The Paraíba State Lottery (Lotep), the gambling regulatory body in the northeastern state of Brazil, has launched an orientation campaign aimed at residents and businesses following the detection of slot machines operating irregularly in the region. The initiative seeks both to ensure the legality of the sector and to protect consumers from devices that imitate authorized equipment without any official backing.
Only four companies are authorized to operate in Paraíba
The first message that Lotep seeks to clearly establish is which are the only actors authorized to operate this type of equipment in the state. Currently, only four companies have official authorization: Embralote Paraíba Serviços de Loteria SPE Ltda (Embralote), Kenosoft Video Loteria Ltda (Kenosoft), 3F Eventos Ltda, which operates under the brand Philipeia Diversões Eletrônicas, and Realeza da Sorte PB Atividade de Intermediação e Agenciamento de Serviços e Negócios Ltda (Realeza da Sorte).
Any machine not linked to one of these four companies must be considered irregular, regardless of the physical documentation it displays.
Devices that imitate the legal to operate outside of it
As explained by the regulator itself, the illegal equipment detected in Paraíba is not easily identifiable at first glance because it is designed to look like authorized video lottery machines. Lotep described these devices as terminals that “imitate video lottery machines, but lack accreditation and authorization from the state agency.”
One of the elements that the body pointed out as an indicator of irregularity is the presence of certificates physically attached to the machines as supposed proof of legality. Lotep clarified that authorized operators do not use this mechanism: certification is carried out exclusively through the body’s official channels and through linkage with duly accredited companies.
Legal risks for merchants hosting these devices in Brazil
Abraão Araújo, technical and inspection manager of Lotep, was direct in his warning about the consequences of allowing the installation of this type of device in commercial premises.
“These irregular terminals constitute fraud. They deceive both the business owner and the customer, who believes they are participating in a legalized game. Furthermore, those who allow the installation of these devices can be held administratively and even criminally liable. Therefore, it is essential to always verify if the company is authorized by Lotep,” the official warned.
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The precision is relevant: responsibility does not fall solely on the person who installs the equipment, but also on the owner of the premises that hosts it, which significantly expands the universe of people exposed to legal consequences.
How to identify an irregular proposal: the warning signs
Given the progress of these operations, Lotep released a series of concrete recommendations for merchants who receive proposals for the installation of lottery terminals. The first step is always to verify if the company offering the equipment is among the four authorized by the body.
Beyond that verification, the regulator identified two additional warning signs. If the equipment does not clearly display the logo, company data, and corresponding documentation, distrust is justified. And if the proposal promises easy benefits without official backing, the risk of irregularity is high.
A campaign that aims to protect all market players
Lotep’s initiative is not only aimed at final consumers, but also at merchants who could become involuntary accomplices in an illegal operation due to ignorance. In this sense, the information campaign has a dual purpose: to reduce the demand for unauthorized equipment by raising the level of alert among those who might host them, and to reinforce trust in the regulated system by making it clear which companies operate within the legal framework.
The context is significant. Brazil is going through a process of regulatory consolidation in the gambling sector that is advancing in parallel in different states and modalities, and the presence of illegal equipment that imitates authorized products represents a direct threat both to the integrity of the market and to the public perception of the formal industry.
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