Esportes Gaming Brazil Secures Loterj Licence

Esportes Gaming Brazil, owner of the Esportes da Sorte brand, secures a crucial lifeline by obtaining a Loterj licence.  After being left off the federal regulator’s list of approved operators, Esportes Gaming Brazil finds a strategic way to keep its operations running. Discover how this move allows Esportes Gaming Brazil to continue operations and what it means for the future of gambling regulation in Brazil. Read on to understand the implications of this strategic licence acquisition and how it impacts the Brazilian iGaming landscape.

Esportes Gaming Brazil Secures Loterj Licence to Bypass Federal Ban

Esportes Gaming Brazil, the parent company behind the Esportes da Sorte brand, has avoided a potential shutdown after being left off the federal regulator’s list of approved operators. The company secured its operations by acquiring a Loterj licence through its control of ST Soft Desenvolvimento de Programa de Computadores Ltda, which owns the Loterj-licensed platform Apostou.com.

This move allows Esportes Gaming Brazil to continue operating legally under Rio de Janeiro’s state regulatory framework, despite the federal regulator, the Secretaria de Apostas e Loterias (SPA), excluding it from its list of authorised operators.

Esportes da Sorte Bypasses Federal Ban

When the SPA released its list of 89 approved operators, Esportes Gaming Brazil was notably absent, meaning it would be considered an unlicensed operator until the market’s official launch on 1 January 2025. Despite the company reaching out to the SPA, seeking rectification and claiming compliance with regulatory requirements, it was still left off the final list.

The company faced an uncertain future in Brazil’s regulated gambling market. However, Esportes Gaming Brazil’s acquisition of the Loterj licence through ST Soft has granted it temporary reprieve. The domains of Esportes da Sorte and Onabet will now replace rj.apostou.com on the official list of Loterj licensees. This brings the number of Loterj-approved brands in Rio de Janeiro to 12, including big names like Caesars Sportsbook, VaideBet, and PixBet.

Navigating Legal Complexities

Despite obtaining a Loterj licence, there are still legal uncertainties around whether Esportes Gaming Brazil can operate nationally. A Federal Regional Court recently ruled that Loterj-licensed operators do not have jurisdiction to operate outside Rio de Janeiro. The ruling was handed down by TRF1 president João Batista Moreira following an appeal by the Attorney-General’s Office (AGU), which seeks to reinstate federal authority over gambling regulation across Brazil.

This ruling casts doubt on the scope of Esportes Gaming Brazil’s operations beyond Rio de Janeiro, despite Loterj’s assertion that its licences are protected by Article 35-A of Law No 14,790, which predates federal gambling regulations. Loterj maintains that its licensees will continue to operate nationally, citing legal protections that override SPA’s ordinances.

Federal Investigation Casts a Shadow

Adding to the complexity, Esportes da Sorte has been linked to the Operation Integration federal investigation, which is focused on illegal gambling and money laundering. The investigation, launched in September, resulted in the arrest of the owners of VaideBet and Zeroumbet, both of which were also left off SPA’s approved list. These developments further complicate the regulatory landscape for Esportes da Sorte as it navigates through federal scrutiny and legal challenges.

A Strategic Lifeline Amid Regulatory Hurdles

By securing a Loterj licence, Esportes Gaming Brazil has found a temporary solution to keep its operations alive, at least within Rio de Janeiro. However, with mounting legal challenges and the federal government asserting its regulatory authority, the company’s long-term future remains uncertain. As Brazil’s gambling landscape continues to evolve, Esportes da Sorte’s ability to navigate both state and federal regulations will determine its success in the competitive market. For now, this strategic move buys time, but the broader implications of the federal ban and ongoing investigations cast a shadow over the company’s future.