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Brazil Court orders government to prove link between betting firms and millionaire health losses

A Brazilian federal court has given the government 30 days to clarify how 17 authorized fixed-odds betting operators allegedly contributed to losses incurred by the Unified Health System, or SUS, in a lawsuit seeking reimbursement and at least R$ 1 billion ($190 million) in collective moral damages.

Judge Helio Silvio Ourem Campos of the 6th Federal Court of Pernambuco ordered the Attorney General’s Office, or AGU, to amend its initial petition and explain “objectively” the alleged link between the operators’ activities and public health costs.

The case, No. 0074433-17.2026.4.05.8300, was filed on September 28. The ruling was signed the following day.

The defendants are Betano, Bet365, Superbet, Sportingbet, Esportes da Sorte and Onabet, Blaze, Betnacional, Estrelabet, 7K and Cassino, 7Games and Betão, Vaidebet, H2 Bet, Pixbet, Novibet, Bullsbet, Betfair and KTO.

The AGU is seeking reimbursement for SUS expenses linked to gambling-related injuries over the past five years and future costs. It also wants double restitution of amounts wagered by people diagnosed with gambling addiction. The request for an injunction has not yet been reviewed.

Campos said the petition provides the general basis for the claims but requires further detail “for a better delimitation of the object of the claim” and for the proper formation of the adversarial process.

The government must identify which health conditions are covered, how they will be established, and which public expenditures it wants reimbursed, including whether the claim covers only direct federal spending or also transfers to states and municipalities.

It must also specify the data sources, administrative databases, budget lines or systems used to calculate costs, explain how the Population Attributable Fraction will be applied using epidemiological and temporal parameters, establish objective criteria for assigning responsibility to individual operators under the market share theory, and define the exact period covered, including possible future damages.

The AGU has cited preliminary Ministry of Health studies estimating at least R$ 2.6 billion ($500 million) in losses to SUS. The amendment will require it to explain how those figures were calculated. BNLData has previously questioned the methodology behind estimates of betting-related losses, including those in an IEPS study.

Campos separately ordered the government to correct references to “diseases attributable to cigarettes” and clarify whether they were a clerical error. The wording suggests elements of the case were based on a model previously used against the tobacco industry. The AGU sued cigarette manufacturers in 2019 seeking reimbursement of SUS costs.

After the amended petition is filed, the case will return to the judge for further decisions, including on the injunction request.

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