The case went to the Federal Court of Pernambuco, a region the government chose because it has the highest concentration of socioeconomically vulnerable people involved in high-risk gambling. The lawsuit names popular brands including Betano, bet365, Superbet, Sportingbet, Blaze, Betnacional, Pixbet, Novibet, Betfair, and KTO, which together make up around 80% of the Brazilian betting market. The government argues these companies should help cover rising costs to Brazil’s public health system, noting that only 0.12% of operator revenue currently goes toward Ministry of Health funding, a lot less than what the system actually spends treating gambling-related harm.
The AGU explained:
“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 exact damages amount hasn’t been set yet, with the AGU asking the court to calculate it later. The claim covers the five years before the lawsuit and would keep running as long as the harm continues. The case comes as President Lula signed a provisional measure banning licensed betting nationwide on September 25, 2026, with trade groups ANJL and IBJR now asking the Supreme Court to overturn the decision.
