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Loterj responds to Brazilian Institute of Responsible Gambling

By - 2 April 2024

The Rio de Janeiro State Lottery (Loterj) has released an official statement in response to The Brazilian Institute of Responsible Gaming (IBJR). The IBJR issued a statement outlining its stance regarding the regarding the recent conflict involving the Ministry of Finance and the lottery of the state of Rio de Janeiro (Loterj).

The IBJR criticised the actions of Loterj in a statement saying that: “Requiring bettors to declare that their bet is placed in the State of Rio de Janeiro, regardless of their domicile or actual location, makes no logical or legal sense.”

However Loterj has responded in a statement arguing that its actions are entirely within the scope of the powers granted to it by the Supreme Court:

“The Brazilian Institute of Responsible Gambling is mistaken in its criticism of Loterj, especially regarding the accreditation of online sports betting operations, as the State of Rio de Janeiro has taken the lead and already has a legal regulatory framework, unlike the Union, which has not yet regulated the form of exploitation of legally established modalities.

“Regarding the possibility for states to accredit and define the mode of operation of companies, the Institute itself acknowledges that the Supreme Federal Court (STF) recognized the competence of the States and the Federal District to exploit lotteries, characterized as a public service.”

Loterj went on to argue that:

“The sale of products of the Rio de Janeiro State Lottery – LOTERJ, within the scope of accreditation for the exploitation of a public service through the Internet, does not exceed the territorial competence limit of the Agency, especially because, in the case of a virtual service modality, there is no trespass of the state limit, with the activity being entirely concentrated in the territory of Rio de Janeiro.”

In September 2020, the Supreme Court of Brazil (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. Sports betting was categorized as “sports lotteries’ in 2018 via Law No. 13,756 which was signed by then President of Brazil, Michel Temer in 2018. It legalised sports betting on a federal level although regulations weren’t put in place over the industry until now. The STF decision meant that states could begin to roll out their own lottery products within their own state borders including sports betting.

The Brazilian Institute of Responsible Gaming (IBJR) was established in March 2023 to unite some of the leading global brands in the sports betting sector, which have joined forces in Brazil to contribute to the discussion and development of the national gambling market. Bet365, Flutter, Entain, Betsson Group, Betway Group, Yolo Group, Netbet Group, KTO Group and Rei do Pitaco are the founding operators of the entity.

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