Minister Dias Toffoli requested a review and interrupted the trial of the Original Civil Action (ACO 3696) in the Virtual Plenary of the Federal Supreme Court (STF) this Tuesday (18). The action, proposed by the Union, seeks to prevent the Rio de Janeiro State Lottery (Loterj) from authorizing online sports betting companies nationwide.
Before the request for review, ministers Gilmar Mendes and Alexandre de Morais had already voted. Both agreed with the individual decision of the rapporteur, André Mendonça, who suspended Loterj‘s national operation.
Trial information
With the temporary suspension of the trial, André Mendonça‘s preliminary decision remains valid. Toffoli has up to 90 days to return the case to the Plenary, but he can do so before the deadline.
The trial in the Virtual Plenary was initially scheduled to take place between February 14 and 21, 2025.
In his vote, André Mendonça maintained his understanding of the preliminary decision of January 2nd. He reiterated the suspension of the operation of lotteries and online games outside the territory of Rio de Janeiro. Furthermore, it reinforced the mandatory use of electronic geolocation mechanisms.
According to the rapporteur, the action raises questions about the limits of competence between the State of Rio de Janeiro and the Union in the exploration of this public service. The case is now awaiting Toffoli’s analysis so that the trial can be resumed.
Loterj stopped online betting outside Rio after STF decision
Last Thursday (13), the Rio de Janeiro State Lottery (Loterj) interrupted its online betting services outside the state. The measure complied with a determination by Minister André Mendonça, of the Federal Supreme Court (STF), in a case filed by the Attorney General’s Office (AGU).
Therefore, the STF demanded that companies accredited by Loterj cease operations outside of Rio de Janeiro. Thus, only platforms that proved to operate within state limits, through geolocation mechanisms, were able to continue operating. The decision was published in the Official Gazette of Rio de Janeiro.
André Mendonça maintained the ban on Loterj operating outside the state, under penalty of a daily fine of R$500,000 to the agency. The president of Loterj, Hazenclever Lopes Cançado, would also face fines of R$50,000 per day in case of non-compliance.
In an article published on the Migalhas portal, Cançado stated: “Legal uncertainty in Brazilian betting exposes legal weaknesses, unfair competition and bureaucracy that disrupt the market and harm the economy.”
The AGU argued that Loterj‘s actions allowed other states to question the rules of the betting sector. This would impact cybersecurity, responsible gaming, the financial health of operators and the fight against money laundering.
It is worth remembering that Loterj published a notice in 2024 to accredit betting companies, demanding R$5 million per license. In other words, this value was lower than that established by the Ministry of Finance, which charges R$30 million.
