Brazil's Attorney General's Office has filed a lawsuit against 17 betting companies that together hold around 80% of the market. The AGU is seeking at least BRL1 billion in collective moral damages and estimates the cost to the national health system SUS at BRL2.6 billion. The case was filed in federal court in Pernambuco state.
The AGU argues that mental health issues linked to betting have placed additional strain on SUS. The BRL2.6 billion figure represents the estimated damage to the health system, though the court will determine the final compensation amount later. Compensation is meant to cover the five years before the lawsuit was filed and may continue for as long as the court decides. Separately, the government is demanding at least BRL1 billion for collective moral harm — a standalone claim, not part of the SUS reimbursement. According to the AGU, current operator contributions of 0.12% of revenue to the Ministry of Health fall short of covering the costs.
Defendants include Kaizen Gaming Brasil (Betano), HS do Brasil (Bet365), SPRBT Interactive Brasil (Superbet), Ventmear Brazil (Sportingbet), Esportes Gaming Brasil (Esportes da Sorte and Onabet), Foggo Entertainment (Blaze), NSX Brazil (Betnacional), as well as Estrelabet, 7K, Casino, 7Games, Betão, Vaidebet, H2 Bet, Pixbet, Novibet, Bullsbet, Betfair and KTO.
The lawsuit comes as President Luiz Inácio Lula da Silva ordered a ban on the industry. As of 6 October, all licensed betting sites in Brazil were to be blocked. The National Association of Games and Lotteries and the Brazilian Institute for Responsible Gaming have appealed to the Supreme Court to overturn the ban.
