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Brazil government suing betting companies for BRL1 billion in collective moral damages

Our write-up of a story first reported by iGaming Business

Brazil government suing betting companies for BRL1 billion in collective moral damages

Brazil's Attorney General's Office has filed suit in the federal court of Pernambuco state against 17 betting operators, demanding BRL 2.6bn ($444.3m) to cover public health costs and a further BRL 1bn in collective moral damages.

The suit was filed in Pernambuco because the northeast region has the highest concentration of vulnerable players at risk of gambling addiction. The AGU argues that operators capture profits from millions of bettors while offloading treatment costs onto the public health system and society. Mandatory contributions are insufficient — the health ministry receives just 0.12% of operator revenue.

Defendants include SPRBT Interactive Brasil (Superbet), Esportes Gaming Brasil (Esportes da Sorte and Onabet), EB Intermediações e Jogos (Estrelabet), OIG Gaming Brazil (7Games and Betão), and Pixbet Soluções Tecnológicas (Pixbet). Together they control roughly 80% of the market. The AGU has asked the court to calculate the final sum later; the claim covers five years prior to filing and will continue while the harm persists.

The suit increases pressure on the industry after president Luiz Inácio Lula da Silva announced a block on all licensed sites from 6 October. The National Association of Games and Lotteries and the Brazilian Institute of Responsible Gaming have petitioned the Supreme Court to overturn the ban.

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