STF Prohibits Loterj from Authorizing Bets Outside Rio de Janeiro

On Thursday (01/02), Justice André Mendonça of the Federal Supreme Court (STF) issued an injunction prohibiting bets authorized by the Rio de Janeiro State Lottery (Loterj) from operating outside the state’s borders. The decision came after a request from the Attorney General’s Office (AGU), on behalf of the federal government, to limit the operation of state-licensed betting platforms.

The controversy arose after Loterj, led by Hazenclever Lopes Cançado, amended its licensing rules in July 2023, allowing bettors from other states to access platforms licensed by the Rio de Janeiro agency. This move came just one day after the federal government introduced a provisional measure regulating online betting nationwide. Justice Mendonça deemed the move an “invasion of the Union’s exclusive authority.”

In addition to Rio de Janeiro, other states like Paraná, Paraíba, and Maranhão have also issued regional licenses for online betting, which are now under judicial review.

In 2024, the federal government established a dedicated department within the Ministry of Finance to regulate electronic betting. To date, 66 companies have been authorized to operate in Brazil, 52 of which have provisional authorization and must submit additional documentation within 30 days. These companies must comply with strict rules, such as identifying bettors to prevent minors from accessing the platforms and combating money laundering.

Justice Mendonça’s decision will be reviewed by the STF plenary at the end of the judicial recess. Meanwhile, new companies can apply for licenses, and the government will have 150 days to evaluate the applications. The regulation aims to create a safer and more organized online betting market across the country.