The entity supported the STF's resolution by considering that the state model does not offer the same robustness and security as the national regulatory framework.
Brazil.- The Brazilian Institute of Responsible Gaming (IBJR) issued a note supporting the preliminary decision of the Minister of the Supreme Federal Court (STF), André Mendonça, which suspended the operation of the Rio de Janeiro State Lottery (Loterj) to operate bets throughout the Brazilian territory.
The entity has supported the regulations implemented by the Secretariat of Prizes and Bets (SPA) and considers that the state model of Loterj does not offer the same robustness and security as the model proposed by the Ministry of Finance.
“The Brazilian Institute of Responsible Gaming (IBJR), whose associated companies represent about 75 percent of the national market for online sports betting, supports the STF's precautionary measure. The decision increases the legal security of the sector and is in line with the need to apply strict and effective rules, focusing on the integrity and protection of bettors through Responsible Gaming,” the entity noted in a statement.
From the entity they added: "The federal regulation outlined by the Secretariat of Prizes and Bets of the Ministry of Finance represents a robust and responsible model, aimed at protecting players, ensuring ethical practices, and promoting the social destination of the collected resources. The state model, like that of Loterj, lacks adequate mechanisms of inspection and compliance, which generates regulatory challenges, unfair competition, and reputational risks for the entire sector."
Mendonça ordered Loterj and the State of Rio de Janeiro to stop accepting fixed-odds sports bets outside their jurisdiction. The measure, announced on January 2, must be implemented within five days, with the reintroduction of the mandatory use of electronic geolocation systems.
In the preliminary decision, Mendonça suspended the application of a norm from the Loterj notice that allowed the accreditation of companies to operate bets in the state. For the minister, the norm favored the interstate exploitation of this public service by Rio de Janeiro, overlooking the competence of the Union and other states.
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Originally, the notice required interested companies to implement geolocation systems to ensure that real-time bets were only made within Rio de Janeiro, in addition to processes that prevented access outside the state limits. However, the notice was modified and these requirements were removed.
For its part, the Rio de Janeiro State Lottery filed a clarification request with a request for suspensive effect of the decision, before the Supreme Federal Court. According to the petition from the municipality of Rio de Janeiro, the decision presents “omissions, obscurities, and possible material errors, which require integration and supplementation”.
