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Late May 2025 saw the official lottery of the Brazilian state of Sergipe, Lotese (Loteria de Sergipe), strip all online games from its online service. The action, announced by Banese (Banco do Estado de Sergipe), the lottery’s operating company, was reported as owing to a redesign of the platform. But the actual reason was far more political in tone.
The ban came after a wave of denunciation by state legislators, most notably Deputy Marcos Oliveira (PL), who publicly complained about specific games being online. Of these, the “Fortnite Tiger“—commonly known in Brazil as the “Jogo do Tigrinho“—was the subject of state assembly hearings. The online version of the game was at the center of moral and regulatory debates regarding access to gambling and gambling addiction.
Governor Fábio Mitidieri moved hastily under political pressure. He instructed the president of Banese to pull out the contentious game immediately. As a result, the “Jogo do Tigrinho” was pulled out of the site on Wednesday, ahead of Banese declaring a total temporary halt of online operations for restructuring.
The Legal and Regulatory Backdrop
Although pressured by politics, Brazilian President Marco Antônio Queiroz made a public statement in defense of the legality of the online games. He stated that though this specific game would not be returning, all the games offered by Lotese complied with the rules in effect. The state’s regulating agency, Agrese (Agência Reguladora de Serviços Públicos do Estado de Sergipe), was in concordance with this view. Through a statement, Agrese clarified that every game and product submitted by Lotese for approval had been tested in strict compliance with federal and state law.
This highlights the tension between political appearance and regulatory approval—a time-tested dilemma in jurisdictions with problematic gambling legislation.
The Evolution of Lotese
Lotese’s tale is comparatively recent but founded on substantive shifts in the legal context of Brazil. The Brazilian Supreme Federal Court, in 2020, held that individual states are able to operate their lotteries, shattering the federal monopoly. The landmark judgment paved the way for states to seek out alternate revenues through gambling.
Sergipe acted quickly. In 2021, it passed State Law 8.901, officially authorizing the Executive Branch to sanction the delivery of lottery services. In 2022, the law came into force through State Decrees 159 and 165, paving the way for operational implementation.
The regulatory infrastructure expanded in 2024 by the state legislature’s unanimous passage of State Law 9.440. The law authorized Banese to create, organize, conduct, and oversee lottery services for the state. In the latter part of that year, the Central Bank of Brazil permitted Banese to charter a subsidiary to engage in the management of the lottery business.
This move was a watershed, enabling the formation of a strategic partnership and opening the state lottery in a more formal and scalable form. Lotese had evolved into a legal and formal business by 2025, openly offering a range of lottery products—online games among them—until recent political pressure required partial backtracking.
Uncertainty and Opportunity
While Banese promises an overhauled platform “soon,” the future of online gaming in Lotese remains doubtful. The precipitous decline of digital products is merely a sign of a general indecision for Brazil’s state lotteries. While the legal groundwork is firm, political and social acceptance of online gambling remains in limbo.
The temporary removal of online gambling games would mean lost revenue and less user engagement. It might also be an opportunity to rebuild public confidence through added transparency and communication about responsible gambling practices.
The Lotese case illustrates the balancing act between legality, popular perception, and political accountability of Brazil’s early state lottery business. As more states move in this direction, the tension between innovation and regulation will probably continue to be at the forefront of the agenda.
Ultimately, the test for Lotese—and state lotteries more broadly—is to balance the double responsibility of raising revenue with public social responsibility and political acceptance. Whether Lotese’s new platform will meet all stakeholders’ expectations remains to be seen.
Source: iGaming Brasil
