Loterj has filed a lawsuit in the Supreme Federal Court (STF) this Sunday (13) to block the request made by the Attorney General of the Union (AGU) for the Court to prohibit the operation of the accredited bets in the state with national action. The agency requests the denial of the preliminary injunction and claims that "the Union's intention, if accepted, will cause significant damage not only to Loterj, but also to the licensed companies and to the state and federal treasuries themselves."
“The potential invalidation of these legal acts would imply multimillion-dollar compensations, significant loss of tax revenue, and the disruption of an entire regulated economic sector,” points out Loterj in the challenge submitted to the STF.
In the lawsuit, Loterj defends its notice that the Union has not been able to demonstrate that its claimed right is sufficiently clear. The petition also states that:
“The territorial competence of Loterj is supported by precedents from this very Ex. STF, which recognize the autonomy of the states to explore lotteries and regulate them within their scopes, which is the case. Moreover, the fact that the rectification of the notice includes a formal declaration from the bettors, who are playing in the territory of Rio de Janeiro, only shows that Loterj is taking measures to maintain the territoriality of its contest, subjecting the bettors to its direct jurisdiction, which weakens the unfounded argument of violation of territoriality”.
In the request, Loterj contests arguments from the AGU that the operation of the autarchy from Rio de Janeiro would not have rules regarding crimes. Loterj ensures that “implemented a robust system for preventing money laundering, including rigorous identification of clients, monitoring of transactions, and reporting of suspicious activities”.
Loterj also claims that all operators accredited by it pay federal taxes, which would constitute the “only effective source of revenue for the Union in the sports betting sector” currently. “This situation contrasts strongly with that of the sites listed in the “positive list” disclosed by the Ministry of Finance, which operate without any defined tax obligation”, reinforces the agency in its request.
With the action against the bets accredited by Loterj by the Union, the agency states that:
“In light of this fact, the real interest of the Union in the present action is questioned. By seeking to suspend the operations regulated by Loterj, the Union would be, in practice:
1. Renouncing significant tax revenues already underway.
2. Allowing the operation of sites listed in its “positive list” without proper authorization, on the margins of regulation and without paying taxes, until the first federal license is granted.
3. Creating a regulatory and fiscal vacuum that could last for months or even years, given the complexity of the federal regulation process”.
Source: GMB
