Investigation shows online betting and slot sites from Paraíba and Rio de Janeiro took bets from outside their territories. Online betting and slot platforms with licenses from Rio de Janeiro and Paraíba states operate outside their territories. Brazil’s 2023 gambling law prohibits this activity. Six state-approved sites took wagers from São Paulo users during an investigation. The law limits these operations to state borders only.

Geographic Restrictions Prevent Cross-State Gambling

Law 14.790 lets the Union, states and Federal District run or license fixed-odds betting and lottery services. Geographic jurisdictions restrict these operations completely. São Paulo bettors cannot place bets on Rio de Janeiro operations legally. G1 reported an investigation that registered accounts on six platforms successfully. Investigators deposited funds and placed wagers between BR2 ($0.40) and BR7. Four platforms had registration in Paraíba state. Two platforms operated with Rio de Janeiro licenses.

Legal experts say cross-border activity damages market fairness. These actions might break administrative and contractual obligations, too. “States that ignore geolocation limits create competition wars among themselves. Nobody wants this situation,” Luiz César Loques explained as a Law Researcher. Telma Rocha Lisowski teaches Constitutional Law as a professor. She said states must enforce compliance within their territories. States need to penalise operators who cross territorial boundaries.

Lotep Oversees Paraíba’s Lottery and Betting Operations

Lotep runs Paraíba’s lottery authority operations. They claim to maintain “permanent oversight” over betting activities. Investigations start when they detect irregularities in operations. Sanctions include fines and licence revocation possibilities. Lotep reported BR1.7m revenue from betting operations in 2025. The Rio de Janeiro Government gave no response to comment requests.

Brazil has five states with operating betting licences currently. The Ministry of Finance’s Secretary of Prizes and Betting reminds states about territorial restrictions. States must keep operations within their own territories strictly. The Office of the Attorney General might take judicial action. Repeated violations trigger this legal response.