Online gambling in Brazil: Rio state lottery seeks to block list of approved operators

Loterj has filed a lawsuit that seeks to annul the new Brazilian gambling regulator’s decision.

Brazil.- The planned launch of regulated online gambling in Brazil is facing some last-minute headwinds. The new gambling regulator, the SPA, is up and running and processing licence applications ahead of the January 1 launch, but both legislative moves and lawsuits aim to put the brakes on an already long-delayed process.

On the legal side, Loterj, the Rio de Janeiro state lottery (Loterj), has lodged a federal lawsuit that seeks to annul the list of approved gambling operators drawn up by the new Brazilian gambling regulator, the SPA. The regulator had set an October 1 deadline for operators already active on the grey market to apply for licences in order to continue operating.

The regulator has allowed around 100 operators to continue after they submitted applications. However, Loterj argues that the process was invalid and the operators cannot be considered approved until they have paid the BRL30m (€4.7m licence fee) and gone through a public bidding process overseen by the Federal Supreme Court (STF).

Loterj argues that the operators have gained an unfair advantage in the market. It argues that its own licensees should be considered regulated and able to operate until the end of the year. Last month, it sought a preliminary injunction rejecting the prohibition of Loterj licensees beyond the limits of Rio de Janeiro state. Meanwhile, the federal government has argued that Loterj licensees lack a federal licence to operate outside of state territory.