Brazil Demands $54M from 43 Betting Companies for Misleading Advertising
The Public Defender’s Office of the State of Rio de Janeiro has filed a civil lawsuit against 43 iGaming operators, accusing them of concealing the risks associated with gambling.
Why the Lawsuit Was Filed
According to the agency, the betting companies failed to clearly disclose the risks of gambling addiction and potential financial loss. Simply including the phrase “play responsibly” in advertising is considered ineffective, as it shifts the burden onto users without properly informing them of the consequences.
Main allegations:
- Lack of clear risk warnings;
- Use of celebrities and athletes to portray betting as a smart financial move;
- Insufficient transparency in advertising campaigns.
Claim Amount
The Public Defender is seeking collective compensation of R$300 million (approx. $54 million). According to the agency, this amount represents about 1% of the country’s total monthly betting volume, which reaches R$30 billion ($5.4 billion), based on data from the Central Bank of Brazil.
Companies Named in the Lawsuit
The lawsuit targets 43 companies, including some of the biggest names in Brazil’s online sports betting market:
| Category | Example Companies |
|---|---|
| Major Operators | Betano, bet365, Pixbet |
| Local Platforms | EstrelaBet, Esportes da Sorte, MrJack.bet |
| Other Mentioned Brands | Stake, Betfair, KTO, Sportingbet, Superbet, F12.bet, Betnacional, Novibet |
What the Public Defender Demands
Beyond financial compensation, the office is calling for several regulatory measures:
- Ban on the use of the phrase “play responsibly” as a standalone disclaimer;
- Mandatory warnings about gambling addiction and financial risks;
- Limits on betting amounts and platform usage time;
- Alerts triggered by repeated nighttime betting activity;
- User dashboards showing personal betting history and patterns;
- Operator liability for individual harm caused to users.
Statements from Public Officials
Paulo Vinnicius Abrahão, Chief Public Defender:
People mistakenly view betting as an investment. It’s a game of chance. Public education is urgently needed.
Luciana Telles, Coordinator of Nudecon:
More and more people are falling into debt due to gambling. It’s time to protect consumer rights on a structural level.
Tatiane Campos, Deputy Coordinator of Nudecon:
Online betting especially harms the most vulnerable populations — classes C, D, and E — who hope to earn extra income but end up trapped in debt.
Support for Affected Individuals
The Public Defender’s Office offers free assistance to individuals struggling with debt, including gambling-related issues. Support can be accessed via the “Defensoria RJ” app or by calling 129.
Conclusion
The lawsuit filed against 43 online betting operators may set a precedent in combating manipulative advertising practices in the gambling industry.
The Public Defender’s Office is seeking not only monetary damages but also significant changes to consumer protection and advertising standards.