Hazenclever Lopes Cançado, president of the Rio de Janeiro State Lottery, called for a coordinated enforcement effort involving states and federal agencies to target illegal betting operations and related financial crimes in Brazil.
“We need to unite the states and federal agencies, such as the Federal Revenue Service, the Federal Police, COAF (Council for Financial Activities Control), and the Central Bank, to create a force to combat illegal betting houses,” he stated.
Cançado said the scale of the underground market has made it a channel for broader criminal activity. “The tens of thousands of illegal houses operating in Brazil are the gateway for drug trafficking, militias, money laundering, and various other crimes,” he stated.
His remarks were made during an interview with EsferaCast, Esfera Brasil’s videocast. A report by Folha de S.Paulo highlighted Cançado’s comments, including his push for a joint crackdown on illegal operators.
In the same interview, Cançado described how Loterj implemented a regulatory model for betting in Rio de Janeiro, arguing it addressed a federal legislative vacuum in electronic betting. Loterj established mechanisms for betting companies to pay taxes and introduced measures aimed at preventing money laundering and tax crimes within the sector.
“Our model is a modern model, an updated model. We engage with all the mature markets in the world and have brought to Rio de Janeiro the best that exists, with legal security for the bettor, for the state, and for the betting houses,” Cançado stated.
He said the initiative was driven by the need to move a largely informal industry into legality. Loterj offered regularization opportunities to operators that had previously worked without a license, followed by inspections to ensure compliance with the rules.
Cançado said the shift has supported greater financial flows into the state economy through gambling and has spillover effects for tourism, bars and restaurants, technology providers, and other businesses connected to betting operations.
He also pointed to changes in how proceeds are used. In three years of management, Loterj has multiplied its investment in social programs by 46, directing resources toward children, daycare centers, programs to combat violence against women, and grassroots sports, especially soccer in Rio de Janeiro.
“Our great differentiator, besides security, is the return to society of what is collected in a transparent and democratic way, leaving in Rio de Janeiro the result collected by the State from the bets made by the people of Rio de Janeiro,” he declared.
On operations, Loterj implemented the “Pix no Lote” system for all bets and prize payments, using facial recognition and proof-of-life verification. Cançado said the next step will be video lotteries in the state, forecast to generate about 65 direct and indirect jobs over the next two years.
Cançado reiterated support for legalizing casinos, bingo halls, and gambling in the National Congress. “We need to bring into the light all the games that continue to operate in obscurity and clandestinity,” he said, adding he expects congressional approval for the legalization of casinos, bingo halls, and other games of chance in Brazil.
Original article: https://www.yogonet.com/international/news/2026/01/08/117044-rio-de-janeiro-state-lottery-head-calls-for-joint-crackdown-on-illegal-betting
