STF-suspende-licenciamento-de-patrocinadoras-de-Corinthians-e-Flamengo-com-base-na-Loterj.
Flamengo e Corinthians em partida válida pelo Brasileirão 2024 - Foto: Rodrigo Coca - Agência Corinthians.

The Minister of the Federal Supreme Court (STF), André Mendonça, determined, in a preliminary decision last week, the suspension of the licensing of betting companies that operated nationally based on the regulations of Loterj (Rio de Janeiro State Lottery). The measure affected 25 companies, including Esportes da Sorte, sponsor of Corinthians, Ceará, Bahia and Grêmio, and Pixbet, partner of Flamengo.

According to the decision, Loterj and the government of Rio de Janeiro have five days, starting last Thursday, to comply with the determination. The injunction reinforces the updated list of companies authorized to operate in the country, released by the Ministry of Treasury on December 31st.

Federal Licenses and Temporary Operation

Companies that obtained definitive authorization from the Federal Government paid R$30 million each for the license, valid for five years. In total, 14 companies, representing 30 sites, won the right to operate permanently. Another 52 received temporary authorization and have 60 days to resolve issues related to the online betting system.

Both Esportes da Sorte and PixBet (sponsors of Corinthians and Flamengo respectively) were not on any of the lists. However, both supported the release via Loterj to continue operating nationally, but this thesis was overturned with the STF injunction.

Positioning of Esportes da Sorte

Corinthians has not yet commented on the case. Esportes da Sorte, responsible for financing R$57 million of the agreement that brought Memphis Depay to the club, sent a statement to the press stating that it complies with “the legal requirements”.

The company highlighted that it is able to operate in accordance with Loterj’s Authorization and Accreditation Term nº 003/2023. “The Esportes da Sorte Group informs that it is able to operate in accordance with the Authorization and Accreditation Term nº 003/2023 of LOTERJ”.

The authority verified that the company complies with legal requirements, including Legal Qualification, Tax and Labor Regularity, Economic-Financial Qualification, Technical Qualification. And, it meets all the requirements of responsible gaming, in addition to presenting the required certificates of suitability. Any information contrary to this decision has not yet reached the company’s attention, which is awaiting a public statement from the competent bodies.

In parallel, the company applied for license 030/2024 from SPA/MF, after complying with all legal and regulatory rites established by legislation and its respective ordinances, and awaits its approval, certain that all regulatory steps have been strictly complied with.

In light of these facts, Grupo Esportes da Sorte reaffirms its commitment to regulating the sector and responsible gaming. Aiming to protect the interests of civil society, generating jobs, income and contributing to the economic, social and cultural development of the country”.

Loterj is appealing the STF decision

Last Friday (3), Loterj appealed against Minister André Mendonça’s decision. The entity claims that the measure could generate “serious potential damage to the income” of the state and the lottery itself.

It also contests the obligation of geolocation, as current legislation restricts sales only “to people physically located within the limits of their districts or to those domiciled within their territory”.

Therefore, Loterj states that it opted for control in accordance with the “Personal Declaration of the Player”. The entity maintains that geolocation systems are ineffective and argues that residents of Rio de Janeiro have the right to bet, even outside the state.