Government Sues Betting Companies, Seeks $191 million in Damages and Reimbursement for Public Healthcare System

Brazil’s Attorney General’s Office filed a lawsuit against 17 betting companies seeking at least R$1 billion ($191 million) in damages for collective moral harm and reimbursement for expenses incurred by the Unified Health System (SUS) in treating people affected by gambling addiction. According to the agency, the betting companies caused "violations of values such as human dignity, the protection of the family and vulnerable people." The lawsuit also seeks double repayment of the amounts wagered by people with gambling addiction.

The AGU says the transfer to the healthcare sector required by law, equivalent to 0.12% of the industry’s revenue and totaling R$50 million in the last cycle, does not cover the costs. Preliminary studies by the Health Ministry estimate spending on treatment for betting addiction at R$2.6 billion ($496 million), an amount that would be determined during the judgment enforcement phase.

The lawsuit comes after President Lula (PT) announced on Friday (25) an executive order that ends online betting. On Monday (28), industry associations asked Supreme Court Justice Luiz Fux to suspend the measure, citing the risk of users migrating to illegal platforms. "The most effective measure is to keep them in a regulated and safe environment," they said in the filing.