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In Conversation with iGB: Rio de Janeiro Lottery President Hazenclever Lopes Cançado Intensifies Appeal Against Federal Court Limits on Licensee Activities
In a recent dialogue with iGB, Hazenclever Lopes Cançado, the President of the Rio de Janeiro Lottery (Loterj), expressed his ongoing commitment to contest federal court rulings that restrict the operations of its licensees.
Lopes Cançado firmly believes that Loterj licensees should have the freedom to operate throughout Brazil. This assertion comes despite several court injunctions asserting that Loterj is not in compliance with federal standards.
Historically, Loterj has been proactive in issuing sports betting tenders, even before the advent of the current federal online gambling regulations, which were implemented in the previous year. Notably, Loterj issued its inaugural sports betting tender in July 2023—well ahead of Brazil’s federally regulated betting market, which is set to launch in January 2025.
However, shortly after the new market’s establishment, Brazil’s Supreme Federal Court (STF) ruled to uphold a preliminary injunction preventing Loterj’s licensees from operating on a national scale, influenced by arguments from the attorney general’s office. The court mandated that Loterj licensees restrict their betting operations to the boundaries of Rio de Janeiro, demanding the implementation of geolocation tracking to enforce this restriction.
Describing the current circumstances as "artificial and technically unsustainable," Lopes Cançado argued that Loterj licensees play a crucial role in fostering positive social developments throughout Brazil by funding various state departments. He stated, “The revenue generated by local lotteries supports initiatives in health, education, sports, and social assistance, particularly aiding vulnerable communities. Disrupting this progress penalizes those who are most in need.”
He reiterated Loterj’s dedication to fulfilling its mission, emphasizing the importance of allowing licensed operators the ability to serve the entire nation.
Is There Hope for Loterj Amidst Injunctions?
Lopes Cançado believes that the injunction currently limiting Loterj’s operations is only a temporary measure. He is optimistic that the STF will eventually rule in favor of Loterj, rather than making the restrictions permanent. “This preliminary injunction is just that—preliminary,” he stated. “These limitations jeopardize not only the competitive edge of the sector but also the revenues that states depend on. They fail to consider the digital landscape, which inherently transcends physical boundaries.”
His confidence lies in the view that a deeper examination of the case will reveal the necessity for a more modern, equitable, and effective regulatory framework.
Lopes Cançado perceives Loterj as a "leading disruptor" in Brazil’s betting and lottery sector. He remains undeterred by the STF’s injunction and ongoing uncertainties, believing they won’t diminish trust in the state lottery. “Loterj stands strong. We maintain confidence due to our credibility, legality, and complete transparency,” he noted. “We operate with technical precision, abiding by the law, and steadfastly committed to the public’s interest. This trust only continues to grow among our partners, institutions, and the broader community.”
Addressing the Challenge of Illegal Operators
Since Brazil’s federal online market launch, a persistent issue has been the flourishing illegal gambling sector. Lopes Cançado argues that this illicit market adversely impacts state revenues that could fund public policies, deterring investment in the legal market while exposing bettors to the dangers posed by unregulated operators.
He advocates for a comprehensive government strategy to confront this dilemma. “A lack of coordinated action risks rendering the regulated market less competitive against an increasingly uncontrolled informal sector,” he cautioned.
Loterj’s Path Forward
This year, Loterj has taken strategic initiatives to strengthen its offerings, including the creation of an internal committee in April to explore video lottery terminals through research and technical assessments.
“Our goal is to reinforce Loterj’s status as a responsible, effective, and transparent institution that significantly contributes to the social, cultural, and economic growth of Rio de Janeiro,” concluded Lopes Cançado. “We aspire to be a leading reference in the lottery sector, committed to social responsibility and adapting to market transformations while innovating to meet global challenges.”
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