The Brazilian Las Vegas: How realistic are Rio's ambitions?

- Rio advances “Las Vegas plan” with regulation of video lottery terminals (VLTs) - Loterj President Hazenclever Lopes Cançado links gaming to tourism, jobs and social programs - Federal lottery tax revenue shifts toward healthcare, adding pressure on regulated operators The Government of Rio de Janeiro has put forward its boldest wager yet: turning the state into Brazil’s answer to Las Vegas. At the centre of this push is the regulation of video lottery terminals (VLTs), a move that Hazenclever Lopes Cançado, President of Loterj, Rio’s state lottery, described as a “singular moment” for the state. The plan goes far beyond the installation of machines. Loterj envisions themed venues that combine gaming with gastronomy, live entertainment and technology, a model designed to boost tourism and extend visitor stays. Among the first initiatives are sport bars, which merge betting terminals with live sports broadcasts and local nightlife. “We’re creating experiences that go beyond entertainment,” said Cançado. But comparisons with Las Vegas are, at this stage, ambitious. Rio will have to think beyond betting terminals and sports bars if it is to truly combine gambling and tourism to boost numbers en masse. One of the defining features of Rio’s regulatory framework is its insistence on exclusive use of Pix, Brazil’s instant payment system, for all VLT transactions. The aim is transparency and traceability: no cash, no cards, just digital payments that can be audited in real time. “The operation of the VLTs will be 100% via Pix, ensuring transparency, security and control,” Cançado has stated. For regulators, that reduces the risk of fraud and money laundering, and for players it promises faster payouts and greater confidence in the system. This, however, may present the first hurdle in attracting a wider group of gamblers. The branding of the initiative as a “Brazilian Las Vegas” has obvious appeal. With iconic properties such as the Copacabana Palace and Hotel Nacional (pictured below, left to right) mentioned as potential venues, the ambition is crystal clear: anchor gaming as a pillar of Rio’s tourist economy. The state projects up to 65,000 new jobs, boosted tax revenue and the chance to showcase Rio as a modern, regulated hub for international visitors. Yet critics, including local authorities in Rio’s capital, have raised concerns over the speed of implementation and the potential overlap with unregulated markets. Mayor Eduardo Paes has already blocked licences for some operators, warning that a “casino by the back door” is not the same as clear legislation on gaming. For Cançado, the defense is straightforward: regulated markets protect consumers, create jobs and channel money into social projects instead of criminal networks. So... could Rio really become the Brazilian Las Vegas? The question is: is Rio's ambition is achievable or simply political theatre? For one, the state lacks nationwide backing. Brazil’s Congress is still debating a bill to legalise casinos, bingo halls and other forms of land-based gaming. Without harmonisation, Rio risks being seen as an outlier rather than a model. Besides, current attitudes from municipal leaders shows that, even within the state, not all stakeholders are convinced. If key cities block permits, the “Las Vegas effect” could be diluted. And yet the fundamentals give the project a real foundation and international suppliers are already on board, signaling external confidence. A Brazilian Las Vegas is not impossible. But it will depend on whether Rio can prove that regulation is watertight, politics are aligned and social commitments are fulfilled. The success of Rio’s plan will depend not just on regulation but on perception as its state-level approach is being watched closely across the country. Cançado reiterated his conviction that gaming, when properly supervised, can be a “powerful tool for transformation.” He also stressed that this is not simply about numbers, but rather building a sustainable model that integrates innovation, tourism and social benefit. Whether Rio can live up to its touted Las Vegas moniker remains to be seen. But for now, Loterj rolls the dice, opponents roll their eyes… and the chips are officially in play.