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Loterj files suit to annul SPA’s list of approved operators in Brazil

Loterj files suit to annul SPA’s list of approved operators in Brazil

The State Lottery of Rio de Janeiro (Loterj) filed a lawsuit in a federal court on October 29, seeking to annul the list of approved operators in Brazil from the Secretariat of Prizes and Betting (SPA).

Loterj refutes the legality of the SPA’s list of approved operators. In the lawsuit, Loterj requested an immediate suspension from the list of federally approved operators until the operators have paid their required license fee and face a bidding process to secure their license.

Up to 100 operators and 223 brands were approved to continue operating in Brazil ahead of the launch of the legal online gambling market on January 1, 2025. The first list was released by the SPA on October 2 but has since been updated to include 11 additional companies.

As part of its case, Loterj insists the list was drawn up before the operators had met all the regulator’s requirements, including paying the BRL30 million (£4 million/€4.7 million/$5.2 million) fee ) to obtain a gambling license. It also notes that no bidding process was conducted by the Federal High Court (STF), as was stipulated before the permit applications were submitted.

Therefore, the state regulator believes that approved operators have been given an unfair advantage. It believes its lottery licensees should be classified as regulated and allowed to operate until the end of 2024.

Those not placed on the SPA’s approved list will be blocked in Brazil. Nearly 3,500 domains have already been blocked by the National Telecommunications Agency (Anatel) after the launch. SPA published a second list from illegal operators on Thursday (October 31).

Another lawsuit involving Loterj in Brazil

Tuesday’s lawsuit is the latest step in an ongoing legal battle between Loterj and the federal government.

In October, Lottery requested a preliminary injunction dismissing a government lawsuit banning Loterj licensees from operating outside Rio de Janeiro state borders.

A separate federal lawsuit filed by the attorney general’s office on October 11 challenged former regulations that gave Loterj’s online gambling licensees the power to operate nationally despite not being federally licensed.

It remains to be seen whether Loterj’s request to block the case will be granted. If so, the ongoing ban on national activities for Lottery licensees will be lifted.

The SPA is also confronted a large number of additional lawsuits of operators who remain from the approved list but believe they meet the requirements for inclusion.