Brazil: Te Challenges
nationally while paying less taxes and fees. Tis has led to a dispute between the STF and Loterj. Loterj, argues that regulating the sports betting sector in its
territory, was a necessary and legitimate response to the inaction of the Union itself, which allowed the deadline established in Law 13,756/2018 to elapse without due federal regulation. In a statement the lottery argued that “the eventual invalidation of the legal acts that accredited the companies would imply in million-dollar compensations, significant loss of tax revenue for or the Union itself, and the destabilisation of an entire regulated economic sector.” In January, Minister André Mendonça of the STF ruled that
Loterj and the State of Rio de Janeiro must cease accepting fixed-odds sports bets made from outside their jurisdiction. Tis decision has already significantly impacted several licensed operators who will now be required to adhere to the new regulation. Notably, sports betting platform Esportes da Sorte has established master sponsorship agreements with prominent football clubs, including Corinthians, Náutico, Ceará, and Bahia. Additionally, Pixbet serves as the main sponsor for the renowned Flamengo football club, while Betvip is a sponsor for Sport Recife. In a piece published in Brazilian press Hazenclever Lopes
Te president of the National Telecommunications Agency has gone on record stating that the country is fighting a losing battle when it comes to the blocking of illegal betting sites, as the regulatory agency alone does not have the means for effective and permanent closure of these sites.
his predecessor Law number 13,756 required the Ministry of Finance to promote the regulation of sports betting within a time limit of four years. However, it wasn’t until December 30, 2023 that President Lula promulgated Law 14,790. By then a number of states had already launched their own sports betting products. Tey were able to do so because Brazil's Supreme Court (STF) had ruled that the federal government's monopoly on lotteries was unconstitutional. Sports betting had already been classified as a type of
lottery under Law No. 13,756. Te Rio de Janeiro State Lottery (Loterj) became the first state lottery to authorize online sports betting in Brazil. Crucially Loterj authorized online betting platforms to operate across Brazil. As a consequence, companies can apply for a licence in the state and operate
Cançado, president of Loterj argued that while accredited operators have paid significant taxes, the Federal Government continues to create a hostile environment for them while allowing unlicensed international operators to flourish without paying taxes.
THE ILLEGAL MARKET Lopes Cançado touches on a crucial issue here: Will the blocking of illegal platforms prove to be a Sisyphean task or to put it more bluntly turn out to become a case of whack a mole? To give an idea of just how big the problem is the Secretary of Prizes and Bets (SPA) in partnership with the National Telecommunications Agency (Anatel) blocked 9,600 illegal gambling sites between October 2024 and January 2025. Te president of the National Telecommunications Agency Carlos Baigorri has gone on record stating that the country is fighting a losing battle when it comes to the blocking of illegal betting sites, as the regulatory agency alone does not have the means for effective and permanent closure of these sites. Te National Association of Games and Lotteries (ANJL) supported his concern in December stating that it had been in discussions with market operators, and had learned that more than two thousand illegal domains were fully operational in Brazil, in addition to the thousands that had already been taken down by Anatel.
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