Loterj “remains firm” in case against federal government

In an exclusive interview with iGB, Hazenclever Lopes Cançado, President of the Rio de Janeiro Lottery (Loterj), expressed his unwavering commitment to contesting federal court decisions that limit the operational scope of its licensees.

Lopes Cançado remains steadfast in advocating for the right of Loterj’s licensees to engage in national operations within Brazil. This stance comes despite several judicial rulings asserting non-compliance with federal regulations.

Notably, Loterj’s authority to allocate sports betting tenders predates the federal regulations governing online gambling, which were implemented just last year.

The inaugural sports betting tender was launched in July 2023, prior to the official rollout of Brazil’s federal legal betting market in January 2025.

However, merely a month into this new legal framework, Brazil’s Supreme Federal Court (STF) upheld a preliminary injunction restricting Loterj’s licensees to operations solely within the state of Rio de Janeiro, primarily under pressure from the attorney general’s office.

The STF ruling necessitates that Loterj’s licensed operators integrate geolocation tracking systems to ensure compliance with state boundaries for betting operations.

Lopes Cançado describes these limitations as “artificial and technically impractical,” emphasizing that Loterj’s licensees play a pivotal role in driving social impact through financial contributions to state departments.

“The revenues produced by local lotteries support initiatives in health, education, sports, and social assistance, particularly benefiting vulnerable populations. Disrupting this positive cycle disproportionately penalizes those who depend on these resources,” he asserts.

Lopes Cançado reiterates that the state lottery body is fully dedicated to its mission, aiming to empower licensed operators to conduct operations across Brazil.

Does the Preliminary Status of the Injunction Provide Hope for Loterj?

Highlighting the provisional nature of the STF’s injunction, Lopes Cançado expresses optimism regarding a favorable resolution for Loterj in the future.

“Currently, the injunction serves only as a temporary measure,” he states. “This limitation not only hampers sector competitiveness and state revenue but also fails to recognize the inherently borderless nature of the digital environment.”

“I believe that a comprehensive review of this case will ultimately compel the adoption of a more modern, equitable, and efficient regulatory framework,” he adds.

He portrays Loterj as a “pioneering disruptor” within the Brazilian betting and lottery landscape, confident that regulatory hurdles will not deter operators from engaging with the state lottery.

“Loterj remains steadfast. Our credibility, legal compliance, and commitment to transparency set us apart. We operate with meticulous adherence to the law and prioritize public interest, which continually strengthens trust among our partners, institutions, and the populace,” he emphasizes.

Addressing Unfair Competition from Illegal Operators

A significant discussion point since the inception of Brazil’s federal online gambling framework is the persistent existence of illegal gambling activities.

Lopes Cançado underscores that the black market’s influence is leading to decreased state revenues required for public policy initiatives, while simultaneously deterring investments in the legal market and posing risks to players from unregulated operators.

He calls for a strategic and collaborative effort from the government to tackle the challenges posed by the illegal sector.

“Without a united front, the regulated market risks losing its competitive edge against an increasingly informal environment that is spiraling out of control,” he warns.

The Future of Loterj

In an effort to strengthen its physical offerings, Loterj has initiated strategic measures this year, including the establishment of an internal committee in April dedicated to researching and developing technical insights into video lottery terminals.

“Our goal is to solidify Loterj’s reputation as a responsible, effective, and transparent institution that significantly contributes to the social, cultural, and economic advancement of the state of Rio de Janeiro,” Lopes Cançado concludes.

“Loterj envisions a future where it stands as a definitive reference point in the lottery sector, characterized by a strong social commitment and efficient management while adapting to market evolutions and tackling global challenges through innovation and accountability.”