The Brazilian Institute of Responsible Gaming (IBJR) has challenged the basis of a civil action brought by Brazil's Attorney General's Office (AGU) against licensed fixed-odds betting operators, arguing that the BR$1bn (US$192.7m) claim lacks elements needed to establish liability.
The IBJR said the case requires proof of the alleged damage, a causal link between that damage and operators' activities and an assessment of each operator's individual responsibility. Its statement represents the association's position and does not constitute a judicial finding.
The AGU filed the civil action against 17 companies in the Federal Court in Pernambuco, seeking at least BR$1bn in collective moral damages. The case also seeks reimbursement of costs incurred by Brazil's Unified Health System (SUS) in treating gambling-related harm.
The AGU has also requested double repayment in specified cases where operators allegedly continued to accept wagers after notice of a gambling-disorder diagnosis or ignored traceable risk indicators.
The dispute has also focused on references to the tobacco industry contained in the filing. IBJR argued that legal reasoning developed for tobacco cannot simply be transferred to fixed-odds betting because the activities operate under different legal and regulatory frameworks.
A judge in the 6th Federal Court of Pernambuco has separately given the Union 30 days to provide additional information about the action, including the health conditions and SUS expenses covered by its reimbursement request and the proposed method for calculating each operator's responsibility.
The court also sought clarification over a reference to diseases attributable to cigarettes and whether it resulted from a material error.
Brazil's federally regulated fixed-odds market had operated under authorizations issued pursuant to Law 14.790/2023 and Ministry of Finance rules from January 2025.
The regulatory position changed in September 2026 after Provisional Measure 1.394 prohibited the operation, offering and advertising of fixed-odds betting nationwide. Its transition barred new deposits from September 25, requires sites and apps to go offline by 6 October and ends existing authorizations after 30 days.
IBJR also pointed to related proceedings before the Federal Supreme Court concerning the constitutional framework for betting regulation, arguing that parallel litigation creates additional legal uncertainty.
In September 2026, the AGU was preparing a BR$1bn action against betting operators, preceding the filing of the case and IBJR's subsequent response.
The Ministry of Finance's authorization regime for fixed-odds betting took effect from 1 January 2025 under Laws 13.756/2018 and 14.790/2023
