Brazil’s Rio de Janeiro state lottery (Loterj) is facing scrutiny after official documents revealed inconsistencies in the reporting of a BR33.7m shortfall linked to its payment services operator.
Loterj formally identified the shortfall in February 2025, describing it as “default” related to the operator’s handling of lottery revenues.
The amount included BR32.8m tied to numerical games and an additional BR900,000 linked to instant lottery products.
However, the figure does not appear in the lottery’s 2025 oversight report.
The discrepancy has raised questions about internal controls and reporting practices within the state lottery.
Legal experts note that, under concession models, public entities retain responsibility for supervising operators and ensuring contractual compliance, including the recovery of any losses to public funds.
There is also no clear indication that the full amount was recovered or formally accounted for in subsequent reports.
Edgar Guimarães, a retired lawyer and legal consultant for the Court of Auditors of the State of Paraná, highlighted that autonomous entities like Loterj have the autonomy to manage their own budget, but “have a duty to adequately oversee the execution of concession contracts.”
“The State of Rio de Janeiro transfers the provision of a public service to a private entity under certain conditions. If, during the course of this contract, the provision of the public service is not being executed correctly – as in this case, even acknowledged by the company itself in the records – at the very least, Loterj should initiate a punitive administrative process and apply a fine, demanding that the company compensate for the damage caused to the public treasury,” he said.
Loterj recently confirmed the appointment of Fabiola Esteves as its new President, following her tenure as Vice President over the past three years.
Loterj has been invited to join a UN Tourism initiative, becoming the first gambling authority in Brazil to participate in the organisation’s strategic network
