AGU appeals Loterj’s request against blocking of betting sites
Written by :
Heloisa Vasconcelos
This Monday, the Attorney General’s Office (AGU) filed an appeal against the preliminary decision of the Federal Regional Court of the First Region (TRF1) , which ordered the blocking of more than one hundred online betting sites in Rio de Janeiro .
The TRF1 decision argued that betting companies would need authorization from the Rio de Janeiro State Lottery (Loterj) to operate in the state. In the appeal, which O Globo had access to, the AGU maintains that the regulation of the betting market is a competence of the federal government.
The previous week, the National Telecommunications Agency (Anatel) accepted the injunction issued by Judge Pablo Zuniga Dourado on June 29, and asked telephone operators to block 115 betting platforms in the state .
Currently, only five bookmakers are licensed in Rio de Janeiro: Apostau RJ, BestBet, MajorSports, Rio Jogos and PixBet. Together, these platforms paid out more than R$2.3 billion in prizes to bettors up until last month, according to data from Loterj.
In 2023, Loterj launched an accreditation notice, establishing rules so that online betting companies can operate in the state upon payment of a grant fee of R$5 million , in addition to 5% per month of Gross Gaming Revenue (GGR), which is gross revenue minus prizes paid to players.
This amount is considerably lower than the R$30 million concession fee set by the Ministry of Finance, which is developing the regulation of the betting market. In addition, the tax on GGR will be higher under federal regulations, set at 12%.
Although other states are also creating their own regulations for betting companies, Rio de Janeiro is the only state that accredits platforms to operate in other parts of the country .
Ministry of Finance Deadline
Under the government’s plan, online gambling operators will be allowed to continue operating until December 31 , the deadline to apply for authorization and demonstrate compliance with legal requirements. The regulated market will come into effect on January 1, 2025.
The regulations proposed by the federal government include stricter rules, such as mechanisms to prevent money laundering and game time limits, among other measures.
In its appeal against the TRF1 decision, the AGU argues that the responsibility for regulating the fixed-odds betting market lies with the federal government. This type of bet allows the player to know the value of the prize at the time of the bet , calculated based on the probabilities of each outcome.
“Apparently, the Rio de Janeiro State Lottery – Loterj confuses the legislative competence of the Union on the subject with the material competence of the State of Rio de Janeiro to explore a related service”, states the document.
Loterj’s response
In a post on BNL Data’s LinkedIn, Loterj responded to the AGU’s appeal, requesting that betting sites that operate only in Rio de Janeiro without a Loterj license be blocked, and that the platforms were offered the constitutional opportunity for adversarial proceedings and full defense.
“ If the providers were unable to restrict the blockade to the State only, it is not Loterj’s responsibility, but rather a failure to comply with the court order. ”
“Estimates suggest that there are more than four thousand betting houses moving more than R$150 billion per year without collecting taxes and duties – municipal, state and federal. Which sector of the Brazilian economy has the possibility of operating in Brazil for six months without paying taxes?”, he highlighted.
“Upon completing their first year of operation, last June, the Betting Houses accredited by LOTERJ have already paid out more than R$2.3 billion in prizes to bettors. Today, five bets are operating regularly in Rio: Apostou.com RJ, bestbet, MarjoSports, @Rio Jogos and PixBet”, he added.