Rio de Janeiro Unveils “Las Vegas Plan” to Boost Gambling Sector

Rio de Janeiro’s government is betting on a bold new initiative that could reshape the city’s entertainment economy. Dubbed informally as the “Las Vegas Plan,” the project aims to transform Rio into a national hub for regulated gambling by dramatically expanding the number of video lottery terminals (VLTs) across the state.

Good to know

• The initiative targets up to 200,000 VLT machines at major venues such as Hotel Nacional and the Jockey Club.
• Supporters project the creation of 65,000 new jobs and stronger tax revenues.
• A separate bill in Brasília seeks to restrict betting ads linked to Government contracts.

The Vision for Rio

Governor Cláudio Castro signed the decree that allows the expansion, drawing authority from a Supreme Court ruling giving states the right to issue local licenses for “phygital” gambling operations. Under the framework, activity must remain restricted to the jurisdiction granting the license.

For Castro, the effort is about bringing structure to a market that already exists: “This regulation will bring security for bettors,” he noted, while pointing out that gambling is recognized worldwide as a formal economic activity.

Economic Case for Expansion

According to Loterj President Hazenclever Cançado, Rio currently collects only BRL 30 million ($5.6 million) in annual gambling revenue, which is modest for a state with a major tourism industry. By introducing 200,000 VLTs under regulated conditions, backers argue that revenue could climb sharply while creating as many as 65,000 jobs.

Cançado frames the proposal as a way to move activity from gray areas into a transparent system: legal operators, defined rules, and consistent oversight.

Mixed Reactions

Not everyone is convinced. Rio Mayor Eduardo Paes has opposed issuing municipal licenses under the plan. He contends that while the state has the legal basis, broader casino legislation would be needed to manage such a large-scale rollout. “If we are to build a Las Vegas, it must come with proper casino legislation,” Paes stressed.

The dispute also shows a larger tension in Brazil—whether gambling growth should be handled piecemeal through state initiatives or under unified federal rules.

Proponents believe the decree can act as a catalyst for regulated expansion, moving players away from unlicensed markets while fueling jobs and tax revenue. Critics, however, warn that without strict oversight, the initiative risks repeating mistakes seen in past attempts at gaming liberalization.

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