Brazil government sues 17 operators for $193 million

The Brazil betting ban moved into the courts on Monday from both sides. The government sued 17 operators over the cost of gambling addiction, while the industry asked the Supreme Court to suspend the ban.

The Attorney General’s Office (AGU), the government’s lawyers, filed a civil action in the federal court in Pernambuco on 28 September. It seeks R$1 billion (about US$193 million) in collective moral damages, Poder360 and Correio Braziliense reported.

The 17 companies run 20 brands with about 80 percent of the market, the petition says. The AGU says market share defined who was sued and is not proof of liability.

According to the AGU, about 28 million Brazilians bet in the past year and 10.9 million show risky or problem gambling. Dollar figures use 5.19 reais per US dollar on 29 September.

On 28 September two industry groups, ANJL and IBJR, asked Justice Luiz Fux to suspend the measure. Fux already handles the Supreme Court cases on betting rules.

They argue the government showed no real urgency, CNN Brasil and Jovem Pan reported. Operators paid R$30 million (about US$5.8 million) each for five-year licences, the ANJL says.

A third group, Anseja, filed its own constitutional challenge the same day, Correio Braziliense reported. It asks for a transition of at least 180 days if the ban stands.

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