The Rio de Janeiro State Lottery (Loterj) had an important victory in court last Friday (28). With the decision, from the Federal Regional Court of the 1st Region , betting houses not licensed by the state agency may be blocked in the state .

The decision by Judge Carlos Zuniga Dourado was an appeal against the decision of the 13th Federal Court of the Federal District Judicial Section, which had rejected Loterj ‘s request to block unlicensed betting sites.

In short, the request was for the National Telecommunications Agency (Anatel) to order internet providers to “block or suspend the websites listed by Loterj that illegally operate fixed-odds bets”.

The first request was denied on the following grounds:

• Article 35-A of Law 13,756/2018 allows States to regulate the exploitation of lottery modalities operated by them or authorized, however, it does not authorize regulation by agents without state authorization;
• Law 14,790/2023 establishes that the exploration of fixed-odds betting must occur in a competitive environment with authorization from the Ministry of Finance;
• The application of Law 14,790/2023 depends on federal regulation and a ninety-day adaptation period;
• Loterj does not have the authority to demand the blocking of websites without a specific court order, as per article 19 of Law 12.965/2014.

The decision in favor of Loterj was given on the understanding that the operation of fixed-quota lotteries is not exclusive to the Union and, therefore, the states would have the authority to do so.

“In view of the above, I partially grant the advance of the effects of the injunction to authorize Anatel to promote the verification of the operational legitimacy of the companies listed in the initial (ID 418209247), before Loterj and, if negative, to take the appropriate measures, within the limits of the State of Rio de Janeiro, to determine the suspension of the fixed-odds betting lottery activities that are in disagreement with the legislation applied to the species”, it highlights.

The decision can still be appealed.

Negative reaction

The gaming and betting sector took the decision negatively. In a statement, the National Association of Gaming and Lotteries (ANJL) stated that there was a mistake in Loterj’s understanding of the injunction.

“The injunction determines that Anatel verify the operational legitimacy of the companies listed in the Loterj action under current legislation. For ANJL, it is clear that Anatel has the duty to respect art. 9 of Law No. 14,790/23 and art. 24 of Ordinance No. 827/24, which granted a deadline until December 31, 2024 for all companies to obtain their respective licenses without any punishment in Brazil. Anatel must also respect art. 2 of Law 9,784/99 and its internal regulations, which guarantee operators full defense and adversarial proceedings before any order to take websites offline,” it stated.

For the association, the interpretation given “is nothing more than a new failed attempt to force operators to obtain a state license before the deadline for obtaining a Federal License has expired.”

The Brazilian Institute of Responsible Gaming (IBJR) also released a statement expressing “concern” over the decision.

“IBJR warns that Loterj’s positioning fosters legal uncertainty, harming the business environment in Brazil and threatening the effectiveness of the legal framework consolidated by Federal Law No. 14,790/2023 and by the recent SPA/MF Ordinances, in which operators have until the end of the year to obtain their licenses,” they declared.

The institute also highlighted that the decision must be appealed by Anatel and the Union.

Aposta Legal Brasil contacted Loterj for a statement on the matter and is awaiting responses.