Loterj Head: Shift to Black Market Could Reach Incalculable Levels

Provisional Measure (MP) 1.394 has been in force since September 25. The measure took federally licensed operators offline and also ended betting permits issued by the states. The states had been able to run their own lotteries since a 2020 ruling by the Supreme Court (STF).

Since 2023, Rio de Janeiro's Loterj had been licensing sports betting and online casino brands across the country. That practice ended when the Supreme Court ordered operators whose betting was not limited to Rio's borders to stop their activities. Fixed-odds betting made up a significant part of Loterj's revenue, and this income funded the state's social programs.

Congress's voting period on the measure has been extended to March, and a decision is expected in 2027. Esteves said Loterj took office in March 2026 and is planning new products. She explained that they are acting within the legal framework on accredited companies and fee and license payments.

Esteves said Loterj's main challenge is not regulatory but maintaining its social function. She explained that the revenue supports the operation of the day care centers in Vila João, Jardim Batan and Cidade de Deus, as well as the Lar da Mulher shelter, which houses women who are victims of violence and their children.

Loterj has issued a call to select up to five civil society organizations to set up digital inclusion and education support rooms for vulnerable young people aged 12 to 18. Up to 2.5 million reais (410 thousand euros) will be allocated for this from the Social Support Program.

Esteves's greatest concern, however, is that the ban will lead to a shift to the black market, and that this will grow into something uncontrollable.