Ahead of the launch of sports betting in Brazil, the country remains focused on ensuring the implementation of effective regulations that create a market that is competitive, fair and channels the consumers toward the legal offering. One particular focus of the government is ensuring it has all the power required for regulating gambling activities across the country.

Limits to Loterj-Issued Betting Licenses

Previously, the Rio de Janeiro State Lottery, Loterj, issued betting licenses that are valid across the country. This followed a court decision that permitted the lottery to provide such licenses. However, the government disagreed with this by engaging in a legal battle that sought to overturn the court’s decision.

The effort is led by the Attorney General’s Office (AGU) and seeks to ensure that Loterj-licensed betting operators won’t be permitted to operate across the country. The main concern with the nationwide betting availability by Loterj-licensed operators is that it would impact the stability of the market.

Now, as announced by NEXT.io, the AGU’s efforts received support from the Public Prosecutor’s Office (PGR). In a brief filed with the country’s Federal Supreme Court on Friday, the PGR supported the previously imposed preliminary injunction against Loterj, which effectively prohibited the lottery from providing betting licenses that are available nationwide.

Notably, PGR explained in its position that Loterj easing the territorial restrictions for betting licenses may disrupt the market balance. This was a similar position to the one described by the AGU. At the same time, the PGR wrote that the existing licensing regime enforced by the Loterj serves as a “perverse incentive to predatory competition between federated entities, analogous to a scenario of fiscal war.”

The Country Prepares for Sports Betting Market Launch

Brazil is scheduled to launch its legal sports betting market on January 1, 2025. Ahead of this key milestone, the country implemented a transition period starting this month, enabling operators to secure licenses. So far, more than 100 companies have secured approval to offer their services during the transition period which is expected to end on January 1.

Many recognizable gambling operators have already set their sights on Brazil, considering the market’s exceptional potential fueled by passionate sports fans. Still, some processes require finalization such as the coverage of betting licenses offered by Loterj.