Rio de Janeiro's state lottery regulator, Loterj, is pursuing legal action to recover millions of reais it says are owed by Rio Pag.
Rio Pag was the company contracted to process lottery and betting payments under a contract signed in 2023, which, according to Loterj, still owes around BR4m of a nearly BR21m debt and has refused to settle it. Loterj is expected to request a bank secrecy waiver against the company in the coming weeks to trace the funds.
The dispute began in April, when Loterj requested the return of BR18.5m that had been held in a custody subaccount managed by Rio Pag.
The regulator had established the custody arrangement by the start of 2025 after betting operator Pixbet failed to pay contractual fees and attempted to withdraw funds owed to the authority, prompting Loterj to restrict how payments processed by Rio Pag could be moved.
After Loterj's leadership changed, the new administration moved to end that custody arrangement and demanded the full amount back.
Three formal requests for repayment were initially ignored, though Rio Pag transferred BR2m in June. In July, Loterj asked Rio de Janeiro's Court of Justice to freeze BR20.9m in the company's accounts, including contractual interest and penalties, but the court found only BR726,000 available.
A week later, Rio Pag transferred BR16.5m via Pix from one of its accounts, bringing total repayments to BR18.5m, the amount originally held in custody. Loterj maintains that roughly BR4m more is still owed in interest, adjustment and penalties, which Rio Pag disputes, calling the additional charges contractually unfounded.
Brazil's regulated betting market recorded nearly 10 million active users in March, with Rio de Janeiro emerging as the leading hub for the activity.
