Loterj Files Lawsuit to Halt Brazil’s SPA List

The Rio de Janeiro State Lottery (Loterj) has launched a lawsuit in a Brazilian federal court, aiming to suspend the Secretariat of Prizes and Bets’ (SPA) list of approved gambling operators until the required fees are paid and a formal bidding process is completed. Loterj’s legal action highlights a complex regulatory battle as Brazil prepares to open its legal online betting market on 1 January 2025. With more than 100 operators approved by the SPA and thousands of domains already blocked, the lawsuit has the potential to reshape Brazil’s gambling landscape as the nation’s federal and state regulators clash over jurisdiction.

Loterj Sues to Suspend SPA’s Approved Operators List in Brazil

In its lawsuit filed on 29 October, Loterj argues that the SPA’s list of approved operators is premature and incomplete, as not all listed operators have fulfilled the necessary licensing requirements, including payment of the BRL30 million licensing fee. Additionally, Loterj contends that the process lacked transparency since no bidding procedure was held, as stipulated by the Federal Supreme Court (STF) guidelines. This, Loterj claims, gives approved operators an unfair advantage, allowing them to operate in Brazil without meeting the full requirements laid out for federal licensing.

Key Points:

• Loterj has filed a federal lawsuit to suspend the SPA’s list of approved gambling operators in Brazil.
• The lawsuit challenges that approved operators have not yet paid the BRL30 million licensing fee or undergone a bidding process.
• Anatel has already blocked close to 3,500 domains, adding urgency to the legal dispute as non-listed operators risk being excluded from the market.

The SPA’s initial list, released on 2 October and later updated to include additional companies, now comprises over 100 operators and 223 brands. According to Loterj, this approval confers an unfair advantage on those operators, as Loterj’s licensees remain restricted to Rio de Janeiro without similar national operating permissions.

A Broader Legal Battle Between Loterj and the Federal Government

This lawsuit is the latest development in a series of legal confrontations between Loterj and the federal government. Earlier this October, Loterj requested a preliminary injunction to overturn a ruling that restricts Loterj’s licensees to operate solely within Rio de Janeiro’s borders. A separate federal lawsuit filed on 11 October by the Attorney General’s office further challenges Loterj’s authority, seeking to limit the state lottery’s licenses to Rio alone rather than the entire country.

If the court grants Loterj’s request to suspend the SPA-approved operator list, it could lift the current ban on nationwide operations for Loterj licensees. This move would enable Loterj licensees to remain active across Brazil until the end of 2024, offering temporary relief to those operators facing exclusion from the market.

Rising Concerns and Legal Challenges Facing the SPA

The SPA is simultaneously facing legal challenges from other operators left off the approved list, who argue they meet the required criteria for inclusion. These operators have appealed for reconsideration, seeking equal opportunities to participate in Brazil’s burgeoning online gambling market. Furthermore, the National Telecommunications Agency (Anatel) has begun blocking access to unlicensed domains as per the SPA’s directive, resulting in nearly 3,500 domains being restricted since the SPA’s publication of the second list of illegal operators on 31 October.

Implications for Brazil’s Gambling Market

The outcome of Loterj’s lawsuit could have far-reaching implications for Brazil’s gaming industry, particularly as the country edges closer to opening a regulated online betting market in January 2025. If Loterj’s appeal is successful, it may prompt revisions to the SPA’s licensing procedures and create additional regulatory delays, potentially affecting the timeline for Brazil’s planned market launch. The ongoing jurisdictional dispute between state and federal regulators also raises questions about the role of regional authorities in overseeing online gambling licenses.

While Loterj continues to defend its regulatory rights within Rio de Janeiro, the federal government has positioned the SPA as the primary body responsible for overseeing the national gambling industry. However, as Loterj advocates for local operators to compete at a national level, the legal tug-of-war underscores a need for greater clarity and coordination in Brazil’s evolving regulatory framework.

As Brazil prepares for a regulated online betting market, the lawsuit filed by Loterj against the SPA’s list of approved operators highlights ongoing tension between state and federal authorities over control and regulatory standards. With thousands of domains blocked and the risk of exclusion looming for non-approved operators, the outcome of Loterj’s case could influence the direction of Brazil’s gambling market in the months leading up to the official launch. Whether or not Loterj’s appeal is successful, the case underscores the complexities of Brazil’s emerging gambling regulations and the need for a cohesive approach to governance in this fast-evolving industry.