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LOTERJ defends regulated betting model as Brazil faces industry prohibition

Fabíola Esteves, president of Rio de Janeiro’s state lottery regulator LOTERJ, has defended the importance of regulatory safeguards and action against illegal gambling as Brazil prepares for a Supreme Federal Court hearing on the future of fixed-odds betting. Speaking during SBC Digital Brasil Day o

November 2, 2026 2 min read

Fabíola Esteves, president of Rio de Janeiro’s state lottery regulator LOTERJ, has defended the importance of regulatory safeguards and action against illegal gambling as Brazil prepares for a Supreme Federal Court hearing on the future of fixed-odds betting.

Speaking during SBC Digital Brasil Day on 28 October, Esteves highlighted LOTERJ’s experience in regulating betting operations and the security measures introduced under its state licensing framework. Her comments followed the introduction of Provisional Measure (MP) 1.394/2026, which prohibits fixed-odds betting in Brazil and provides for the termination of existing federal and state authorisations.

The measure is being challenged before the Supreme Federal Court, with a public hearing scheduled for 3 November to examine its legal and economic consequences. Esteves highlighted LOTERJ’s requirement for licensed operators to use Pix, Brazil’s instant payment system, as part of its approach to transaction security and financial traceability. She also emphasised the need to combat illegal gambling platforms, warning that unauthorised operations expose consumers to additional risks and can be associated with wider criminal activity.

The LOTERJ president has previously advocated regulatory modernisation to keep pace with technological developments in the gaming industry. Speaking at Rio Innovation Week in August, she argued that effective regulation should create an environment of trust that supports economic development while maintaining protections in the public interest.

The state regulator has also pursued technological partnerships, including cooperation with WA.Technology concerning the oversight of video lottery terminals in Rio de Janeiro. Alongside regulatory enforcement, Esteves highlighted the importance of transparency over how lottery revenues are distributed and used to support public programmes.

LOTERJ has worked with RioSolidario on social initiatives supporting vulnerable children, adolescents and women, including early childhood education centres and accommodation for women facing domestic violence. The regulator has presented these programmes as examples of the wider social contribution generated through regulated lottery activities.

Esteves, who became LOTERJ president in March 2026 after nearly three years as vice-president, has been involved in developing the state’s betting regulatory framework. Her participation in the SBC discussion comes as the industry questions the future of state-level authorisations under the federal prohibition.

The forthcoming Supreme Court proceedings are expected to address the constitutionality of the measure and its implications for operators, regulators and organisations receiving funding from gambling revenues.

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