Brazil's Attorney General's Office (AGU) has initiated a lawsuit in the Federal Court of Pernambuco against 17 betting companies, demanding compensation related to damages inflicted on Brazil's Public Health System (SUS). The total damages sought amount to BRL2.6 billion ($444.3 million). Additionally, the government is pursuing BRL1 billion in collective moral damages, specifically against the betting platforms.
The choice of Pernambuco as the venue stems from the Northeast region's high number of socioeconomically vulnerable individuals engaged in high-risk gambling. The AGU noted in its filing, "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 current compensation mechanisms for betting firms fall short of addressing the healthcare system's expenses. It highlights that only 0.12% of the revenue from betting operators is allocated to the Ministry of Health.
For the moral damage claim, the government is calling for at least BRL1 billion from the 17 betting companies to cover losses incurred due to their operations. Notably, these named companies together account for around 80% of the market.
The lawsuit lists the following companies:
– 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)
According to the AGU, these companies should contribute to covering some expenses incurred by the SUS due to their operations. The lawsuit does not specify exact amounts but states that an assessment will occur later. The financial claim encompasses damages over the five years leading up to the lawsuit and will persist as long as the recognized damages continue. The AGU estimates the required reimbursement at approximately BRL2.6 billion.
This legal action coincides with President Luiz Inácio Lula da Silva's recent announcement, made on October 6, to ban all licensed betting sites in Brazil. In reaction to this decision, both the National Association of Games and Lotteries and the Brazilian Institute of Responsible Gaming have submitted a statement to the Supreme Court, seeking to overturn the ban.
