SPORTS BETTING
Brazil – Loterj looking to block unlicensed operators
By James - 30 April 2024
The State Lottery of Rio de Janeiro (Loterj) has filed a precautionary measure before a federal court to request a court order directing the National Telecommunications Agency (Anatel) to block operators without a state licence from operating in the state. These sites have not obtained a state license and, according to Loterj, are operating illegally as they are offering sports betting in the territory of Rio de Janeiro.
Loterj argues that these sites violate federal and state legislation and expose citizens to risks, as well as compromise public and economic order. However Anatel responded that it can only act to block websites through a court order. In response to Loterj’s request, the court ordered the Federal Prosecution Office to provide a position on the case before issuing a decision.
Caio de Souza Loureiro, partner in the Gaming & E-sports area of law firm TozziniFreire Advogados, told local news portal InfoMoney that the request lacks legal foundation as it is derived from a State Decree, which cannot override Federal Law.
“There is no legal basis for the request, as it is based on a State Decree, which can never supersede Federal Law. The measure is another attempt by Loterj to disrupt the progress of federal regulation,” he said. Loureiro also emphasised the fact that the Federal Supreme Court (STF) ordered the breaking of the Union’s monopoly and allowed States to also explore lottery services – sports betting was categorised as a lottery in the decision. “The primacy of the Union to legislate on the matter is clear,” he said.
In September 2020, the STF ruled that the federal government’s lottery monopoly was unconstitutional, paving the way for states to develop state lotteries for each of Brazil’s 26 states and one federal district as long as they complied with federal regulations. The STF decision meant that states could begin to roll out their own lottery products within their own state borders including sports betting.
Law 14,790/2023 granted bookmakers that already operate in Brazil a period of 180 days to adjust to the new regulations from the Ministry of Finance. The recently established gaming board Secretaria de Prêmios e Apostas no Ministério da Fazenda (SPA) has published an ordinance outlining the steps it will take over the coming months in order to establish the framework for regulating online gambling. The agenda is divided into phases to address key topics. Published in the Official Gazette, the new Ordinance outlines the guidelines that SPA will follow and establishes a schedule for the implementation of measures by the end of the first semester of this year.
