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The months of legal battle between the federal government and the Rio de Janeiro State Lottery (Loterj) appeared to have ended following the Supreme Court’s rejection of the regulator’s last appeal. However, it seems the conflict is far from over. The State of Paraná has stepped in, informing the Supreme Court that Loterj has not complied with the order to suspend the national operation of fixed odds betting, known as ‘Bets.’
The initial ruling came on January 2, giving the regulator five days to comply. Loterj was quick to file an appeal, but it was rejected. Now, the Attorney General’s Office of the State of Paraná informed the Supreme Federal Court that Loterj was not complying with Minister André Mendonça’s suspension ruling.
The court ordered Loterj to take immediate action by suspending operators that failed to enable geolocation technology, ensuring that their operations were strictly limited to the state of Rio de Janeiro.
In a document submitted to the Supreme Court, the State of Paraná responded to Loterj’s claim that the Paraná State Lottery (Lottopar) could not impose the ‘geolocation local,’ claiming it would lose control over the virtual offerings by its accredited agents, both within and outside Paraná’s borders. As an amicus curiae in this case, Paraná has stepped in as a third party to provide critical information.
According to the State of Paraná, Loterj was notified of the decision on January 2 and had five days to comply, with the deadline expiring on January 9. “More than 14 days have passed since the deadline, and it has still not complied with the injunction, in clear affront to this distinguished Supreme Federal Court,” the document states.
The State of Paraná insists that implementing territorial restrictions is entirely feasible and has successfully done so itself. It further argues that the implementation of geolocation tools does not necessitate direct technical intervention from either Loterj or Lottopar, placing the responsibility of adapting these technologies squarely on the operators.
“Therefore, the claim of technical difficulties in implementing these mechanisms is unfounded and completely incompatible with the practical reality and the technological resources currently available,” the document reads. “Such claims constitute an attempt to gain time and postpone compliance with the court decision,” it adds.
The injunction is set for analysis by other ministers in a virtual plenary session from February 14 to 21, 2025. Meanwhile, Paraná is suggesting a daily fine of R$50,000 (US$8,500) to force Loterj to comply with the decision.
Source: iGamingBrazil
