The Supreme Federal Court (STF) of Brazil has secured an outright majority to uphold Justice André Mendonça’s ‘preliminary injunction’ against the Rio de Janeiro state lottery, Loterj.

The court upheld Justice Mendonça’s October ruling, which restricts Loterj-licensed operators from conducting online gambling, sports betting, and lottery activities beyond the territorial limits of Rio de Janeiro.

The demand was initiated on 2 January, with Loterj given five days to ensure that state licensees implement geolocation restrictions, confining state lottery activities exclusively to Rio de Janeiro.

In an ongoing dispute since the authorisation of Law 14.790, the regulatory framework of Brazil’s betting regime, Loterj believes that its autonomy to regulate and license gambling activities has been infringed.

Loterj contests the rulings, pointing to a 2020 Supreme Court decision, which ended the federal monopoly on lotteries, allowing states to operate their own lottery systems.

Following the ruling, Loterj appealed the decision twice, seeking to overturn the injunction. However, both appeals were rejected by the Supreme Court, reinforcing the federal government’s stance on restricting state-level gambling operations.

On 13 February, Loterj officially complied with the Supreme Court’s decision by suspending all online gambling and lottery services offered outside the state of Rio de Janeiro. The decision was subsequently published in the Official Gazette of the State of Rio de Janeiro.

Justice André Mendonça issued a final warning that non-compliance would result in daily fines of R$500,000 for Loterj and R$50,000 for its president, Hazenclever Lopes Cançado.

The ruling marks a significant shift in Brazil’s gambling regulation, reinforcing federal authority over state-run gambling operations. With the decision finalised, companies licensed by Loterj must now strictly adhere to regional restrictions or face legal consequences.

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