Esportes da Sorte owner secures Loterj licence

Esportes Gaming Brazil, the parent company of the Esportes da Sorte brand, has garnered state-level approval to continue its operations, despite facing a federal regulation ban. This approval comes as they assume the controlling stake in ST Soft Desenvolvimento de Programa de Computadores Ltda., which operates the Loterj-licensed platform Apostou.com.

Notably, Esportes da Sorte was omitted from the latest list of approved operators released by the federal regulator, the Secretaria de Avaliação, Planejamento, Energia e Loteria (SPA). This exclusion means the company cannot legally operate in Brazil until the market officially launches on January 1, and it would be classified as an unlicensed operator until then.

Despite this setback at the federal level, the state regulator, Loterj (the state lottery agency of Rio de Janeiro), has confirmed that Esportes Gaming Brazil meets the necessary legal and technical standards to receive authorization for state-level operations.

The platforms associated with Esportes Gaming Brazil, specifically Esportes da Sorte and Onabet, are set to replace the existing domain of ST Soft’s rj.apostou.com in Loterj’s list of licensed operators in Rio de Janeiro.

This development brings the total number of brands approved by Loterj to 12. Esportes da Sorte and Onabet will join industry giants such as Caesars Sportsbook, VaideBet, and Pixbet on this officially sanctioned list.

Esportes da Sorte’s Absence from SPA’s Approved Operators List

The initial SPA list included 89 operators; however, UOL reported that Esportes Gaming Brazil had approached the SPA for a review, asserting their compliance with all operational requirements during the transition period. Unfortunately, despite these efforts, Esportes da Sorte remained excluded from the final roster.

It is important to note that Esportes da Sorte is one of three companies entangled in a federal investigation into illegal gambling and money laundering, nicknamed ‘Operation Integration.’ The ownership of these companies—including VaideBet and Zeroumbet—faced arrests in September, emphasizing the current scrutiny within the industry.

Consistent with these challenges, both VaideBet and Zeroumbet also found themselves absent from the SPA’s list of operators deemed legal during the transitional phase.

Implications of Loterj License on Nationwide Operations

However, uncertainty looms over the ability of Esportes da Sorte to operate on a national scale with a Loterj license. A recent ruling from a Federal Regional Court declared that Loterj’s jurisdiction is limited exclusively to Rio de Janeiro. This ruling, pronounced by Court President João Batista Moreira, prohibits Loterj-licensed entities from extending their operations beyond state lines.

This judicial decision came as a result of an appeal initiated by Brazil’s attorney-general’s office (AGU), which aimed to reinforce the federal government’s authority to regulate gambling across the entire country.

In response to this development, Loterj has contended that its operations are protected by pre-existing law that predates SPA regulations. According to Article 35-A of the gambling regulation Law No 14,790, it is mandated that licensees adhere to the law over any subsequent ordinances or injunctions.

Loterj remains optimistic, insisting its licensees will “continue to operate throughout Brazil” following the SPA’s release of the federally approved operator list.