Stake, bet365 and 41 Other Betting Firms Face Lawsuit in Brazil
43 online betting companies operating in Brazil have been sued by the Rio de Janeiro Public Defender's Office over claims of deceptive marketing practices and inadequate warnings about the risks of online betting.
LISTEN TO THIS ARTICLE:According to the suit, the companies' use of "bet responsibly" disclaimers is insufficient, as it shifts the responsibility to consumers without providing meaningful warnings or protections. It noted that current marketing practices fail to disclose the serious health risks linked to betting, including compulsive gambling, anxiety, and financial hardship.
Now, the office is demanding R$300 million in collective moral damages as well as urgent implementation of safeguards, including full-screen or pop-up warnings that will last at least 10 seconds and feature clear messages like "betting is not an investment" and "betting may cause addiction."
The filing also calls for betting platforms to introduce safer gambling features like automated alerts for frequent high-stakes bets, self-exclusion tools, and a user dashboard displaying time spent betting, losses incurred, and available funds.
The suit derives its R$300m figure from Central Bank projections that monthly betting in Brazil reached around R$30 billion in 2024. If awarded, the damages would be channeled into a national fund dedicated to preventing addiction.
More Regulation News
Stricter Regulations for Gambling Advertising
The Public Defender's Office names major betting brands such as Betano, Sportingbet, Betfair, Bet365, KTO, Superbet, F12.bet, Betnacional, Novibet, Stake, Pixbet, and EstrelaBet as respondents. While the defendants may adopt some of the lawsuit's proposed measures, the chances of the lawsuit ending in a settlement are slim, as operators would likely challenge the claims and argue that they already provide sufficient protections for users in the newly regulated betting market.
Even without the suit, more drastic measures were already in the pipeline for gambling advertising in Brazil. Last month, the Senate approved new legislation introducing a range of restrictions on gambling advertisements. These include a ban on celebrity endorsements and betting advertisements during live sports broadcasts. Media advertising will also be limited to specific hours.
RELATED TOPICS: Regulation
Latest News
Business
Allwyn Sells Germany and Australia Casino Assets to Focus on iGaming, Sports Betting
Jul 22, 2025
Business
Review this New Post
Leave a Comment
User Comments
Comments for Stake, bet365 and 41 Other Betting Firms Face Lawsuit in Brazil