Brazil is advancing with its lawsuit against 17 betting operators, as the Attorney General's Office (AGU) has yet to fulfill the directive issued by the judge of the 6th Federal Court of Pernambuco to amend the legal application. The judge mandated Brazil to provide evidence supporting claims that these gambling firms have led to increased public health expenditures.
On September 28, 2026, the AGU announced its lawsuit, seeking at least €146 million (approximately R$1 billion) in collective damages. Additionally, Brazil is pursuing compensation for healthcare costs it has incurred due to gambling over the past five years and for anticipated future expenses.
The government's claim includes a request for double the amount spent on the stakes made by gambling addicts. The judge has required the AGU to detail how each of the 17 companies contributed to the financial strain on the public health system, as well as to define the health issues related to gambling. Furthermore, the AGU must justify the data that underpins its damage calculations.
Notably, Brazil's provisional measure banning online betting is separate from the lawsuit, which went into effect on September 25, 2026. According to the AGU, the financial losses associated with the healthcare system amount to approximately €380 million (over R$2.6 billion), while the collective moral damages sought are set at a minimum of €146 million (more than R$1 billion). These damages will cover the period preceding the lawsuit and will persist for as long as the damages are acknowledged.
The 17 companies involved in this legal action represent around 80% of Brazil's betting market. Concurrently, Congress is tasked with passing legislation to formalize the provisional measure; without this action, the measure will not remain in effect.
