Brazil’s Federal Regional Court of the 1st Region has reaffirmed the authority of Rio de Janeiro’s lottery regulator, Loterj, to oversee sports betting and online gaming within the state. The court rejected a federal attempt to impose additional licensing requirements, securing the rights of state-regulated operators.
The court’s 6th Panel dismissed an appeal from Brazil’s Attorney General’s Office (AGU), which argued for federal accreditation of Loterj-licensed operators. This ruling allows Loterj operators to operate under state-issued licenses without interference from federal ordinances.
Federal Accreditation Requirements Suspended
The Ministry of Finance had previously issued ordinances requiring all betting operators to secure federal licenses by September 30, 2024. These measures aimed to centralize oversight of advertising and unregulated platforms. However, the court’s decision exempted Loterj-licensed operators, provided they comply with Rio de Janeiro’s regulatory framework.
The ruling emphasized, “Loterj licensees have the ‘broad and unrestricted right’ to continue operating fixed-odds online betting regardless of federal regulations.”
This decision aligns with the Supreme Federal Court’s 2020 verdict, which declared federal monopolies on lottery regulation unconstitutional. That ruling empowered states to create their own systems, enabling Loterj to accredit operators under Federal Law No. 13.756/2018.
Loterj introduced its licensing system in April 2023. Under its terms, operators must pay an upfront fee of R$5 million (approximately $830,000) and contribute 5% of profits for up to five years. Operators are also required to meet tax obligations.
The court added, “The ordinances blatantly violate Law No. 13,756/2018, which preserves previous legal acts.”
Industry leaders welcomed the court’s ruling, viewing it as a significant win for state-level regulation. While the decision secures Loterj’s operations in Rio de Janeiro, the agency continues efforts to expand nationally. These efforts include countering federal restrictions, such as GPS-based betting limits and bans on inter-state operations.
The ruling highlights the growing strength of Brazil’s state-regulated betting market, as regional authorities assert their independence amid evolving federal policies.
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