Brazilian Gambling Industry Stakeholder Wants Whitelist to Go

This is reflected in a new lawsuit filed with the 13^th Federal Civil Court of the SJDF, with the plaintiff, the Rio de Janeiro State Lottery, Loterj, insisting that the “whitelist” put forward by the government, and which allows stakeholders to launch gambling operations ahead of schedule is breaking the law.

Rio De Janeiro State Lottery Calls Gambling Whitelist Unconstitutional

The argument goes that the “whitelist” already breaks the existing gambling framework, and it is not permissible for companies to launch their operations without paying their licensing fees or indeed without an official gambling market being established.

The market is due to launch on January 1, 2025, but some operators have already made the so-called whitelist – some 100-odd operators are greenlit and have launched in various capacities.

This is not surprising, as many companies were operating in a sort of grey area. Brazil even ousted 2,000 illegal gambling websites in October, arguing that it will be closely monitoring which companies are operating. The government has added more than 1,400 websites to the original 2,000.

As a nod to reputable stakeholders, the government came up with a whitelist, thrashing out the final details and preparing the launch while also allowing operators to go ahead and offer online sports betting. The lawsuit though insists that this is a blatant infringement on existing gambling rules, and that the decision was in itself unconstitutional.

How the Tables Have Turned

Earlier this year, the Public Prosecutor’s Office and the Attorney General’s Office requested an official limit to be imposed on the number of licenses that the Rio de Janeiro State Lottery can issue, and specifically where Loterj-licensed operators may offer their products.

The fear is that by giving free rein to an operator, the market balance can be upset, allowing certain companies to gain momentum at the expense of a more equitable industry. Loterj is able to issue nationwide licenses, but these can be disruptive as they will tilt the balance and allow certain operators to potentially reap bigger dividends from their operations at the expense of others.

In the meantime, Brazil has launched a probe against Esportes da Sorte whose CEO, Henrique da Silva Filho, has turned himself in to the authorities who have been looking for him in connection with unauthorized gambling.

His arrest is part of a far-reaching operation against illegal gambling in Brazil, with the government confirming that it may opt to discontinue regulated gambling should it find it to be too harmful to consumers and should industry stakeholders fail to meet regulatory obligations.