Brazilian Court suspends sports betting and gaming machines linked to state lottery
A judge ruled to halt fixed-odds betting and physical lottery terminals after questioning the legality of the state’s concession model.
Key Points
- A popular action led to a court order suspending operations
- The judge argued that states cannot monopolise fixed-odds betting through concessions
- The company and State Government claim they followed all legal procedures
A court in Tocantins, a state in Brazil, has ordered the immediate suspension of the state’s sports betting activities and the use of gaming machines linked to its public lottery, Lototins.
The plaintiff argued that the model violates Federal Law No. 14.790/2023. Said law establishes that fixed-odds betting must be authorised by the Ministry of Finance on a case-by-case basis. The judge agreed, saying the state cannot use a concession process to monopolise betting services, especially since the law allows for multiple operators in a competitive environment.
As a result, the court prohibited both company’s online and land-based betting operations, including the use of video lottery terminals. The company and the Tocantins Government claim they have not yet been formally notified but say they will comply once they are. Both also announced they intend to challenge the ruling, citing Brazil’s Supreme Federal Court’s recognition of state authority to operate lotteries.
Lototins defends its legal standing by pointing to existing laws and certifications that differentiate its lottery products from unauthorised gambling machines.
Good to know: While the regulated market develops in the country, Brazilian Senators warn that a short timeline could weaken Brazil’s betting inquiry
Lototins claims its terminals are certified instant lottery games, not fixed-odds or slot machines.
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