The Brazilian Institute of Responsible Gaming (IBJR) issued a statement in response to the recent conflict between the Ministry of Finance and the Rio de Janeiro State Lottery (LOTERJ). The Ministry of Finance urged LOTERJ to cease the registration of lottery modalities operating agents that do not comply with the territorial restrictions established by federal legislation. LOTERJ, however, allows companies registered in Rio de Janeiro to operate throughout Brazil, violating federal regulations.
In addition, LOTERJ is applying tax values and rates different from those established by the Federal Government, raising concerns about a possible "tax war" between states and increasing legal uncertainty in the sector.
The IBJR has learned that LOTERJ has sent letters to companies requesting the immediate interruption of operations of platforms that are allegedly operating irregularly in Rio de Janeiro without a license granted by LOTERJ. Failure to comply with these requests has triggered the opening of administrative sanctioning processes, questioned by the IBJR.
This was answered by the Instituto Brasileiro de Jogo Responsável, IBJR after the provisional measure of sports betting
Although the states have the authority to operate lotteries as a public service, legislation on the subject remains the exclusive competence of the Union.
Therefore, the IBJR recalls that the Federal Law establishes that the Ministry of Finance will establish conditions and deadlines for the adaptation of companies to the provisions of the law.
