Judge Pablo Zuniga Dourado, of the Regional Court of the First Region (TRF1), suspended the blocking of 115 online betting platforms in Rio de Janeiro, following a request from the National Association of Games and Lotteries (ANJL).

The magistrate also endorsed the transition window established by the federal government. In May, the Ministry of Finance published an ordinance with rules for obtaining authorisation for bets to operate in Brazil. In the same document, the Ministry established a transition period for companies to apply for a licence, until 31 December 2024.

"Considering the transition period consisting of the granting of authorisation until 31/12/2024 for companies that apply for authorisation within ninety days, as well as the attribution of the Ministry of Finance to grant authorisations, it does not seem reasonable to maintain the decision that determined the suspension of fixed-odds lottery activities," wrote the judge.

Caio de Souza Loureiro, a partner in the Gaming & E-Sports area at TozziniFreire Advogados, says that federal legislation already provided for a transition period for online gaming platforms to apply for licences, even before the first court decision.

However, the judge, in his first judgement, argued that a Rio de Janeiro state decree would prevent these companies from operating in the state if they were not accredited by Loterj.

“However, the state of Rio cannot, by decree, supersede or contradict federal law”, he said.

Understand the confusion

In ordering the blockade, the judge complied with a request from the Rio de Janeiro State Lottery (Loterj). In 2023, Loterj established a series of rules for bets to "regulate" themselves in the country - including for them to operate in other states.