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Brazil – State of Rio de Janeiro tightens online betting rules 

By - 27 November 2023

The government of the State of Rio de Janeiro is clamping down on authorised operators in the state and has put in place further regulations designed to safeguard players. The new measures were published in the Official State Gazette via decree and further established the conditions for sports betting authorized by the Lottery of the State of Rio de Janeiro – LOTERJ.

The decree, issued by the governor of the State of Rio de Janeiro Claudio Castro, restricts the state sports betting market to only those companies authorized by the state. It also put in place restrictions on advertising in order to prevent gambling related harm and bans advertising from unlicensed sports betting platforms.

Only those operators authorised by Loterj or the Federal Union are allowed to advertise in the state and the advertising of unauthorised online betting platforms is banned. In addition, according to the decree, all advertising related to gambling must include warnings over gambling related harm in order to help prevent gambling addiction, while advertising to minors must be prevented.

Internet providers on receiving administrative notification from the State Lottery will have just 48 hours, to block access to unauthorised online betting platforms sites. In addition, any payment service providers, once given notice from Loterj must stop providing payment services to unauthorised platforms within 48 hours as well. The new decree puts in place penalties for non-compliance.

The state of Rio de Janeiro has been one of the pioneers in opening up the local lottery and sports betting market. In April 2022 Loterj announced that it would hold a hearing on how instants and sports betting could be operated in the state. The lottery stated it would include both online and retail lottery outlets. In May this year Loterj published the requirements for companies interested in competing for the licence to run and develop fixed-odds online and land based sports betting.

In return operators must pay a payment of R$5m as a fixed fee, plus 5% 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.

Loterj authorized the first company to operate online sports betting in Brazil in X.  Rede Loto through Loto Carioca headquartered in São Paulo was granted the five year licence for a value of R$5 million.

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