Last Friday night (28), the authority responsible for lotteries in the state of Rio de Janeiro (Loterj) obtained an important legal victory.
Judge Pablo Zuniga Dourado, from the Federal Regional Court of the 1st Region, determined that Anatel must certify the legitimacy of bookmakers to operate within the state’s limits.
In other words, if bookmakers are in violation of state legislation, the body must suspend their activities. But the decision can still be appealed.
Context of the Loterj dispute
The court decision also denied the request of the National Gaming and Lottery Association (ANJL) to participate in the process as amicus curiae. This role is reserved for entities that, even though they are not parties to the process, provide information to the judge.
Loterj had launched, last year, a notice for the accreditation of betting companies, generating controversy with other states and the federal government.
This notice allowed companies to act upon payment of a grant of R$5 million, a value well below the R$30 million required by the Ministry of Finance.
Furthermore, companies could declare that they are in Rio de Janeiro, but operate throughout Brazil without meeting regional criteria. Loterj argues that its actions are supported by STF decisions.
Zuniga’s decision goes against a previous ruling by the Federal Court of Brasília, which had denied Loterj’s request to block or suspend 115 betting platforms in Rio de Janeiro.
At the time, the first instance judge understood that Loterj did not have the authority to make such a request. Furthermore, the judge also noted that the law on fixed quotas still needed regulation.
Reactions to the decision
The Federal Regional Court of the 1st Region, however, used the same law that provides for the “blocking of internet sites that violate current Brazilian standards” to revoke the first instance decision.
In a statement, ANJL, which represents 17 betting companies, expressed its position. “All operators must be notified in the appeal by Loterj before any order to take the sites offline, thus enabling their broad defense and contradictory.”
ANJL also highlighted that Anatel must respect article 9 of law 14.790/23 and article 24 of Ordinance 827/24. Both grant a deadline of December 31, 2024 for all companies to obtain their licenses without any punishment in Brazil.
