Home Gambling RegulationsBrazil Takes Legal Action Against Betting Operators for R$1 Billion

Brazil Takes Legal Action Against Betting Operators for R$1 Billion

by Sienna Marques
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Brazil Takes Legal Action Against Betting Operators for R$1 Billion

The Brazilian federal government has initiated legal proceedings against 17 licensed betting operators, seeking approximately R$1 billion (around $190 million) in collective moral damages. A federal judge has granted the government a 30-day period to clarify the lawsuit and detail how these operators have contributed to health-related costs.

The lawsuit identifies a total of 20 brands involved in the betting sector, which includes prominent names such as Betano, Bet365, Superbet, Sportingbet, Esportes da Sorte, and Onabet, alongside other operators like Blaze, Betnacional, Estrelabet, 7K and Cassino, 7Games, Betão, Vaidebet, H2 Bet, Pixbet, Novibet, Bullsbet, Betfair, and KTO. Each of these companies holds authorization from Brazil's Ministry of Finance.

In addition to the R$1 billion demand for collective moral damages, the Attorney General's Office (AGU) seeks repayment to Brazil's healthcare system, SUS, for the treatment costs associated with gambling-related health issues over the last five years and potentially for future expenses. The precise financial amount involved will be established in a subsequent liquidation phase of the case.

The AGU aims to have the court invalidate bets placed by individuals diagnosed with gambling disorders, compel a double restitution of their related expenditures, and render unenforceable any contractual clauses that limit reimbursement.

The legal action arises from strict liability principles contained within the Civil Code and the Consumer Protection Code (CPC), which stipulate that business entities engaged in high-risk activities are responsible for any damages resulting from those activities. The AGU underscores that, according to health statistics, about 28 million Brazilians actively participate in online betting, with around 10.9 million dealing with gambling-related issues.

Judge Helio Silvio Ourem Campos has instructed the AGU to provide detailed information about the health conditions included in the lawsuit, the methods used to identify affected patients, and the data sources, administrative records, and systems employed to validate the associated costs.

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