The long-running dispute over whether Rio de Janeiro lottery operator Loterj is allowed to operate throughout Brazil seemed to be swinging in favour of the federal government. Early in January STF minister André Mendonça passed a preliminary decision to ban the state regulator’s licensees operating outside of Rio de Janeiro borders.
After the Supreme Court rejected Loterj’s appeals, Mendonça’s preliminary injunction was set to go to a vote in a virtual session of the STF plenary. This was due to take place between 14 and 21 February.
But while the trial did get under way, with three votes in favour of upholding Mendonça’s ruling, minister Dias Toffoli requested a review on Tuesday (18 February). The trial has now been preliminarily suspended.
It means Mendonça’s injunction remains in place. Loterj licensees therefore remain banned from operating throughout Brazil, while geolocation tracking will be used to ensure they are only offering bets within Rio de Janeiro. Toffoli has 90 days from 18 February to return the case.
Loterj already on the ropes
A resolution to the conflict between Loterj and the federal government moved a step closer last Thursday (13 February), when Loterj published an ordinance suspending nationwide activities.
The ordinance, published in the Rio de Janeiro Official Gazette, also reestablished geolocation tracking for its licensees.
The ordinance, signed by Loterj president Hazenclever Lopes Cançado, will remain effective for the duration of Mendonça’s preliminary decision.
Loterj is encountering significant opposition, notably from the Brazilian Institute of Responsible Gaming (IBJR). The IBJR has requested to participate in the STF case against the state lottery as an “amicus curiae”, arguing it has valuable insights to contribute to the proceedings.
Among these insights is the IBJR’s belief that, contrary to Loterj’s claims, the technology required for geolocation tracking is readily available to meet the conditions set by Mendonça’s ruling.
Original article: https://igamingbusiness.com/legal-compliance/loterj-federal-government-trial-suspended/
