In a move that has drawn critical attention from various quarters, PNR Tecnologia and Lema have taken significant steps towards securing accreditation from the Loteria do Estado do Rio de Janeiro (Loterj) to operate sports betting and online gaming services in Brazil. This week, PNR Tecnologia officially submitted the required documentation to Loterj, while Lema visited the lottery operator’s headquarters last Friday to present a proof of concept, further evaluating their potential compliance with Loterj’s stringent regulations.
These visits culminate a series of proactive interactions that commenced in March when Lema first showcased its platform capabilities for managing sports betting and iLottery. They were part of a wider trend set off by BIG Brazil, licensed by Caesars Sportsbook, which previously disclosed its intentions to seek Loterj’s blessing to delve into the dual realms of sports betting and lottery—a clear indicator of the growing interest in Brazil’s burgeoning gambling market.
The director of PNR Tecnologia, Yuri William, openly backed Loterj’s progressive stance, expressing his belief in Loterj’s capacity to positively influence Brazil’s regulated market, citing it as the first lottery to undertake such an endeavor. William’s optimism shines through when he speaks about leveraging the country’s potential within the global fixed-odd betting market, demonstrating a desire to play an influential role in shaping this sector’s future in Brazil.
However, these efforts by Loterj to extend its regulatory reach beyond the borders of Rio de Janeiro faced staunch criticism. This reproach came from the Brazilian Ministry of Finance and the Brazilian Institute for Responsible Gaming (IBJR), with the latter denouncing Loterj’s actions in a note circulated in the public domain. The IBJR labeled Loterj’s initiatives as a “clear violation” of federal regulations, pointing out that the attempts to accredit gambling companies for nationwide operations transgress legal boundaries.
The IBJR’s critique dissects Loterj’s recent behavior as disorderly and diminishing the process of regulating the fixed-odd betting industry within Brazil. It highlights the illegality of Loterj’s perspective, which suggests that operators licensed by it or any other authority besides the Ministry of Finance, could freely offer lottery-related services nationwide, outside their territorial jurisdiction of Rio de Janeiro state.
It’s worth noting that the controversy also stems from letters allegedly issued by Loterj instructing gambling companies to cease operations unless they have a license granted by it, with threats of administrative actions. This demand appears to be beyond their legal purview, according to the IBJR, especially in light of the Federal Supreme Court’s ruling that the power to legislate in this realm is exclusive to the Union, per article 22 of the Federal Constitution.
Legal expert André Santa Ritta, an associate at Pinheiro Neto Advogados, echoed the IBJR’s viewpoint, challenging Loterj’s jurisdictional reach over nationwide licensing. Via an email correspondence with iGB, Santa Ritta expressed doubts over Loterj’s legal grounds to authorize companies to extend their operations throughout the entire Brazilian territory.
In the eye of these unfolding events, Loterj’s response to the IBJR’s statement is highly anticipated by stakeholders within the industry. As of now, Loterj has not offered an official response to the criticism received from the IBJR or addressed queries regarding their controversial accreditation moves.
As this situation develops, the gambling sector in Brazil remains caught in a tangle of legal and regulatory complexities. With interest in Brazil’s market potential at an all-time high, the sector keenly awaits clarity on the rules that will define the landscape for betting and lottery operations within the country’s diverse territories.
