LOTERJ President Defends State Regulatory Model Against Federal Fixed-Odds Betting Ban Ahead of Supreme Court Hearing
LOTERJ president Fabíola Esteves defended regulated betting safeguards, Pix-based traceability and action against illegal operators at SBC Digital Brasil Day. This precedes the Supreme Federal Court's 3 November hearing on Provisional Measure 1.394/2026, which bans fixed-odds betting and voids existing licenses. The case tests state versus federal authority over gambling regulation.
SCCG Take — A upheld ban would disrupt state-licensed operators and social funding streams, amplifying illegal market risks that LOTERJ's framework explicitly targets.
Fabíola Esteves, president of Rio de Janeiro's state lottery regulator LOTERJ, has defended the importance of regulatory safeguards and enforcement against illegal gambling as Brazil prepares for a Supreme Federal Court hearing on the future of fixed-odds betting.
Speaking at SBC Digital Brasil Day on 28 October, Esteves detailed LOTERJ's licensing framework and security measures. Her comments respond to Provisional Measure (MP) 1.394/2026, which prohibits fixed-odds betting nationwide and mandates termination of existing federal and state authorisations. The measure is now under challenge before the Supreme Federal Court, with a public hearing scheduled for 3 November to assess its legal and economic consequences.
LOTERJ's Security Measures and Fight Against Illegality
Esteves highlighted LOTERJ's mandate that licensed operators use Pix, Brazil's instant payment system, to ensure transaction security and financial traceability. She warned that unauthorised platforms expose consumers to greater risks and can connect to wider criminal activity. The regulator has also formed technological partnerships, including with WA.Technology for oversight of video lottery terminals in Rio de Janeiro.
Esteves became LOTERJ president in March 2026 after nearly three years as vice-president. She previously spoke at Rio Innovation Week in August, arguing that regulation must build trust, enable economic development, and protect the public interest while adapting to technological change.
Revenue Transparency, Social Programmes and Court Implications
LOTERJ has collaborated with RioSolidario on initiatives supporting vulnerable children, adolescents and women. These include early childhood education centres and accommodation for women facing domestic violence. Esteves has called for greater transparency in how lottery revenues are distributed to fund such public programmes.
The Supreme Court proceedings will examine the constitutionality of MP 1.394/2026 and its effects on operators, regulators and organisations reliant on gambling-derived funding. The decision will shape whether state-level frameworks like LOTERJ's can continue or must yield to the federal prohibition.
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