Loterj refutes the legality of the SPA’s list of authorized operators. In the lawsuit, Loterj asked that the list of federally approved operators be immediately suspended until the operators pay their required license fee and face a bidding process to secure their license.

Up to 100 operators and 223 brands have been approved, continue to operate in Brazil ahead of the legal launch of the online betting market on January 1, 2025. The initial list was published by the SPA on October 2 but has since been updated to include 11 additional companies.

As part of his case, Loterj insists the listing was made before the operators met all the regulatory requirements, including paying the BRL 30m (£4m/€4.7m/5.2 million dollars) to obtain a betting license. It also notes that the Federal Supreme Court (STF) did not conduct any bidding process as stipulated before the license applications were filed.

Therefore, the state regulator believes that the authorized operators have been given an unfair advantage. It believes its lottery licensees should be classified as regulated and able to operate by the end of 2024.

Those who have not been placed on the SPA approved list will be blocked in Brazil. Almost 3,500 domains have already been blocked by the National Telecommunications Agency (Anatel) after SPA published a second list of illegal operators on Thursday (October 31).

Another trial involving Loterj in Brazil

Tuesday’s lawsuit is the latest move in an ongoing legal battle between Loterj and the federal government.

In October, Loterj asked a preliminary injunction dismissing a government lawsuit prohibiting Loterj licensees from operating outside the borders of the state of Rio de Janeiro.

A separate federal lawsuit filed Oct. 11 by the Attorney General’s office challenged former regulations that gave Loterj’s online betting licensees the power to operate nationwide despite not having a federal license.

It remains to be seen whether Loterj’s request to block the case will be granted. If it is, the ongoing nationwide ban on Loterj licensees would be lifted.

SPA is also facing it a series of additional legal cases from operators who have been removed from the approved list but believe they meet the requirements to be included on it.