VLTs Now Prohibited in Rio de Janeiro
The municipality of Rio de Janeiro has moved to prohibit the operation of Video Lottery Terminals (VLTs) within its boundaries. Acting mayor Eduardo Cavaliere issued a decree on Friday, August 22, that bans electronic gaming machines in the city and allows for the revocation of licenses if establishments are found to be in non-compliance.
LISTEN TO THIS ARTICLE:The decision was made while Mayor Eduardo Paes was away on an official trip. It followed his earlier declaration that he would deny permits to businesses intending to install gambling devices.
Related: Brazilian Senator Demands End to Regulated Sports BettingThe local measure comes in direct response to a decree from Governor Cláudio Castro that legalized and regulated VLTs across the state of Rio de Janeiro. Decree No. 49,804 sets out requirements for operating VLTs and similar betting devices, creating two categories of establishments authorized to host them.
The first category, VLT/Sports Bar shops, refers to dedicated lottery-themed spaces permitted to offer VLTs and betting terminals. The second category allows non-exclusive establishments, such as restaurants and other businesses, to install gaming equipment as a secondary service alongside their main activities.
By issuing the municipal ban, Cavaliere sought to counter the state-level authorization on the grounds of preserving urban integrity and safeguarding public interests. He stated that the installation of lottery betting machines in ordinary commercial settings fundamentally alters the nature of those businesses, generating adverse social, economic, and urban impacts.
According to him, the introduction of such equipment in places accessible to the public risks creating harm beyond the scope of commercial entertainment.
More Regulation News
Regulation
Big Lagoon Rancheria Joins Tribes Opposing California’s Anti-Sweepstakes Bill
Aug 26, 2025
Acting in Accordance with Legal Doctrine
The acting mayor emphasized that the municipality has a legal duty to regulate land use and economic activity in order to maintain balanced urban development. Cavaliere argued that the proliferation of gambling opportunities in public-facing establishments without proper municipal oversight threatens public health, security, and the protection of minors. He framed the ban as an exercise of the city's authority to ensure that economic activity is conducted in a way that does not compromise community welfare.
Mayor Eduardo Paes, prior to traveling, had made clear his dissatisfaction with the governor's initiative. He criticized the decision to permit gaming machines throughout the state by decree, highlighting the lack of legislative involvement and public debate on the issue.
In his view, introducing such a change without broader political and societal discussion was a misguided step that required immediate municipal intervention. Paes also announced his intention to personally meet with Gov. Castro to raise his concerns and seek a more measured approach.
The conflicting positions between the state government and the Rio de Janeiro city administration underline a broader debate about gambling regulation in Brazil. While the state decree attempts to expand access to regulated betting as a means of generating revenue and formalizing the sector, the municipal government has pushed back, citing the social costs and risks associated with widespread machine-based gaming.
The prohibition introduced by Cavaliere ensures that, at least within Rio de Janeiro's city limits, VLTs and similar devices will not be permitted despite the broader state framework.
The situation places operators and businesses in a position of legal divergence, as state law allows the use of VLTs while the municipal decree prevents them locally. The city's stance reflects an effort to assert its autonomy in regulating urban activities, particularly those with potential implications for social well-being.
RELATED TOPICS: Regulation
Latest News
Responsible Gambling
DraftKings Uses Sweepstakes to Promote Responsible Betting Ahead of NFL Season
Aug 27, 2025
Regulation
Review this New Post
Leave a Comment
User Comments
Comments for VLTs Now Prohibited in Rio de Janeiro