Home Gambling RegulationsBrazil Pursues R$1 Billion Lawsuit Against Betting Operators

Brazil Pursues R$1 Billion Lawsuit Against Betting Operators

by Sienna Marques
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Brazil Pursues R$1 Billion Lawsuit Against Betting Operators

The Brazilian federal government has initiated legal action against 17 licensed betting operators, seeking R$1 billion (approximately $190 million) in collective moral damages. A federal judge has mandated that the government clarify its lawsuit within 30 days, detailing how these operators have contributed to health-related expenses.

The legal action targets 20 brands, which include Betano, Bet365, Superbet, Sportingbet, Esportes da Sorte, and Onabet, among others. Each of these companies possesses authorization from Brazil's Ministry of Finance to operate.

Apart from the R$1 billion claim for moral damages, the Attorney General's Office (AGU) aims for the companies to reimburse Brazil’s Unified Health System (SUS) for the medical treatment of gambling-related conditions over the past five years and potentially beyond. The precise sum to be claimed will be established in a later phase of liquidation.

Additionally, the AGU is pushing for the court to annul bets placed by individuals diagnosed with gambling disorders, to enforce double compensation for their expenses, and to invalidate any contractual clauses that limit refunds.

This legal challenge is grounded in strict liability principles outlined in Brazil's Civil Code and the Consumer Protection Code. The AGU asserts that businesses engaged in high-risk sectors like gambling are responsible for any resultant damages. Citing health data, the AGU highlighted that about 28 million Brazilians are engaged in online betting, with approximately 10.9 million suffering from gambling issues.

Judge Helio Silvio Ourem Campos has directed the AGU to detail the health conditions involved in their claims, identify how patients are recognized, and provide the data sources, administrative records, and systems used to ascertain the related costs.

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