The Federal Attorney General’s Office (AGU) filed a lawsuit with the Federal Supreme Court (STF). The objective is to prevent the Rio de Janeiro State Lottery (Loterj) from authorizing online bookmakers to operate at a national level.
Furthermore, the AGU requests an injunction so that the exploration of the activity outside of Rio de Janeiro is suspended immediately.
Flaws in the betting system
In the Original Civil Action, the AGU argues that the accreditation rules proposed by Loterj do not limit online betting to the state of Rio de Janeiro. According to the AGU, Loterj has significant flaws in its regulations related to the prevention of money laundering and the financing of terrorist activities.
One of the main points raised by AGU is that Loterj allows bettors to declare that bets will be placed in the state of Rio, but there is no effective geolocation system that proves this information.
This system is ineffective at blocking bets from other regions, allowing Loterj’s reach to go beyond state borders.
According to the action, this practice allows Loterj to accredit companies to operate throughout the country, compromising the federative pact and free competition. Furthermore, Loterj’s national operations ignore the guidelines of the Ministry of Finance and invade the competence of the Union, which regulates lottery services throughout the national territory.
The AGU highlights that states such as Paraná and Maranhão impose geolocation requirements for the operation of lotteries, promoting equality between federative entities.
AGU claims that Loterj threatens national competitiveness
The AGU requests the STF to suspend the provisions of the Loterj accreditation notice, which allowed this national exploration of betting. The petition calls for the immediate end of activity by companies accredited outside Rio de Janeiro and demands that electronic geolocation mechanisms be implemented.
A technical note from the Prizes and Betting Secretariat of the Ministry of Finance, attached to the process, warns about the national performance of betting houses accredited by Loterj. According to the secretariat, this could generate predatory competition between states, a situation comparable to a tax war.
Thus, the document warns that if this precedent were to materialize, other states could feel pressured to make their regulations more flexible. This, in turn, would negatively affect cybersecurity, the financial integrity of operators and the fight against money laundering.
AGU states that Loterj did not create conditions for gambling within RJ
The AGU also highlights that the state of Rio de Janeiro and Loterj did not create the necessary regulations, in accordance with the Money Laundering Law (Law nº 9,613/1998). The guidelines require that obligations to prevent money laundering and terrorist financing be implemented, especially in online betting activities.
Coaf (Financial Activities Control Council) warns that Loterj’s territorial model compromises the prevention of money laundering. So, he states that acceptance of this model could transform each state into a betting center, increasing the risk of financial crimes.
Based on all these arguments, the AGU asked the STF to immediately suspend the exploration of online betting beyond Rio de Janeiro. The action aims to guarantee not only the regularity of sports betting, but also the integrity of the financial system and the security of society.
Loterj contests AGU action
Therefore, last Sunday (13), Loterj filed a request for a preliminary challenge against AGU’s action at the STF.
In the document, Loterj argues that there is no probability of right, stating that the Union was unable to clearly prove the right it claims to have.
See the document in full:
