Poá municipality launches Brazil’s first VLF

Shirley Pulis Xerxen March 26, 2024

SiGMA news

Poá municipality launches Brazil’s first VLF

The São Paulo municipality of Poá yesterday made history by opening Brazil’s first video lottery facility (VLF) following a Supreme Court ruling. Operated by AMZ Loterias do Brasil, the establishment features 42 electronic terminals offering various instant lottery games.

In partnership with PlayAGS Brasil, the first lottery terminals operated by AMZ Loterias will have electronic instant lottery games with payout between 70% and 90% and an average frequency of 1 winning ticket for every 4.1 tickets sold.

AMZ installed an access terminal to its central system at City Hall, where all financial transactions of the activity can be monitored and audited in real time. All game plans, central system and operational electronic process were certified by BMM TestLabs.

Gaming laboratories like BMM Testlabs, and others, have seen an increase in requests for testing and certification of online systems and games, land-based product certifications for slot machines and systems, random number generator (RNG), cybersecurity services and ISS / ISMS audits. Gaming laboratories will have a very important role to play in other emerging markets in LatAM, Asia and Africa that are thinking about legalising and enacting stricter gaming laws.

Municipal challenge to federal authority

Poá’s initiative highlights the ongoing dispute between Brazil’s federal government and its states and municipalities regarding the regulation and operation of lottery activities, including sports betting and online gaming. While the federal government has faced setbacks in implementing a national licensing system, local entities have capitalised on regulatory gaps.

Legal ambiguity surrounding municipal lotteries

Legal experts have raised questions about whether municipalities possess the authority to establish lotteries or if this power is exclusively held by Brazil’s 26 states. The Ministry of Finance maintains that only states have the jurisdiction to introduce lotteries.

Poá’s launch of a video lottery facility signifies a broader trend among Brazilian municipalities challenging traditional notions of lottery regulation. As legal debates persist regarding the scope of municipal authority in lottery operations, the gaming and betting in Brazil continues to evolve, driven by federal and local interests.