Esportes da Sorte Secures Authorization Despite Federal Regulator Setback

Esportes Gaming Brazil, the owner of the Esportes da Sorte brand, has obtained authorization to continue operating despite being initially prohibited by the federal regulator. This was achieved by becoming the controlling shareholder of ST Soft Desenvolvimento de Programa de Computadores Ltda., which owns the Apostou.com platform licensed by Loterj.

Esportes da Sorte was notably absent from the federal regulator’s (SPA) list of approved operators last week. This meant they were initially unable to operate in Brazil before the market launch date of January 1st, effectively being considered an unlicensed operator.

However, the state regulator Loterj stated that Esportes Gaming Brazil met its legal and technical requirements, thus fulfilling the conditions for authorization to operate under a state license.

The domains of the Esportes da Sorte and Onabet brands, both owned by Esportes Gaming Brazil, will replace rj.apostou.com of ST Soft on Loterj’s list of licensees in Rio de Janeiro.

This brings the number of brands approved by Loterj to 12, with Esportes da Sorte and Onabet joining names such as Caesars Sportsbook, VaideBet, and Pixbet on the list.

Esportes da Sorte Omitted from SPA’s List of Approved Operators

The initial SPA list included 89 operators. It was reported that Esportes Gaming Brazil contacted the SPA seeking rectification, believing it had met the requirements to continue its operations during the transition period.

However, even after the publication of the updated final SPA list, Esportes da Sorte remained off the registry.

Esportes da Sorte is one of three companies, alongside VaideBet and Zeroumbet, involved in the federal investigation of illegal gambling and money laundering, ‘Operation Integração’. The owners of the three companies were arrested in September.

It is worth noting that VaideBet and Zeroumbet were also left off the SPA’s list of companies considered legal during the transition period.

Can Esportes da Sorte Operate Nationwide with a Loterj License?

Uncertainties exist regarding whether Esportes da Sorte will be able to operate nationally with a Loterj license, as a Regional Federal Court recently ruled that Loterj does not have jurisdiction outside of Rio de Janeiro.

The court president, João Batista Moreira, prohibited operators licensed by Loterj from operating outside the state’s borders.

Moreira’s decision followed an appeal by the Attorney General’s Office (AGU) which aimed to restore the federal government’s ability to regulate betting across Brazil.

Loterj argued that its activities are protected by a law that predates the SPA regulations. Article 35-A of Law No. 14,790 betting regulations stipulates that licensees must follow the law, to the detriment of ordinances or preliminary injunctions.

Loterj reaffirmed its belief that its licensees “will continue to operate throughout Brazil” after the publication of the SPA’s list of approved operators.