for early access to the latest igaming videos!
and get the latest igaming news first!
The government of Rio de Janeiro took a landmark step in the control of gambling. Governor Cláudio Castro recently approved a decree to allow the installation of electronic betting machines in the state, such as Video Lottery Terminals (VLTs), totems, and terminals. The state lottery agency, Loterj, will be responsible for operating all these machines and monitoring, licensing, and auditing operations.
The decree separates these machines from illegal “slot machines.” Unlike secret versions, the new VLTs will be connected to a centralized monitoring system, independently tested, and built to ensure fairness and transparency.
How the New System Will Work
Two main models are to be introduced. In the first, the player purchases a virtual lottery ticket that is part of a pre-emitted series. When a player passes the ticket through a machine, they get an instant result of winning or not. Each sequence is single-use and cannot be reused, hence it cannot be manipulated.
The second model is based on sports betting terminals, where individuals are able to bet on a variety of events, say, who will kick the opening football goal or how many yellow cards a player will pick up. This format is already common in national and international gambling companies, but will now be state-owned.
All betting activities, be it bets or withdrawals, will be made using Pix, Brazil’s instant payment system. Additionally, biometric facial identification and QR code authentication will be used, in addition to transparency and responsible play.
Economic and Social Impact
The government foresees the establishment of the system in 2025 to generate 65,000 new employment opportunities in sectors such as technology, security, hospitality, construction, and logistics. Apart from employment, the scheme is also seen as a potential driver for tourism and entertainment. Sports Bars, a concept drawn from overseas markets, will integrate betting with recreation and social activities.
The system also promises immense public revenue. Licensed operators are required to pay a fee of R$5 million for five years and remit 5% of gross gaming revenue to the state. Such funds can support public programs and infrastructure.
Comparisons with Other States
Rio de Janeiro is not the only one to license virtual lotteries. Paraíba already has 4,000 installed, and Paraná has around 2,500. In all three states, the machines are often set up in casino-type environments with dim lighting and flashing decoration. But Rio’s setup is more technologically advanced in design, emphasizing centralized monitoring, biometric verification, and committed Pix transactions.
While the decree is an advance in legalizing and regulating gambling, the authorities issue a warning of potential harm. Psychoanalyst Artur Costa declares electronic lotteries to be highly addictive. Stimulation of dopamine while playing produces feelings of contentment, and together with the prospect of financial improvement, can develop dependency.
Legal analysts point out deficiencies as well. Miguel Godoy, a law professor of constitutional law, supports the initiative but stresses responsible gaming protection measures. He suggests measures such as self-exclusion programs, where players set internal limits on the amount of time or money invested, cutting losses before they spiral out of control.
Toward a Regulated and Transparent Market
It is reported by Loterj that the new model fills a gap of oversight left at the federal level by Law 13.756/2018. VLTs, while resembling slot machines, are state-regulated lottery machines, legal and sanctioned. All transactions will be recorded with time, location, CPF, and amount of bet, making fraud practically impossible.
Loterj president Hazenclever Lopes Cançado emphasized that Rio is developing “the biggest regulated VLT market in the world.” He also emphasized how the project can modernize the market, ensure traceability, and provide safe entertainment.
A Balance Between Opportunity and Risk
Rio de Janeiro’s ordinance represents more than new machinery in taverns or stadiums. It is an attempt to balance economic value with social responsibility. The gamble may transform amusement, tourism, and government incomes while bringing thousands of employment opportunities. But the fear of dependency and the need for increased safety precautions are at the core of the debate.
If it succeeds, Rio’s example can serve as a template for other states and countries, showing that technology, regulation, and creativity can come together to create an open, sustainable gambling business.
Source: BNL Data
