Loterj, the state lottery of Rio de Janeiro, plans to move forward with video lottery terminals (VLTs) and rejects calling them machines, even with online casino banned across the entire country.
In an exclusive interview with NEXT.io, Loterj’s president, Fabíola Esteves, stated that VLTs “are just equipment for the commercialization of lottery products” and rejected comparisons to casino games. “The appearance or technology of a piece of equipment, on its own, does not define the legal classification of the product being commercialized through that channel,” she said.
The choice of words is deliberate. Asked whether the VLTs are already in operation, she said:
“This is a matter that the market itself will work out, according to the business strategy of each licensed company. From a technical standpoint, we don’t work with the term ‘machine,’ since it links to the illegal game of slot machines. We speak of equipment, as it is a more complex control structure.”
“We don’t work with the term ‘machine,’ since it links to the illegal game of slot machines” – Loterj
In Rio, VLTs are regulated by State Decree 49.804/2025, which classifies them as instant lottery, a category not affected by the ban. Under the rules, players identify themselves through facial recognition, pay only via Pix from an account linked to their CPF, and the terminals, certified to international standards, remain connected to Loterj in real time.
The position carries weight at a time when Brazil is debating what, if anything, should return to the market. Most of the betting-friendly amendments presented to the MP in Congress would bring back sports betting, but would keep online casino banned.
The Provisional Measure (MP) 1.394, in effect since September 25, also extinguished the betting authorizations granted by states, which have been able to explore their own lotteries since a 2020 Supreme Federal Court (STF) ruling.
Loterj had been licensing sports betting operators since 2023, until the STF ordered the suspension of operators that did not limit their bets to the state of Rio de Janeiro. The fixed quota represented “a significant portion” of the agency’s revenue.
With the MP extended on November 11 and its fate likely to be decided in 2027, Fabíola also spoke about the situation of licensed companies, Loterj’s social programs, and the risk of bettors migrating to the illegal market.
NEXT: With the fixed quota banned, video lottery terminals, regulated by Decree 49.804/2025, remain authorized because they are classified as instant lottery. What is Loterj’s plan for this category, and how do you respond to criticism that VLTs resemble casino games, precisely when online casino is banned?
Fabíola Esteves: Video lottery terminals (VLTs) are just equipment for the commercialization of lottery products. In the state of Rio de Janeiro, they have their own legal framework, established by State Decree No. 49.804/2025, and the products are classified under the instant lottery category.
Each category has its own characteristics and rules, and its authorization must respect the limits set out in legislation.
Our plan is to move forward responsibly, ensuring that the equipment and operations meet strict requirements for security, certification, user identification, access control, and anti-money laundering prevention.
Regarding the criticism and comparisons to casino games, I understand that questions may arise, especially given the recent changes in legislation. But the appearance or technology of a piece of equipment, on its own, does not define the legal classification of the product being commercialized through that channel.
NEXT: You took over the presidency of Loterj in March 2026, six months before MP 1.394. What was Loterj like when you arrived, and how is it today, after the ban? What is your biggest challenge now?
FE: When I took over the presidency, I found an institution with an important public responsibility and a role that goes far beyond lottery activity. Since then, we have been working to strengthen governance, improve oversight, increase transparency, and make management increasingly efficient.
MP 1.394 brought a profound change to the sector. We have sought to face this scenario with serenity and respect for institutional decisions, seeking to preserve Loterj’s capacity to operate within legal limits and planning the structuring of new lottery products.
But, for me, the greatest challenge is not merely regulatory or administrative. It is preserving Loterj’s capacity to continue fulfilling its social function. Behind the resources generated by lottery activity there are projects, children, families, and people who depend on these initiatives.
NEXT: The MP prohibits fixed-odds betting, including that authorized by the states. What happened to the companies accredited by Loterj and the fees and licenses they paid? What share of revenue came from fixed-odds betting, and what happens to commitments to sports and social projects like Lar da Mulher?
FE: MP 1.394 required Loterj to act carefully and attentively in light of the new legal landscape. We have been taking the necessary measures regarding the accredited companies, always respecting the legal instruments, the obligations established, and the guidance of the competent authorities. The same rigor guides the handling of fees and licenses.
The fixed-odds betting segment represented a significant share of the agency’s revenue. But revenue collection is not an end in itself. Its value lies, above all, in what it allows us to accomplish. Loterj’s resources help maintain the Vila do João, Jardim Batan, and Cidade de Deus daycare centers, which take in children and support their families, as well as Lar da Mulher, which shelters women who are victims of violence and their children.
