Rio de Janeiro State Lottery Makes History with Granting of First Online Sports Betting License

The Rio de Janeiro State Lottery (LOTERJ) has made an important step forward in the field of sports betting by releasing its first contract for accreditation and authorization of public lottery services. This agreement with Rede Loto allows for the exclusive operation of competitive virtual sports betting. Through authorization with the Federal Government, LOTERJ becomes the first state lottery in Brazil to accept sports betting. The five-year pact opens the door to virtual platforms and diverse retail venues, ushering in a new era for LOTERJ and the expansion of online betting in the state.

Acceptance of Virtual Sports Betting

The agreement between LOTERJ and Rede Loto lays the path for the virtual operation of fixed-odds sports betting. Personal devices, mobile applications, web interfaces, Video Lottery Terminals (VLTs), Point of Sale (POS) systems, and Sports Betting Terminals will provide customers with access to online platforms. The deal also allows for the sale of sports bets through physical points of sale, retail stores, outposts, and sports bars, offering bettors across the state with ease and accessibility.

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Setting a New Standard in Accreditation

The contract signing between LOTERJ’s president, Hazenclever Lopes Cançado, and Rede Loto’s agent, Paulo Roberto Melo de Castro Nogueira, marks a historic milestone for LOTERJ. The Federal Government’s accreditation establishes LOTERJ as a pioneer in the country, unleashing the potential for a regulated and secure sports betting market.

Financial Commitments and Operations

Rede Loto, located in So Paulo, will pay a fixed price of BRL$ 5 million ($1 million) as part of the arrangement. The payment of this subsidy is required before service provision may begin. Rede Loto has five business days from the start of the Accreditation Agreement to meet this financial requirement. Furthermore, by the fifth business day of the next month, the operator must pay a variable charge equal to 5% of Gross Gaming Revenues (GGR). Once these financial conditions are completed, the company can begin operations immediately.

Preparation and Adherence

Through rigorous technical verification and compliance steps, Rede Loto has shown its ready for the start of online sports betting. During the Proof of Concept (PoC) review, the company’s online betting system met all of the relevant standards. This certification process proved compliance with corporate social responsibility, security, data integrity, and Brazil’s General Data Protection Law (LGPD). Furthermore, the PoC validated compliance and risk management in operational activities, assuring the execution of an Integrity Programme in accordance with applicable legislation.

Payment Methods and Social Responsibilities

Rede Loto will collaborate with PIXS Cobrança e Serviços em Tecnologia S.A. to provide payment processing services for LOTERJ lottery goods. PIXS will earn a 2.5% entry and 1% departure commission, while LOTERJ will receive 26.455% of total sales. In accordance with social responsibility, the contract requires Rede Loto to fill 2% to 5% of its workforce roles with rehabilitated or disabled beneficiaries, based on total employee numbers.

Looking Forward to a Bright Future

Rede Loto is preparing to debut its virtual sports betting services under the brand name Loto Carioca, as well as a marketing campaign with a well-known soccer player as its spokesperson. This strategic move intends to attract both sports fans and bettors, while also strengthening LOTERJ’s presence in the ever-changing online betting environment.

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