The federal lawsuit also seeks reimbursement of SUS healthcare costs and double repayment of wagers placed by people diagnosed with gambling disorder
Brazil’s Office of the Attorney General has filed a civil public action against 17 online betting companies, seeking at least R$1 billion—approximately US$191 million—for alleged collective moral damages.
The Advocacia-Geral da União (AGU) is also demanding reimbursement of expenses incurred by Brazil’s Unified Health System, known as SUS, in preventing, diagnosing and treating gambling-related mental health conditions.
According to Folha de S.Paulo, the defendants operate 20 betting brands that collectively represent approximately 80% of Brazil’s regulated market.
The government alleges that the operators caused violations of fundamental values, including human dignity and the protection of families and vulnerable people.
Advocacia-Geral da União
“The betting companies caused violations of values such as human dignity and the protection of families and vulnerable people.”
The lawsuit also requests double reimbursement of amounts wagered by people diagnosed with gambling disorder.
Government estimates R$2.6 billion in healthcare costs
Under the rules applying during 2026, 12% of operators’ gross gaming revenue was allocated to designated public purposes. Of that amount, 1% was earmarked for healthcare programmes intended to prevent and mitigate gambling-related harm.
This meant that 0.12% of sector revenue was transferred to the Ministry of Health. The allocation reportedly generated approximately R$50 million, or US$9.5 million, during the latest cycle.
The AGU argues that this amount was insufficient to cover the public healthcare costs attributed to gambling-related harm.
Preliminary Ministry of Health studies estimate those expenses at R$2.6 billion, approximately US$497 million. The final amount would be calculated during the damages phase of the proceedings, based on factors including market share and the proportion of diagnoses attributed to gambling.
The government is seeking reimbursement for public expenditure over the previous five years, together with future payments for as long as the alleged harm continues.
The Ministry also estimates that SUS treatment linked to gambling disorders increased by 140% between 2018 and 2025.
A subsequent Folha report revealed that the filing contained a reference to “diseases attributable to cigarettes”, apparently retained from a lawsuit against the tobacco industry. The AGU acknowledged the material drafting error but said the tobacco litigation was being used as a legal precedent because both cases concern alleged public-health damage.
Industry challenges betting prohibition
The lawsuit was filed shortly after President Luiz Inácio Lula da Silva issued Provisional Measure 1,394/2026, prohibiting the operation, offering, intermediation and advertising of fixed-odds betting in Brazil.
The National Association of Games and Lotteries and the Brazilian Institute of Responsible Gaming have asked Supreme Federal Court Justice Luiz Fux to suspend the measure.
The organisations argue that closing the regulated market could drive consumers towards clandestine platforms that are not subject to national rules on taxation, supervision and player protection.
ANJL and IBJR
“The most effective measure is to keep them in a regulated and secure environment.”
