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Brazil enforces geolocation systems for state lotteries
The Federal Supreme Court of Brazil made a decision against the Rio de Janeiro State Lottery (Loterj) in a case about geolocation systems for online betting platforms.
The court agreed with the federal government that online betting platforms must use geolocation systems to ensure users are within the state’s borders.
Loterj changed its lottery system so users could simply say where they were located instead of using geolocation technology. The federal government objected, saying this violated rules that restrict lottery participation to people physically in the state.
The court, led by Minister André Mendonça, said geolocation technology isn’t directly mentioned in the law but is the only way to guarantee compliance in the region. Allowing users to self-declare their location can’t work because it creates fake boundaries and makes oversight impossible.
Minister Mendonça underlined that geolocation technology is essential for making sure lotteries are compliant to the law and operate fairly. He elaborated arguing that failing to enforce measures creates room for conflicts between states, as well as further issues with how public services are managed under the constitution.
Although Loterj claimed that the law doesn’t explicitly require geolocation systems and insisted their changes followed the rules, the Court decided that Loterj’s changes broke federal laws, which require lotteries to only allow participation from people who are physically in or live within the state.
Confirmed that states can only run lottery systems within their own geographic and legal boundaries, the Court also made it clear that the federal government has sole authority over multi-jurisdictional gambling operations, preventing states from operating beyond their borders. The Court rejected Loterj’s new lottery rules and ordered them to bring back geolocation systems within five days. The federal government supported the decision, saying it was important for fair management of lotteries across Brazil. Loterj, however, expressed frustration about geolocation systems being costly and difficult to set up.
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