“The idea is not to collect revenue, but to regulate what already exists and is completely uncontrolled. To formalize what is already happening and work toward eliminating this whole contravention issue,” explained the governor.
When asked about concerns that criminals might exploit the games under a legal guise, Castro said that the decree will make it possible to identify those profiting excessively from this market.
“I’m not very concerned about who the entrepreneur is. I’m concerned that anyone wanting to operate does so within the law. We must know who they are and, through the payment system, identify who is profiting excessively. The payment system is licensed by the state. It’s a way of taking action in this scenario. We see daily increases in disputes and understand this is a way to gradually reduce and end this criminal activity,” he stated.
Castro also mentioned that advertising campaigns will promote a healthy relationship with gambling and that the Loterj system will allow blocking access for Bolsa Família recipients:
“What we want is to create a healthier gaming environment, where we can identify players, see who is overdoing it, who is losing everything. The Loterj system allows this and enables the creation of advertising campaigns to encourage more balanced and regulated play. With this system, we can block access for Bolsa Família beneficiaries, something that is currently impossible to enforce on the streets.”
Understanding the decree
The regulation will also allow the installation of these machines in various commercial establishments, such as bars, or themed venues like sports bars, which broadcast events from multiple sports. The program running on the machines will be managed by Loterj.
To operate in this market, companies must be licensed by the state agency and pay a fee of R$5 million, valid for five years, as well as remit 5% of revenue to the state government. Implementation of this new betting system is expected to begin in 2025.
The system will operate under two models. In one, users will purchase a type of virtual ticket issued by Loterj, and when processed in the machine, they will immediately know if they have won. Terminals will also allow sports betting in any discipline—for example, placing a small wager on who will score the first goal in a football match or the number of cards issued. This practice is already used by betting companies authorized by the federal government and in other Brazilian states.
For VLTs, the system will not allow bets on known gambling games such as “tigres” or virtual slot machines. However, the machines may resemble other existing machines. Panels, for instance, can display repeated symbols, like numbers or identical figures, to announce prizes.
According to the Brazilian Legal Gambling Institute, other states have already regulated this practice. Paraíba has 4,000 virtual lottery terminals, and Paraná has 2,500. In these states, machines are installed in casino-like environments where players sit in front of machines placed side by side in dimly lit rooms decorated with bright colors—and can play continuously.
“This is an electronic version of tickets previously sold on paper. Each licensed company will receive a numbered series from Loterj, available on the VLT terminals. When the bet button is pressed, the result will be displayed. Loterj will define maximum and intermediate prizes. Typically, ticket issues range from 2 to 4 million. Players decide how much to wager. Lotteries usually offer a minimum and maximum bet between R$1 and R$20 (US$0,18 and US$3,6) on average,” explained Magnho José, president of the Legal Gambling Institute.
Transactions via Pix
According to the government, all transactions—both betting and prize collection—will be processed via Pix.
Regulatory efforts began in February. Loterj held meetings with companies operating this type of game in Paraná, Paraíba, and countries such as Mexico and the United States. State lottery representatives also met with the Federal Revenue Service and the Council for Financial Activities Control (COAF) to discuss mechanisms against fraud and money laundering.
On social media, Loterj President Hazenclever Lopes Cançado highlighted that the project could generate up to 65,000 jobs and strengthen tourism: “This is not just a regulation. It is the establishment of the world’s largest regulated VLT market. A milestone that brings modernity, safety, responsibility, and real opportunities,” he wrote.
In a statement, the Secretariat of Prizes and Betting of the Ministry of Finance emphasized that “bingo and roulette cannot be offered through kiosks, as this violates the law,” while poker offerings will be analyzed case by case. The agency added that machines “can be offered as long as they comply with existing legislation, offering products that are already legalized and do not violate specific laws.”
The Federal Revenue Service (RFB) reported that it was contacted by Loterj but did not discuss the installation of machines: “In contact with RFB, besides clarifying that electronic gaming is not within the agency’s jurisdiction, Loterj presented some complaints, and RFB followed standard procedures,” the statement reads.
What Loterj says
“Rio de Janeiro is taking a historic step by implementing an innovative control and traceability model, eliminating any possibility of manipulation, money laundering, or fraud. Implementation is expected to begin in 2025. With the decree in force, the technical phase begins, in which licensees submit physical equipment—both hardware and software—to strict security, traceability, and certification requirements. Before conducting Proof(s) of Concept, they must indicate the geographic location of VLT stores, sports bars, or non-exclusive establishments where terminals will be installed. It is important to note that Loterj acts exclusively as a regulatory body and does not sell equipment.
This modality is provided for under federal law and includes the concept of ‘Sports Bars,’ inspired by mature international regulated markets. These are themed, secure environments designed to offer a complete, regulated experience exclusively for those over 18.
Loterj will receive 5% of GGR (Gross Gaming Revenue), as set out in Licensing Notice No. 001/2023. The state of Rio de Janeiro does not allow illegal or improvised games under its regulation.
Each bet will be recorded with the time, location, CPF (tax ID), and amount wagered, making the system fraud-proof and monitored 24/7. Bets will have accessible values so that adults over 18 can participate responsibly. Authentication will use QR codes and facial biometrics integrated into registration, allowing customized limits for each player—a mechanism essential to prevent excesses, ensure responsible gaming, and protect players.
What has been built in Rio de Janeiro is even more advanced, incorporating facial biometrics and Pix as the exclusive payment method. No other Brazilian state has such a robust legal and technical framework.
The implementation of VLTs represents a true economic revolution for Rio de Janeiro, generating around 65,000 jobs across technology, security, operations, customer service, marketing, logistics, construction, and administration.
These new hubs will also be major drivers of tourism, attracting visitors and strengthening sectors such as hospitality, gastronomy, transport, and events—a decisive boost for the local economy.”
Source: O Globo
