The Public Prosecutor’s Office of Rio de Janeiro has initiated legal proceedings in the Court of Justice of Rio de Janeiro against State Decree No. 49.804/25, which permits the use of electronic betting terminals in various commercial venues across the state. This action, brought by former Attorney General Antonio José Campos Moreira, seeks to declare the decree unconstitutional. The decree authorizes the installation of video lottery terminals (VLTs), betting kiosks, and smart point-of-sale devices in locations such as sports bars and retail stores, facilitating fixed-odds betting. The prosecutors argue that this state initiative contravenes Brazil’s federal gambling laws, which regulate such activities under a specific legal framework.
The core issue raised by the prosecutors involves the constitutional parameters set for gambling activities within Brazil. The Brazilian federal law only permits fixed-odds betting under strict regulatory conditions, typically limited to casinos and other officially sanctioned environments. By enabling the establishment of electronic betting terminals in a more widespread manner, the Rio de Janeiro state government is alleged to have overstepped its regulatory boundaries. As a result, the Public Prosecutor’s Office is calling for the immediate suspension of the decree’s enforcement, contending it breaches constitutional law.
This controversy is further underscored by local governmental disputes. In September 2025, the Municipal Secretariat of Public Order in Rio de Janeiro revoked the operational license of To All Games Operações Lotéricas, which had intended to install betting terminals at the Jockey Club Brasileiro’s Gávea Hippodrome site. This decision came after then-Mayor Eduardo Paes publicly opposed the placement of such terminals within the municipality. Acting Mayor Eduardo Cavaliere subsequently removed betting kiosks from the list of municipally licensed activities, illustrating internal opposition to the decree’s implementation.
The decree in question established specific regulatory conditions for VLT operations to distinguish these terminals from traditional slot machines. It mandated that all transactions be conducted through Pix, a Brazilian instant payment system, with mandatory identification through a CPF number for Brazilians or a passport for foreigners, and prohibited cash payments. These stipulations aimed to maintain legal compliance and highlight operational differences from slot machines. However, due to ongoing certification requirements to verify the technical distinctions between VLTs and conventional gambling machines, these terminals have yet to become fully operational.
The legal challenge by the Public Prosecutor’s Office not only questions the constitutionality of the state decree but also highlights broader concerns about regulatory interpretation and enforcement within Brazil’s gambling sector. The case could set a precedent for how electronic gambling is managed at state and municipal levels, potentially influencing future regulatory approaches and market operations.
As the legal process unfolds, operators and other stakeholders within the gambling industry are closely monitoring developments. The outcome could significantly impact the market landscape, potentially altering the regulatory framework and operational permissions for electronic betting terminals across Brazil. The resolution of this case will be pivotal in determining the balance of regulatory authority between state and federal governments and the extent to which local jurisdictions can independently regulate gambling activities.
The next steps involve awaiting the court’s decision on the decree’s constitutionality. This decision will likely influence the future regulatory approach to electronic betting in Rio de Janeiro and possibly across Brazil. Operators and regulatory bodies must prepare for potential changes that could redefine market access and compliance requirements in the Brazilian gambling sector.
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