PNR and Lema are the latest gambling firms to apply for accreditation with the Rio de Janeiro State Lottery, which has been criticized by the Brazilian Institute for Responsible Gaming.
PNR Tecnologia submitted documents on Wednesday, 3 April. The documentation sought to run sports betting and play online games under Loterj’s accreditation. Lema paid a visit to Loterj’s headquarters on Friday, 5 April.
It was necessary to perform a proof-of-concept and assess its compliance with Loterj’s regulations. Lema presented their platform for sports betting and online lottery in March.
BIG Brazil, a Caesars Sportsbook licensee that offers both lottery and sports betting, announced in March it would be seeking Loterj accreditation. Loterj was criticised after it tried to expand its operations in Brazil beyond Rio de Janeiro.
Yuri William, director of PNR Tecnologia, lent his backing to Loterj. He said: “Loterj is the first Brazilian lottery that has been regulated. It brings a great deal to this new market.
We believe, with Loterj’s support, that we can grow, given Brazil’s global potential in fixed odds betting. “We want to be a part of this market.”
The ongoing dispute between IBJR and Loterj
Loterj announced that PNR Tecnologia, Lema had attempted to obtain accreditation. This announcement was met with criticism by the Brazilian Institute for Responsible Gaming and the Brazilian Ministry of Finance.
IBJR, the Brazilian government’s press agency has released a statement criticizing Loterj. The IBJR stated that the accreditation of gambling companies to conduct nationwide operations was beyond their authority. IBJR has called its actions a “clear breach” of federal regulation.
The IBJR noted that “the acts performed by Loterj cause disorder, create unnecessary doubts and damage the process of regulation for the fixed odds betting industry in Brazil.”
It is unlawful to claim that Fixed-Odd Betting Operators licensed by Loterj or any other authority than the Ministry of Finance have the right explore and provide this lottery mode to customers located anywhere outside the Rio de Janeiro State.
IBJR alleges also that it has sent letters to other gambling firms requesting they cease operations because their Loterj licences have not been granted or face a variety of administrative sanctions processes.
The IBJR considered this to be an “unreasonable” request that was devoid of any legal foundation. The Federal Supreme Court ruled that, under Article 22 of Federal Constitution, the exclusive competence to legislate remains with the Union.
Santa Ritta, IBJR has a “point”
Andre Santa Ritta is an associate attorney at Pinheiro Neto Advogados. He believes that the IBJR has a valid point.
Santa Ritta believes Loterj does not have the authority to permit its licensees nationwide operation. By email, he told iGB: “IBJR has a valid point, and their arguments are reasonable.
I have personally been involved in the discussions. “I do not think Loterj is legally entitled to permit companies to operate throughout the country.”
iGB asked Loterj to comment on IBJR’s statement, but has not yet received a reply.
