PNR Tecnologia and Lema have become the latest gambling companies to seek accreditation from the Rio de Janeiro State Lottery (Loterj), which is coming under fire from the Brazilian Institute for Responsible Gaming (IBJR).
On Wednesday (3 April), PNR Tecnologia delivered documentation seeking to operate sports betting and online games with Loterj accreditation. On Friday (5 April), Lema visited the Loterj headquarters.
This was to carry out a proof of concept and evaluate its compliance with Loterj regulations. This was after Lema had previously presented its platform to operate sports betting and ilottery in March.
In March, Caesars Sportsbook-licensee BIG Brazil announced it was looking for Loterj accreditation to offer both sports betting and lottery. Loterj has since been criticised for its attempts to operate in Brazil outside its state of Rio de Janeiro.
PNR Tecnologia director Yuri William threw his support behind Loterj’s initative. He stated: “Loterj has a lot to add to the new Brazilian regulated market, being the first lottery to do this.
“We believe that, with support from Loterj, we will be able to grow given Brazil’s potential for the world in the fixed-odds betting market. We want to be part of this market.”
Ongoing dispute between IBJR and Loterj in Brazil
Loterj’s announcements of the attempts of PNR Tecnologia and Lema to seek accreditation come in the face of criticism from the country’s Ministry of Finance and the Brazilian Institute for Responsible Gaming (IBJR).
Brazil’s IBJR has published a note denouncing Loterj’s actions. It outlined that it was acting beyond its appropriate reach in accrediting gambling companies for nationwide activities. The IBJR has labelled its movements a “clear violation” of federal regulations.
“The acts carried out by Loterj create disorder, raise unnecessary doubts and harm the process of regulating the fixed-odds betting industry in Brazil,” the IBJR note read.
“It is illegal to take the position that fixed-odd betting operators licensed by Loterj (or any other authority other than the Ministry of Finance) have the right to explore this lottery modality and offer these services to consumers located in any location other than the territory of the Rio de Janeiro state.”
The IBJR also alleges that the company has been issuing letters to gambling companies demanding they halt operations due to not having a Loterj-granted licence or risk a number of administrative sanctioning processes.
This was, in the IBJR’s view, an “unreasonable request” that lacked legal basis. This is because of the Federal Supreme Court’s decision that the competence to legislate continues to be exclusive to the Union under article 22 of the Federal Constitution.
Santa Ritta: IBJR “has a point”
André Santa Ritta, an associate lawyer at Pinheiro Neto Advogados, believes there’s basis to the IBJR’s criticisms.
Santa Ritta feels Loterj doesn’t have the power to allow its licensees to operate nationwide. He told iGB by email: “IBJR does have a point and their arguments make sense.
“I myself have been involved in these discussions. I do not believe Loterj has the legal grounds to allow companies to operate in the entire country.”
iGB has asked Loterj for comment on the IBJR’s statement but is yet to receive a response.
