Rio de Janeiro Initiates ‘Las Vegas Plan’ With 200,000 VLT Expansion

The state of Rio de Janeiro has announced an ambitious initiative, dubbed the “Las Vegas Plan,” aimed at expanding its gambling industry by significantly increasing the number of video lottery terminals across the region. 

The proposal seeks to install up to 200,000 VLT machines in key venues such as Hotel Nacional and the Jockey Club. The plan is supported by Governor Cláudio Castro and is projected to create around 65,000 new jobs while enhancing state tax revenues.

Key takeaways:

• Rio de Janeiro proposes to expand its gambling sector with up to 200,000 video lottery terminals
• The plan aims to create approximately 65,000 new jobs and increase tax revenues
• State efforts face political opposition and require federal legislative support

The initiative builds on a recent ruling by Brazil’s Supreme Court, which affirmed the authority of states to issue local licenses for “phygital” (physical and digital combined) gambling operations. This court decision provides a regulatory framework, under state jurisdiction, for the planned expansion.

Rio Pushes for Regulated Gambling Market

Governor Castro’s administration aims to transition the region’s mostly informal gambling sector into a regulated market. Hazenclever Cançado, president of the state lottery company Loterj, noted that current betting revenues in Rio approximate BRL 30 million annually, a relatively modest figure given the region’s significant tourism industry.

The Las Vegas Plan proposes new regulatory measures designed to increase transparency and consumer protections. These include mandatory transactions via Pix, a widely used Brazilian instant payment system, along with biometric authentication requirements for player access. Officials say these provisions will secure gambling operations, protect users and foster economic development by attracting more tourists.

Las Vegas Plan Faces Political Roadblocks

Despite the initiative’s economic rationale, it has faced opposition from municipal authorities. Eduardo Paes, the mayor of Rio de Janeiro, has expressed reservations, calling for comprehensive federal legislation to govern casino operations rather than relying on state-level licensing. 

This position reflects ongoing national discussions about the appropriate level of government oversight for Brazil’s gaming industry.

Meanwhile, Loterj continues collaborative efforts with technology suppliers to finalize the regulatory framework, focusing on operational compliance, player safeguards, and revenue management.

Governor Castro has emphasized the potential economic impact of the Las Vegas Plan, stating that the new regulation aims to provide “security for bettors” while aligning Rio de Janeiro’s gambling market with international standards.