Brazil betting lawsuit targets 17 firms for at least R$1 billion

Brazil's federal government has sued 17 betting companies, seeking at least R$1 billion in collective moral damages and reimbursement for public health costs linked to gambling addiction. The Brazil betting lawsuit was filed in the Federal Court of Pernambuco and follows President Luiz Inácio Lula da Silva's executive order ending online betting.

The Attorney General's Office (AGU) says the operators named in the case account for about 80% of the country's fixed-odds betting market, as iGB reported. Licensed sites are due to be blocked from October 6.

What the government is asking for

The AGU is asking for at least R$1 billion, about $191 million, in collective moral damages from the companies. It also wants the court to order them to reimburse the Unified Health System (SUS) for treating gambling-related conditions.

That second amount is not fixed in the filing. The AGU has asked for it to be calculated during the proceedings and puts the estimate at around R$2.6 billion. The claim would cover the five years before the lawsuit and continue for as long as the court recognises damages. Casino News Daily reported that the government is additionally seeking double repayment of amounts wagered by people diagnosed with gambling disorder.

In the lawsuit, the AGU says: "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 two outlets give different dollar equivalents for the R$2.6 billion estimate, $496 million in Casino News Daily's report and $444.3 million in iGB's.

The 17 companies in the case

The 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), Pixbet Soluções Tecnológicas and Apollo Operations (KTO). iGB's report lists the full set, which also includes Estrelabet, 7K and Casino, 7Games and Betão, Vaidebet, H2 Bet, Novibet, Bullsbet and Betfair.

The government filed in Pernambuco because the Northeast has the highest concentration of socioeconomically vulnerable people involved in high-risk gambling, it says.

Health costs the government says are not covered

Under current rules, 0.12% of betting operators' revenue goes to the Ministry of Health, with R$50 million transferred in the latest cycle. The government argues that is not enough to cover the treatment bill.

Its figures put 10.9 million of Brazil's 28 million current gamblers at high-risk or problem gambling patterns. Treatment for pathological and excessive gambling through the public health system rose 140% between January 2018 and December 2025, according to the government.

Industry challenge and the October 6 block

The National Association of Games and Lotteries and the Brazilian Institute for Responsible Gaming have asked the Supreme Court to suspend the executive order. They argue it affects legal certainty, freedom of enterprise, consumer protection and Brazil's federal system, and want an injunction while Congress considers the order or the court reviews it. If that fails, they have asked for authorised operators to be exempted, or for enforcement to be delayed by six months.

Their filing states that 85 authorised companies operate 186 brands in Brazil, and warns that a ban could push users towards illegal platforms. "The most effective measure is to keep them in a regulated and safe environment," they said.

Enforcement is already moving. A task force identified 506 websites suspected of offering unauthorised betting and seven social media advertisements that appeared after the measure was issued.

Under the government's stated timetable, licensed betting sites will be blocked in Brazil from October 6.