The Public Defender's Office in Rio de Janeiro has filed a class action lawsuit against 43 gambling companies, including Betano, Pixbet, and bet365, accusing them of misleading consumers in their advertisements and demanding compensation of 300 million Brazilian Reais (approximately 53 million US dollars) for emotional damages, and enforcing multiple protective measures.
The lawsuit alleges that these companies use slogans such as "responsible betting" to cover up the real risks of gambling, lacking adequate warnings about addiction, anxiety, and debt issues. The plaintiffs demand the platforms to set up alert systems, pop-up reminders, self-exclusion mechanisms, and full-screen warnings, especially to enhance behavior monitoring during high-risk periods such as late night.
If approved by the court, this compensation will be allocated to the National Addiction Prevention Fund. Additionally, failure to comply with the new regulations will result in daily fines.
The brands involved include Betano, Sportingbet, Betfair, Bet365, Stake, Pixbet, EstrelaBet, and other leading operators in the industry. According to data from the Central Bank of Brazil, Brazilians' monthly online gambling expenditure is expected to reach 30 billion Reais in 2024.
Meanwhile, several operators in São Paulo are organizing an industry alliance to address the escalating regulatory challenges.
