Brazil Court Ruling Allows Loterj Licensees to Operate Without Federal Authorization
Earlier this week, the Supreme Federal Court (STF) in Brazil granted the Rio de Janeiro State Lottery (Loterj) a preliminary injunction that will allow Loterj-licensed brands to continue operations without being impacted by the federal ban on unlicensed operators.
The publication of Normative Ordinance No 1,475 and the new deadline for operators to submit federal license applications had raised questions over the impact on state regulators and licensees.
However, federal judge Antonio Claudio Macedo da Silva granted the preliminary injunction and suspended the effects of federal betting regulations No 1,225, No 1,231 and No 1,475 for being “incompatible” with Loterj’s Accreditation Notice 001/2023, which allows accredited legal entities to operate public lottery services for up to five years.
The three ordinances relate to advertising and the blocking of unlicensed sites, and therefore Loterj licensees will continue to have the “broad and unrestricted right” to operate fixed-odds online betting regardless of federal regulations.
Paraguay Senate Postpones Gambling Amendments Review
The Paraguay Senate has decided to postpone all reviews on amendments to the country’s gambling laws.
As reported by SBC Noticias, the Chair of the Paraguay Senate’s Constitutional Affairs Committee Javier Zacarías Irún announced the postponement, which comes after the Committee had been requested to review proposals for changes to gambling law in the country.
The proposal sought to alter Law No 1016/1997, bringing in a new legislative framework for gambling in Paraguay. However, it now appears those changes will have to wait following this latest blow to Paraguay’s hopes of regulated online gambling.
SPA Publishes List of Operators Allowed to Continue Activities During Transition Period
This week, the Secretariat of Prizes and Bets (SPA) in Brazil revealed which companies would be allowed to continue doing business during the transition period leading up to the launch of the full legal market on Jan. 1, 2025.
Published in September, Normative Ordinance No 1,475 ruled only operators already active in Brazil and those who had applied for a license would be allowed to continue operations between Oct. 1 and Dec. 31.
The SPA’s first list on Tuesday (Oct. 1) disclosed 89 companies and their 193 brands would be considered legal during the transition period. However, a revised list was released on Wednesday (Oct. 2), clarifying that there were in fact 93 operators and 205 brands on the approved list.
Trio Excluded from SPA’s Approved List Following Illegal Gambling Links
While the SPA’s list included many well-known names such as Betsson, Bet365 and Betano, other notable operators failed to make the list.
For instance, Esportes da Sorte, VaideBet and Zeroumbet were all notable absentees after being involved in a recent controversy relating to illegal gambling and money laundering.
The owners of all three companies were arrested by ‘Operation Integration,’ which is being led by the civil police of Pernambuco, with Interpol, as well as the Ministry of Justice and Public Security, also involved.
Also failing to make the SPA’s approved list was Caixa Loterias, a federal lottery monopoly that has already announced its intention to offer sports betting and had applied for a license.
IBJR Calls for Government to Reconsider Pix Betting Ban
The Brazilian Institute of Responsible Gaming (IBJR) has urged the government to reconsider banning Pix for betting, arguing it won’t lower player debt.
Last Wednesday (Sep. 25), federal deputy Luiz Carlos Hauly presented bill PL 3717/2024, which would ban the use of electronic payments for gambling, including popular instant payment service Pix, which is controlled by the Central Bank of Brazil. The IBJR believes the prohibition of Pix for betting may instead have a harmful effect on bettors, who could look for alternative means to gamble.
“We believe there is a need to rethink the proposed restrictions on Pix, which was designed to lower transaction costs,” IBJR said. “Blocking its use doesn’t seem to help with controlling debt and may, in fact, benefit sectors that charge higher fees, such as TED transfers, imposing unnecessary costs on consumers.”
