While the controversial bill to fully legalize gambling in Brazil rests in a drawer in Congress, companies operating in the legalized slice of the sports betting market are mobilizing to broaden their reach. The goal is to migrate from the virtual world of 'Bets' to the physical one, a move that would open a highly lucrative front.
If on cell phone screens digital slot machines are already a hit with playful gaming characters such as the famous “tigrinhos,” Brazilian cities could soon host real-life machines. The business has already left the drawing board in Paraná and is advancing in Paraíba and Tocantins as well.
But it is in Rio de Janeiro that the project appears most ambitious, wrapped in the idea of reviving the times when gaming was widespread in casinos at Urca and the Copacabana Palace back in the 1940s. “We will be Brazil’s version of Las Vegas,” says Hazenclever Lopes Cançado, president of Loterj, who is leading the initiative.
VEJA gained access to details of the plan, which is beginning to take shape. The state lottery authority has registered nineteen companies authorized to install machines — the official goal is to reach 200,000 within two years, including in iconic Rio buildings such as the Hotel Nacional and the Jockey Club.
These spaces would host high-definition screens for sports broadcasts, restaurants, and show stages. The similarities to traditional casinos are no accident, but one key difference sets them apart — the nature of the machines.
Although they resemble regular slot machines, VLTs (video lottery terminals) are essentially an electronic version of scratch-off tickets. “The value and frequency of prizes are predetermined in a finite, numbered series approved and supervised by Loterj,” explains Magno José, president of the Brazilian Institute for Legal Gaming.
By rule, at least 65% of all funds collected must be paid out in prizes, and there is control through QR codes to ensure only adults participate, a crucial safeguard.
The first step to make such ventures viable was recently taken by Governor Cláudio Castro (PL), who issued a decree regulating the activity. He relied on the regulation of Bets, established by federal law in December 2023, which allows this type of service to be offered both online and physically.
State governments can issue regional licenses, based on a Supreme Court interpretation. By decision of Justice André Mendonça, endorsed by the full court, companies are required to operate strictly within the territory of the state that issued the license. The merits of the case are still under review.
Until the Supreme Court makes a final ruling, the rule remains in force. In other words, states like Rio are acting within the law. So far, the only requirement is that companies comply with national legislation — a model similar to that of the United States, where gaming is regulated state by state.
“Gaming is an economic activity in several countries. It generates jobs and boosts tourism, but it must be supervised,” Castro told VEJA, estimating the creation of 65,000 new jobs. “Regulation will bring security to bettors.”
What drives the “Las Vegas plan” is the potential to boost revenue and improve Rio’s fragile fiscal situation. Currently, the betting market yields about R$30 million (US$5.64m) per year to the depleted coffers of Guanabara Palace, a figure considered negligible compared to the vast potential of a tourist magnet like Rio.
In the midst of maneuvering for the 2026 elections, however, the project has faced resistance. Mayor Eduardo Paes, a candidate to succeed Castro, vetoed the granting of business permits as soon as he learned of the regulation.
Some companies were ready to begin operations. “If we are to build a Las Vegas, there must be proper legislation for opening casinos. The way this authorization was issued, we have no control,” argues Paes.
Source: VEJA
