Rio Prosecutors Challenge VLT Betting Decree

The Public Prosecutor’s Office of Rio de Janeiro (MPRJ) has filed a legal action before the Court of Justice of Rio de Janeiro (TJ-RJ), seeking to declare State Decree No. 49.804/25 unconstitutional. The decree authorizes electronic betting through devices installed in commercial establishments across the state.

The case was initiated under former Attorney General Antonio José Campos Moreira. Prosecutors argue that the decree improperly allows the use of electronic betting terminals, including video lottery terminals (VLTs), betting kiosks and smart POS systems, in locations such as bars, stores and other businesses offering fixed-odds betting services.

According to the MPRJ, the state government introduced a gambling model that goes beyond what is permitted under Brazil’s federal gambling legislation.

Prosecutors challenge legal basis

The Public Prosecutor’s Office argues that Brazilian law only permits fixed-odds betting under specific regulatory conditions and within authorized environments.

Prosecutors claim the state exceeded its authority by permitting wagering through physical electronic terminals in commercial venues across Rio de Janeiro.

As part of the action, the MPRJ requested the suspension of the decree while also asking the court to formally recognize the regulation as unconstitutional.

Municipal opposition to VLT expansion

The issue of VLT regulation had already generated resistance within Rio de Janeiro’s municipal administration before the legal challenge was filed.

In September 2025, the Municipal Secretariat of Public Order (Seop) revoked an operating permit granted to To All Games Operações Lotéricas, which planned to install betting terminals at the Tribuna A area of the Jockey Club Brasileiro in the Gávea Hippodrome.

The permit application had been submitted before Mayor Eduardo Paes publicly opposed the installation of betting terminals within the municipality.

Shortly afterward, acting mayor Eduardo Cavaliere removed betting kiosks and gambling devices from the list of activities eligible for municipal licensing.

State decree included operational requirements

The state regulation introduced a series of conditions intended to distinguish VLT operations from traditional slot machines.

Under the decree, all transactions conducted through betting terminals would need to be processed via Pix payments, while users would be required to provide CPF identification numbers or passport details in the case of foreign visitors. Cash payments would not be allowed.

Authorities argued these measures would separate VLT operations from conventional slot gaming and align them with legal betting activity.

Despite the decree, VLT operations have not yet launched due to ongoing certification procedures intended to verify the technical distinction between VLTs and traditional gambling machines.