Loterj President Continues Fight for National Operation of Licensed Betting
In an interview, the president of the Rio de Janeiro Lottery (Loterj), Hazenclever Lopes Cançado, stated he will continue to appeal federal court decisions restricting the activities of its licensees.
Hazenclever affirmed his unwavering belief that licensees should be authorized to operate nationally in Brazil, despite a series of injunctions determining that the entity does not comply with federal regulations.
Loterj’s ability to publish sports betting operation notices to its licensees predates the current federal online gambling regulations, which took effect last year.
Its first sports betting operation notice was published in July 2023, a year and a half before the launch of Brazil’s federal legal betting market in January 2025.
However, a month after the new market opened, the Supreme Federal Court (STF) formed a majority to uphold an injunction preventing Loterj licensees from operating throughout the country, under pressure from the Attorney General’s Office.
The court insists that Loterj licensees can only offer bets within the state of Rio de Janeiro. In its latest decision, the STF required Loterj licensees to install geolocation tracking to ensure they are only operating bets within the state.
Hazenclever describes the situation as artificial and technically unsustainable. He argues that Loterj licensees generate positive social changes throughout Brazil by funding public bodies.
“This revenue, generated by local lotteries… finances actions in health, education, sports, and social assistance, especially for the most vulnerable. Interference in this cycle of progress penalizes the vulnerable population.”
He reiterates that the state lottery body is “fully committed to following its mission and ensuring that its licensed operators operate throughout the national territory.”
The Provisional Status of the Injunction: Hope for Loterj?
Hazenclever emphasizes that the STF’s injunction on Loterj’s activities is only provisional.
He believes that the STF will eventually rule in favor of Loterj, rather than making the current measures in the injunction permanent.
“The STF’s decision is, for now, just an injunction,” Hazenclever notes. “In addition to harming the competitiveness of the sector and the revenue of the states, this restriction does not reflect the reality of the digital environment, which, given its very nature, knows no physical borders.
I am sure that when the case is analyzed in more depth, the need for a more modern, fair, and efficient regulatory model for all will prevail.”
Hazenclever sees Loterj as a “disruptive leader” in the Brazilian betting and lottery market and does not believe that the STF injunction and current legal uncertainty will affect operators’ confidence in the state lottery.
“Loterj has not been shaken. We remain firm because we have what many are still looking for: credibility, legality, and total transparency.
We act with technical rigor, within the law, and with absolute commitment to the public interest. And it is precisely for this reason that confidence in Loterj only grows – among partners, institutions, and, above all, among the population.”
Unfair Competition from Illegal Operators: A Major Concern
A common theme since the launch of the federal online gaming market in Brazil is the still-thriving illegal market.
The president of Loterj believes that the impacts of the black market are leading to a decrease in revenue in the state, revenue that could finance public policies, in addition to having the effect of discouraging investment in the licensed market and exposing actors to the dangers of illegal operators.
Hazenclever calls for the issue to be addressed with a “coordinated approach” from the government.
“Without a coordinated approach, the regulated market risks losing competitiveness to an environment of informality that only grows out of control,” he says.
The Future of Loterj
This year, Loterj has taken strategic measures to reinforce its physical presence, establishing an internal committee in April to conduct research and technical studies on video lottery terminals.
“We are focused on consolidating Loterj’s role as a responsible, efficient, and transparent institution that contributes significantly to the social, cultural, and economic development of the state of Rio de Janeiro,” concludes Hazenclever.
“Loterj’s long-term vision is to be a benchmark institution in the lottery sector, with a strong social commitment and efficient management, promoting collective well-being and the development of the state of Rio de Janeiro, while adapting to market transformations and facing global challenges with innovation and responsibility.”
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