Brazil's Attorney General's Office (AGU) has initiated a lawsuit in the Federal Court of Pernambuco against 17 betting companies, claiming they owe BRL1 billion ($171.3 million) in moral damages. This suit aims to address perceived harm to Brazil's Public Health System (SUS), with the overall estimated damages totaling BRL2.6 billion ($444.3 million). The choice of Pernambuco as the venue reflects the region’s high concentration of vulnerable individuals who engage in high-risk gambling.
The AGU contends that these companies extract substantial profits from millions of bettors while imposing the financial burden of collective health issues on the SUS and society as a whole. The lawsuit states, “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 government argues that the funds required to support the healthcare system far exceed the current mandatory contributions from these operators, which only amount to 0.12% of their revenue going to the Ministry of Health.
In requesting BRL1 billion for collective moral damages, the government highlights that the implicated companies control approximately 80% of the betting market. A comprehensive list of those companies named in the lawsuit includes:
– 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 healthcare costs incurred by SUS should be borne by these companies, although the lawsuit does not specify exact amounts, leaving calculations for a later date. The lawsuit covers the five years leading up to the filing and will continue as long as the damages remain valid.
This legal action follows President Luiz Inácio Lula da Silva's recent announcement banning betting operations starting from October 6, a decision that has intensified challenges for the Brazilian betting sector. In response, both the National Association of Games and Lotteries and the Brazilian Institute of Responsible Gaming have filed a statement with the Supreme Court, aiming to challenge the ban.
