The Public Prosecutor’s Office joined in support of the Attorney General’s Office, proposing limits on licenses given by the Rio de Janeiro State Lottery.
Ahead to the start of sports betting in Brazil, the country remains committed to guaranteeing the execution of comprehensive rules that create a competitive, fair market that directs consumers to legal offerings. The government’s primary priority is on ensuring that it has all of the authority necessary to regulate gambling activities throughout the country.
Limits on Loterj-issued betting licenses
Previously, the Rio de Janeiro State Lottery, Loterj, provided betting licenses that were valid throughout the country. This followed a court decision allowing the lottery to issue such licenses. However, the government disagreed, launching a legal battle to overturn the court’s judgment.
The Attorney General’s Office (AGU) is leading the initiative, which aims to prevent Loterj-licensed betting firms from operating throughout the country. The biggest issue about Loterj-licensed operators offering countrywide betting is that it will have an impact on market stability. Also, they refused and suspended the license to operator Zeroumbet
See Also:
- Court Approves Attorney General’s Decision Not to Whitelist Zeroumbet in Brazil
- Brazil proposes an online betting ban due to mental health and financial risks.
- Sahara Las Vegas will replace its poker room with slots in December.
According to NEXT.io, the Public Prosecutor’s Office (PGR) has now supported the AGU’s efforts. In a brief filed with the country’s Federal Supreme Court on Friday, the PGR backed the previously issued interim injunction against Loterj, which effectively barred the lottery from awarding statewide betting licenses.
Notably, PGR stated in its viewpoint that Loterj’s relaxation of territorial limits for betting licenses could upset the market balance. This position was similar to that described by the AGU. At the same time, the PGR stated that the Loterj’s current licensing regime creates a “perverse incentive to predatory competition between federated entities, analogous to a scenario of fiscal war.”
The country prepares for sports betting market launch.
Brazil plans to open its regulated sports betting industry on January 1, 2025. Ahead of this critical milestone, the country devised a transition phase that began this month, allowing operators to get permits. So far, more than 100 companies have received approval to provide services during the transition period, which is set to finish on January 1.
Many well-known gambling companies have already set their sights on Brazil, recognizing the market’s great potential, which is powered by ardent sports enthusiasts. However, other processes, like as Loterj’s coverage of betting licenses, must be finalized.
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