Federal Supreme Court confirms Rio-only betting restrictions for operators licensed by Loterj

The Federal Supreme Court (STF) held a virtual plenary session on Friday (21) to decide on the operational scope for betting companies licensed by Loterj in Rio de Janeiro. A majority of the ministers — Gilmar Mendes, Alexandre de Morais, Flávio Dino, Cármen Lúcia, Cristiano Zanin, Nunes Marques, and Luís Roberto Barroso — supported rapporteur André Mendonça’s proposal to restrict these companies to operating solely within the state’s borders.

Justice Luiz Fux concurred with Mendonça’s decision but introduced a condition. He stated: "The effects must be modulated to preserve the possibility of executing contracts in force and signed before the granting of the precautionary measure."

Later in the session, Justice Dias Toffoli modified his vote to align with Fux’s perspective, stating that existing contracts should remain effective until the Original Civil Action (ACO) filed by the federal government is fully addressed by the plenary. The scheduling for this vote is pending, with President Luís Roberto Barroso set to determine the date.

Under the current ruling, companies accredited by Loterj are barred from offering sports betting and online games outside Rio de Janeiro until the merits of the ACO are decided. 

This decision builds on an earlier measure from January when Justice André Mendonça suspended nationwide operations of sports betting and online games by these companies, directing Loterj to enforce geolocation criteria to limit activities within state lines. After a series of appeals by Loterj, Mendonça ultimately rejected the challenges, warning that noncompliance would result in fines against both Loterj and its president, Hazenclever Lopes Cançado.

In response, Loterj promptly issued an ordinance to suspend all out-of-state operations until the court rules on the ACO.