Rio de Janeiro’s acting mayor, Eduardo Cavaliere, published a decree on Friday (22) that prohibits the installation of electronic gaming machines in the municipality. The measure also provides that licenses already granted may be revoked if establishments fail to comply with the rule.
The decision came a day after Mayor Eduardo Paes, on a business trip, stated that he would not authorize permits for locations installing this type of equipment. Therefore, the city’s announcement came shortly after Governor Cláudio Castro (PL) issued a decree authorizing the operation of these machines in various parts of the state of Rio de Janeiro.
In his justification, Cavaliere emphasized that the inclusion of lottery betting equipment in commercial establishments distorts the activity for which they were originally licensed, thus generating social, economic, and urban impacts. He further emphasized that it is the municipality’s responsibility to organize urban land use and monitor economic activities.
According to the acting mayor, allowing the proliferation of games in open-access locations, without adequate regulation, puts public health, urban safety, and the development of children and adolescents at risk.
Addressing the issue, Eduardo Paes described the state initiative as “quite concerning.” Paes stated: “Opening up gaming machines through a decree, without the support of legislators, without adequately debating the issue, is a misguided measure, to say the least.”
The mayor added: “I will personally seek out Governor Cláudio Castro next week to discuss this.”
State decree on VLTs
Governor Cláudio Castro’s decree authorized the installation of the machines in bars, themed venues such as sports bars, and other establishments. The software will be managed by Loterj (Rio de Janeiro State Lottery).
To operate, companies must obtain a license, pay a R$5 million grant, valid for five years, and transfer 5% of gross revenue to the State.
The model uses virtual tickets issued by the local authority and allows bettors to immediately find out if they’ve won a prize. Additionally, the terminals offer sports betting options, such as predicting who will score the first goal of a match or the number of cards issued throughout the game.
According to the newspaper O Globo, the president of Loterj, Hazenclever Lopes Cançado, stated that the initiative could create up to 65 thousand jobs and help boost tourism in the state.
“It’s not just a regulation. It’s the consolidation of the largest regulated light rail market in the world, a milestone that brings modernity, safety, and responsibility, as well as real opportunities,” he said.
The local authority will promote informational campaigns on responsible gambling. Furthermore, product advertising must comply with several regulations, with restrictions to avoid reaching vulnerable audiences.
