Brazil: New regulation enables the installation of VLTs in Rio de Janeiro bars

Governor Cláudio Castro (PL) published a series of rules in the Official Journal on Tuesday for the implementation of Video Lottery Terminals (VLTs), totems, and betting terminals in Rio. The regulation also provides for the possibility of installing this equipment in various commercial or themed establishments, such as sports bars, which emphasize the bettor's experience.

According to the text published in the Official Journal, all transactions made on these machines will be via Pix to facilitate the traceability of operations. In the case of Brazilians, the account must be linked to their CPF (Individual Taxpayer Registration Number), and for foreigners, it must be linked to their passport number. The use of cash was ruled out to further dispel any possible association of VLTs with slot machines.

The program will be under the responsibility of Loterj, the Rio de Janeiro state lottery. On social media, President Hazenclever Lopes Cançado highlighted that the project could generate up to 65,000 jobs and also aims to strengthen tourism.

“It's not just a rule. It's the consolidation of the largest regulated VLT market in the world, a milestone that brings modernity, security, responsibility, and generates real opportunities. The decree establishes strict rules for security, traceability, and consumer protection, always in line with international best practices. It's innovation with responsibility,” he wrote.

How the VLTs machine operates?

A state government report explains that VLTs operate differently than traditional slot machines. According to the document, the machines have a similar appearance, but opposite systems. Traditional machines have a physically installed random number generator system, without integration with “central monitoring systems, making them more susceptible to manipulation and fraud”. Government-regulated equipment, on the other hand, will be connected to a central station with real-time monitoring, subject to certification and independent audits.

The state government decree provides details on the installation and operation of the machines, including:

• Control: the new standard prohibits the installation and operation of any equipment not approved by Loterj;
• Exclusivity - according to the decree, “the presence of slot machines, parallel lottery machines, local RNG terminals, or any other devices not approved by the Authority is expressly prohibited in physical spaces that sell lottery products authorized by LOTERJ.”

The equipment can only be used by adults who will need to log in using a QR code linked to a multi-factor authentication system, which must include facial biometric identification associated with an additional verification factor.

All access and interactions with the equipment will be recorded in a log, a type of file that records all steps taken in a system and can be accessed for auditing purposes.

By Felipe Grinberg