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IBJR challenges Loterj in action at the STF regarding ‘Bets’ geographic limit

The Brazilian Institute of Responsible Gaming (IBJR), which represents companies with around 75% of the national online betting market, wants to get involved in the fight for state lottery authorizations of ‘Bets’ – as operators are called. Recently, the IBJR asked the Supreme Federal Court (STF) to participate as amicus curiae in a lawsuit filed by the Attorney General's Office (AGU) against Loterj and admits that it is possible to impose geographic limits on sites accredited by the agency.

The term amicus curiae is used to designate a person or entity that contributes their knowledge to assist judicial decisions.

In this petition, the IBJR challenges the Rio de Janeiro State Lottery's claim that there are no technical means of imposing geographic limitations on the companies' operations.
 


According to the IBJR, the platforms already have access to a variety of geolocation solutions available on the market, contrary to what Loterj argued in the lawsuit.

In a decision at the end of January, Minister André Mendonça had determined that Loterj should take measures to prevent companies accredited by it from receiving bets made outside the state of Rio de Janeiro, under penalty of a daily fine of R$500,000 (US$86,000)  to the agency and R$50,000 (US$8,600) to its president.
 


Loterj points out difficulties in implementing geolocation blocking systems and asks the STF for a 180-day deadline for technological solutions to be developed to guarantee the restriction of the operation of the 'Bets' accredited by it.
 


At the same time, Loterj maintains the legality of the operation, claiming that bettors formally accept that their bets are being made in Rio de Janeiro, where the agency's servers are located. Furthermore, Loterj compares its operations to those of any other e-commerce business.
 


In its defense, Loterj points out that state regulation came before federal regulation and that the delay by the Union in creating rules for the iGaming sector caused Brazil to fail to collect millions in taxes, while it itself contributes to the federal coffers with taxes destined for the Union.

Source: GMB / Veja