Legal Battle Between Loterj and Brazil’s Gov’t Reaches Supreme Court
The Rio de Janeiro State Lottery (Loterj) has requested a preliminary injunction after the Brazil Attorney General’s Office (AGU) filed a lawsuit against the state regulator in the Supreme Federal Court last week.
The government’s lawsuit, signed by the AGU, aims to restore its right to regulate gambling across Brazil, with Loterj maintaining that its licensees have the right to operate throughout Brazil.
Loterj’s request for a preliminary injunction is calling for the ban on its licensees’ nationwide activities to be lifted, while the AGU believes that would mean Loterj is acting beyond its jurisdiction.
Codere Group Sets Sights on LatAm Expansion
Codere Group is looking to expand its influence in LatAm having completed its planned recapitalization and cutting its corporate debt from $1.5 billion to around $205.5 million.
Codere Group blamed Argentina’s turbulent economic climate for Q2 decreases in revenue and earnings in September, but now its recapitalization process is done, it’s pointed to LatAm as a region where it expects to make progress in.
The Spanish gaming group said: “With an optimal debt structure and greater liquidity, Codere is in a position to take advantage of new expansion opportunities in its key markets in Latin America and Europe, thereby consolidating its leadership in the sector.”
New Bill Pushes For 10 Percent of Betting Tax to Go to Health Sector
A new bill in Brazil is proposing altering the betting tax framework so 10 percent would go to the country’s health sector by reducing the contributions to tourism.
Currently Law No 14,790/2023, which legalized sports betting and iGaming in Brazil, states that of the tax collected by the 12 percent of gross gaming revenue (GGR) rate for operators, 28 percent of it would go to the tourism sector while health would receive just 1 per cent.
However, federal deputy Ismael Alexandrino’s PL No 3,793/2024 would slash the contributions to the tourism sector to 19 percent.
Meanwhile, the Ministry of Health would instead receive 10 percent, which would in part go to initiatives aiming to boost the Brazilian population’s access to mental health treatment.
SPA Facing Lawsuits From Banned Operators
Brazil’s Secretariat of Prizes and Bets (SPA) has reportedly been hit with at least eight lawsuits from operators left off its list of approved companies for the ongoing betting transition period.
As reported by Folha this week, the SPA is facing legal action from companies who feel they should have been allowed to continue operating between Oct. 1 and Dec. 31, with the legal market set to launch Jan. 1, 2025.
One of the lawsuits is from Zeroumbet, which was excluded from the list of federally approved operators amid an investigation into its owner Deolane Bezerra relating to allegations of illegal gambling and money laundering.
With the case against Bezerra and not Zeroumbet, the operator claims it is unjust that it has been left off the SPA’s list of approved companies.
Esportes da Sorte Added to Approved Operators List amid Investigation
An updated list of approved operators from the Secretariat of Prizes and Bets has included the Esportes da Sorte brand, despite an ongoing criminal investigation involving its owner.
Esportes da Sorte owner Esportes Gaming Brazil, as well as Reals, was included on the revised list, taking the total of approved operators for the transition period to 98.
Esportes da Sorte owner Darwin Henrique da Silva Filho was arrested as part of ‘Operation Integration’, alongside the owners of Vaidebet and Zeroumbet, over claims of involvement in an illegal gambling controversy and money laundering.
However, Esportes da Sorte is now on the SPA’s list thanks to a court order, alongside Esportes Gaming Brazil’s Onabet brand. Additionally, Reals’ brands Reals, Ux and Netpix were also added to the register.
