Brazil's Attorney General's Office (AGU) has initiated a significant lawsuit in the Federal Court of Pernambuco against 17 betting companies, seeking compensation totaling BRL2.6 billion ($444.3 million) for damages inflicted on the nation's Public Health System (SUS). In the lawsuit, the government is asking for BRL1 billion specifically for moral and collective damages, citing that the Northeast region has the highest number of vulnerable individuals engaged in high-risk gambling.
The AGU's statement underscores a crucial point: the companies profit immensely from millions of bettors while shifting the burden of public health costs onto the SUS and society. "The defendant companies privatise significant profits derived from the financial collection from millions of bettors, while transferring the budgetary cost resulting from collective illness to the SUS and to society as a whole," the lawsuit reads.
The government's argument highlights that the current compensation mandated for these betting companies falls far short of covering healthcare expenses, as only 0.12% of their revenue allocations reach the Ministry of Health. The AGU demands that the 17 accused betting platforms collectively pay at least BRL1 billion to address the losses attributable to their operations. Research indicates that these firms account for about 80% of the Brazilian betting market.
The companies named in the suit include:
– Kaizen Gaming Brasil Ltda. (Betano)
– HS do Brasil Ltda. (Bet365)
– SPRBT Interactive Brasil Ltda. (Superbet)
– Ventmear Brazil SA (Sportingbet)
– Esportes Gaming Brasil Ltda. (Esportes da Sorte and Onabet)
– Foggo Entertainment Ltda. (Blaze)
– NSX Brazil (Betnacional)
– EB Intermediações e Jogos S/A (Estrelabet)
– Ana Gaming Brasil SA (7K and Casino)
– OIG Gaming Brazil Ltda. (7Games and Betão)
– BPX Bets Sports Group Ltda. (Vaidebet)
– H2 Licensed Ltda. (H2 Bet)
– Pixbet Soluções Tecnológicas Ltda. (Pixbet)
– NVBT Gaming Ltda. (Novibet)
– SevenX Gaming S/A (Bullsbet)
– NSX Betfair Brasil SA (Betfair)
– Apollo Operations Ltda. (KTO)
The AGU asserts that a portion of the costs for SUS services should be borne by these companies, although the exact amount to be calculated is not defined in the lawsuit. This claim is applicable to losses incurred over the five years leading up to the filing and will continue as long as the damages persist. The AGU estimates that total reimbursements could reach approximately BRL2.6 billion.
This legal action comes on the heels of President Luiz Inácio Lula da Silva's announcement last Friday instituting a ban on the Brazilian betting industry. Starting October 6, all licensed betting sites will face blockage throughout the country. In response, the National Association of Games and Lotteries alongside the Brazilian Institute of Responsible Gaming has submitted a statement to the Supreme Court, urging the reversal of this ban.
