Hazenclever Lopes Cançado, the president of the municipality, said that the signing of the agreement marks a milestone for Brazil’s betting market.

“Since I took over management in July last year, I had the objective of publishing the accreditation notice for sports betting. We have achieved more than that. We have the first company accredited and ready to operate in our country. I am grateful for the unconditional support of the Governor Cláudio Castro and the Secretary of the Civil House, Nicola Miccione, who believed in the project. Thank you very much for trusting in the work and dedication of our entire Loterj team,” the official said in a statement posted on the lottery web site.

Before being approved, Rede Loto went through a process of proving that it met with all the technical and legal requirements as stipulated under state law, following Loterj’s policy  of social responsibility, such as promoting safe play, combating fraud, as well as the  prevention of money laundering and terrorist financing.

It may also offer sports betting via retail points of sale. In addition to Rede Loto, the Accreditation Notice stated that other interested companies can register and also offer sports betting in the state.

In April 2022 Loterj announced that it would hold a hearing on how instants and sports betting could be operated in the state. The lottery stated it would include both online and retail lottery outlets. In May this year Loterj published the requirements for companies interested in competing for the licence to run and develop fixed-odds online and land based sports betting.

In return operators must pay a payment of 5 million reais ($992,000) as a fixed fee, plus 5 per cent of gross revenue (GGR) per month. In addition the operator must also incorporate responsible gambling measures, have systems in place to reports suspicious transactions and be able to ensure that sports betting on Loterj’s platform is limited to state boundaries.