The Rio de Janeiro state lottery has sued the government over its move gambling legalization efforts
Brazil’s path toward fully regulated gambling hit an obstacle this week with the filing of a lawsuit aimed at slowing the government’s licensing process. The lawsuit, filed in the 13th Federal Civil Court of the Federal District, demands a preliminary injunction to suspend the government’s recently released list of legal gambling operators. The plaintiffs argue that operations should halt until all licensing requirements are fully processed and fees are paid.
The legal action is part of an ongoing dispute involving Loterj, the Rio de Janeiro state lottery, which has been pushing for permission to issue gambling licenses across Brazil. Loterj argues that the federal government’s move to grant licenses only through its own list oversteps its authority and lacks a complete licensing process, calling it an “unconstitutional regime.”
This lawsuit is the latest complication following the federal government’s recent attempt to accelerate regulation by allowing only those operators who applied for a license before September 17 to continue operating. Previously, unlicensed operators were permitted to operate until January 1, 2025, when the new market regulations were scheduled to take effect. The push for early compliance comes after a series of high-profile investigations into alleged money laundering by sports betting businesses operating in Brazil’s grey market.
Alongside legal disputes, Brazilian authorities are taking more active enforcement steps against unlicensed operators. The Prizes and Betting Secretariat at the Ministry of Finance ordered the National Telecommunications Agency to block 1,443 additional unapproved gambling sites this week, adding to over 2,000 sites already blocked earlier in October. The blocking targets operators that failed to apply for licenses by the government’s mid-September deadline.
The developments reflect Brazil’s challenging regulatory path as it grapples with balancing enforcement and timely market rollout amid industry pushback and ongoing concerns about unauthorized gambling activities.
