of the Accreditation Notice No. 01/2023, published on July 26, 2023, particularly those that amended the following items: 7.1.6.2, letter "e"; 8.9; 9.2.1.5, letter "a", sub-item vi; and 9.2.1.5, letter "c", sub-item iv.
Sole Paragraph – With the suspension hereby determined, the mandatory use of electronic geolocation mechanisms is reinstated to ensure that bets are placed exclusively within the territorial limits of the State of Rio de Janeiro.
Article 2 – To order the immediate cessation of lottery and electronic gaming activities by accredited companies that fail to prove the adoption of effective measures to ensure compliance with the territoriality criteria established in the judicial decision.
Sole Paragraph – Accredited companies must immediately prove compliance with the measures hereby established, under penalty of suspension of their operating authorization in case of non-compliance, as well as other penalties stipulated in the Accreditation Notice No. 01/2023.
Article 3 – This Ordinance takes effect on the date of its publication and shall remain in force as long as the effectiveness of the preliminary injunction issued in Original Civil Action No. 3.696 persists.
Rio de Janeiro, February 12, 2025
HAZENCLEVER LOPES CANÇADO
President
Source: GMB
