Brazil: Paraná raises $11 million with rollout of legalized video lottery machines

The government of Paraná has authorized the operation of 2,500 Video Lottery Terminals (VLTs), generating R$60 million ($11 million) in concession fees from licensing alone. The machines, which allow unlimited play time, are installed both in exclusive gaming shops and in bars and restaurants across the state. 

According to Lottopar, Paraná’s state lottery authority, the revenue is earmarked for public safety and housing projects. In the capital, Curitiba, five Lottopar-owned units are already open to the public.

Neighboring Rio de Janeiro has adopted a similar measure. A decree issued last week authorized the installation of electronic betting machines in bars and commercial establishments across the state. Like Paraná, the system operates with real-time monitoring, and all payments are processed exclusively through Pix, Brazil’s instant payment platform.

In Paraná, the sector is expanding rapidly. Apostou, a company active in the state’s betting market, announced plans to launch 80 new betting shops before the end of the year. Regulations require customers to present identification at the entrance.

Operators are also offering amenities designed to increase customer retention. Weekly promotions include colonial-style breakfasts on Wednesdays, pizza on Fridays, soups on Thursdays, and hot chocolate on weekends. Alcohol sales remain limited, with only one beer brand available and a small 300 ml draft priced at R$5 ($0.90).

Lottopar has stated that VLTs differ from traditional slot machines, noting that they are regulated, tested by international laboratories, and operate with electronic ticket databases to ensure transparency. 

“However, there are legal restrictions: sales are prohibited in pharmacies, and under Lottopar regulations, games cannot be offered within 100 meters of schools. Concessionaires must prevent access to machines by individuals under 18. Lottopar’s management platform and payment system block Pix payments made by minors,” the agency said in a statement.

Despite these safeguards, specialists have raised concerns about the potential for gambling addiction, given the visual similarity between VLTs and slot machines and the fast-paced rewards on offer. Addressing these issues, the authority pointed to the prevalence of gambling in Brazil, both through Caixa Econômica Federal’s regulated products and through illegal games.

“Lottopar acts to ensure people see betting as safe entertainment, migrating them from the illegal market to a regulated and supervised environment,” the statement added.

The Paraná Public Ministry has not yet opened investigations into either Lottopar or the newly introduced video lottery machines. The office noted, however, that it could intervene if consumer protection concerns emerge, including through formal requests for information or probes into possible irregularities.