Following President’s Lula controversial ban on online betting, Brazil’s Attorney General’s Office (AGU) has filed a lawsuit in the Federal Court of Pernambuco against 17 betting companies, seeking compensation for damages to Brazil’s Public Health System (SUS). The government blames the betting industry for driving up mental health costs and transferring the collective financial burden of gambling-related illnesses onto society.
Seeking Damages and Public Health Reimbursement
The estimated value of the health system damages stands at BRL2.6 billion ($444.3 million), while the government is additionally requesting BRL1 billion from the platforms for moral and collective damages. The lawsuit was filed in Pernambuco due to the Northeast region’s high concentration of socioeconomically vulnerable individuals participating in high-risk gambling.
According to the AGU:
“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 notes that mandatory revenue allocations are insufficient, with only 0.12% going to the Ministry of Health. The companies named in the proceedings represent approximately 80% of the market.
List of Defendant Companies and Brands
The lawsuit targets 17 major operators operating within the country:
- 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)
Broader Regulatory Upheaval
This legal action arrives during a turbulent week for the Brazilian gambling sector, following President Luiz Inácio Lula da Silva’s announcement of a national betting ban. Effective October 6, all licensed sites are set to be blocked in Brazil. In response, trade groups including the National Association of Games and Lotteries and the Brazilian Institute of Responsible Gaming have petitioned the Supreme Court to overturn the ban.