We are also working to expand this reach. We recently published a public call for proposals to select up to five Civil Society Organizations for the Social Subsidy Program, with up to R$2.5 million allocated to Digital Inclusion and Educational Support Rooms for adolescents aged 12 to 18 in situations of social vulnerability.
[The call for proposals, published in the State Official Gazette on November 11, provides for up to R$500,000 per project in five priority territories: Belford Roxo, Grande Campo Grande, Manguinhos, Santa Cruz, and São Gonçalo. The daycare centers are maintained in partnership with RioSolidario.]
NEXT: The MP was extended on November 11 and may be left for the new Congress in 2027, while the STF considers ruling on betting together with lotteries. What path does Loterj advocate: full reopening, releasing only sports betting, or a bigger role for the states? And how does the agency respond to proposals to reshape or dissolve it?
FE: The discussion about the future of betting in Brazil needs to be conducted with balance and dialogue. We are talking about a sector that requires clear rules, ongoing oversight, and above all, consumer protection.
It is also important to respect Brazil’s federative model and the states’ constitutional powers. State-level experience has much to contribute to this debate. In Loterj’s case, the resources generated help fund projects in the areas of social assistance, education, and sports, directly benefiting the population.
It is not up to the agency to anticipate decisions by the National Congress or the Supreme Federal Court. What we advocate for is a clear, secure, and responsible regulatory environment that respects the powers of each federative entity.
NEXT: In the United Kingdom, the national lottery operates under a single license and a national regulator, with betting licensed separately. What lessons does Loterj draw from its accreditation experience since 2023, including the court rulings that limited its operations to Rio, and what could the British example or that of other countries teach the state lottery model?
FE: The main lesson is that there is no efficient regulation without clear rules, effective oversight, and legal certainty. International experience, such as that of the United Kingdom, offers important references, but we need to consider Brazil’s particularities and, especially, our federative model.
Loterj respects court rulings and advocates for dialogue and cooperation among the federative entities. More than discussing models, we need to build a regulatory environment capable of protecting society, giving the sector legal certainty, and preserving the public purpose of lottery activity.
NEXT: What is Loterj’s assessment of the risk of bettors migrating to the illegal market after the ban? Which blocking and enforcement tools remain active?
FE: The migration of users to unauthorized platforms is, without a doubt, an issue that could escalate to an incalculable extent. When an activity leaves the regulated environment and moves into informality, the one who loses out is, above all, the consumer, who no longer has access to adequate mechanisms of protection, transparency, financial traceability, and oversight.
Regulating does not simply mean authorizing an operation. It means establishing rules, identifying who operates, monitoring transactions, overseeing compliance, and holding accountable those who fail to comply with the law. Without these tools, the State loses its capacity to exercise control and society becomes more exposed.
Loterj’s regulatory model provides for mechanisms such as user identification, financial transactions conducted exclusively via Pix, self-exclusion and responsible gaming tools, and anti-money laundering procedures, among others. The agency maintains its oversight activities within its legal powers, adopting the appropriate administrative measures whenever irregularities are identified.
NEXT: In September, Loterj decided to terminate its contract with a payments provider. What can be said about this decision and about who will process payments going forward?
FE: This decision was made following an administrative review, within Loterj’s powers and in compliance with legal procedures. Like any public body, Loterj has a responsibility to monitor its contracts, assess compliance with contractual clauses and the quality of the services provided, and adopt appropriate measures whenever it identifies reasons that justify a change.
Our priority is to ensure the continuity of these services with security, reliability, and transparency.
[In September, Loterj terminated its contract with RioPag, which held a monopoly on payment processing for companies accredited by the agency, citing a lack of transparency and obstacles to oversight. A court injunction from the Rio de Janeiro judiciary suspended the termination, and RioPag continues to operate the service.]
NEXT: You lead a regulatory agency in a sector that is still predominantly male. What does your presence as president mean for Loterj and for the market, and what would you say to other women who want to reach leadership positions in the sector?
FE: Women’s presence in leadership positions is an important achievement, but it is also an ongoing process that needs to keep advancing every day. Occupying these spaces means not only opening paths, but also contributing new perspectives, experiences, and ways of running institutions.
Taking on the presidency of Loterj is a great responsibility, which I try to carry out with technical preparation, dialogue, sensitivity, and commitment to the public interest. Competence and diversity go hand in hand, and institutions become stronger when different experiences and perspectives have a place in decision-making.
To women who wish to reach leadership positions, I would leave a message: invest in knowledge, trust in your own ability, and don’t give up in the face of obstacles. No woman should have to prove more than her competence to occupy a space.