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Fake it till you… get sued? Court shuts down fake Loterj operation 

A court in Rio de Janeiro has ordered the suspension of an illegal operation after prosecutors alleged the company fraudulently used Loterj’s identity to appear licensed.

1 min read
Rio de Janeiro
Key Points
A Rio court suspended an unlicensed betting operation following a lawsuit by prosecutors
Authorities allege the company falsely used Loterj’s branding to appear authorized
The ruling also targets websites, payment processing and the creation of new illegal platforms

A court in Rio de Janeiro has ordered the immediate suspension of an illegal betting operation, after the company behind the platform fraudulently used Loterj’s branding to give the impression it was authorized to operate.

The allegations came from the state’s Public Prosecutor’s Office (MPRJ).

The decision follows a civil lawsuit filed by the 7th Public Prosecutor’s Office for the Protection of Public Assets and Citizenship, which accused Digital Dreams Soluções Tecnológicas em Sistemas e Entretenimentos of forging documentation and misusing the visual identity of the Rio de Janeiro State Lottery (Loterj).

According to prosecutors, the company continued presenting itself as a legitimate operator despite having previously been deemed ineligible during Loterj’s accreditation process. 

The lawsuit also alleges that the operation relied on a network of betting websites, companies and individuals working together to maintain the illegal business.

Besides ordering the immediate suspension of betting activities, the court imposed a series of measures aimed at dismantling the operation. 

These include identifying those responsible for the domains used by the platforms, blocking access to the websites under investigation, prohibiting the creation of new betting platforms without government authorization and preventing payment providers from processing transactions linked to the operation.

Recently, Brazil’s regulated betting market recorded almost 10 million active users with Rio de Janeiro emerging as the country’s largest betting hub, with almost 1.8 million active users.

Loterj President Fabíola Esteves spoke to Global Gaming Insider after she took on the new role.

Good to know

Loterj has announced updates to its health and food assistance programs, increasing employee benefits

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