Legislation
Brazil – State of Rio de Janeiro launches call for tender
By James - 2 May 2023
The Rio de Janeiro lottery authority (Loterj) has published the requirements for companies interested in competing for the license to run and develop fixed-odds online and land based sports betting. The tender also covers video lottery terminals, point of sale terminals at retail locations as well as sports betting terminals which will be permitted in sports bars throughout the state
In return operators must pay a payment of 5 million reais ($992,000) as a fixed fee, plus 5 per cent of gross revenue (GGR) per month. In addition the operator must also incorporate responsible gambling measures, have systems in place to reports suspicious transactions and be able to ensure that sports betting on Loterj’s platform is limited to state boundaries.
During the tender, a “Proof of Concept” (POC) will be carried out in person at the Loterj Headquarters (a POC is a demonstration of an idea or service to verify its feasibility). Once this step has been taken, successful companies will then be able to take part in the tender.
Rio de Janeiro has the second largest economy of Brazil (after São Paulo). The Rio lottery has been present since the 1940’s. In May 2021 LOTERJ published the public call for tenders for a company to provide a wide range of lottery products including instant lotteries and fixed odds sports betting (online or landbased), within the state but in November LOTERJ postponed the tender. However in April 2022 (Loterj) announced that it would hold a hearing on how instants and sports betting could be operated in the state both online and via lottery outlets.
The state has played a huge part in the opening up of the sports betting and lottery market in Brazil. In September 2020, the Supreme Court of Brazil ruled that the federal government’s lottery monopoly was unconstitutional.
The ruling came after the state of Rio de Janeiro took the federal government to the Supreme Court of Brazil when the federal government directed the state to shut its lottery operations after the lottery began to offer new games. Attorney General of the State of Rio de Janeiro argued that due to the closure of the Rio de Janeiro State Lottery (Loterj) in 2017, they would lose more than $3.5m per year.
