Brazil has to move forward with lawsuit against 17 betting operators as the AGU has not yet complied with the order of the judge of the 6th Federal Court of Pernambuco to amend the application.
The judge instructed Brazil to substantiate how gambling firms allegedly caused public health expenditures.
The Attorney General’s Office announced its lawsuit on the 28th of September 2026, demanding at least €146 million (R$1 billion) as collective damages. Brazil also claims compensation for its costs incurred by gambling in the last five years and in the future.
Brazil’s government also demanded double payment for the stakes made by gambling addicts.
The judge requested the AGU to clarify in what way each of the 17 companies allegedly contributed to the expenses of the public health system. The amended application must define the health issues related to gambling. The judge also asked how the AGU came up with the data about damages.
Brazil’s provisional measure prohibiting online betting is different from the lawsuit which came into force on September 25, 2026.
The AGU estimates the financial losses to the healthcare system at around €380 million (more than R$2.6 billion) while the amount of money to be paid in collective moral damages is fixed at a minimum of €146 million (more than R$1 billion). The damages will be accounted for the five years prior to the lawsuit and will continue for as long as the damages are recognized.
The companies involved in the lawsuit represent about 80% of the betting market in Brazil.
At the same time, Congress needs to pass a law to turn the provisional measure into legislation, otherwise, it will cease to take effect.