Brazil has filed a $54 million lawsuit against Betano, Stake, bet365 and 40 other bookmakers for misleading advertising

A new online betting scandal has erupted in Brazil: the state consumer protection authority of the state of Rio de Janeiro (DPRJ) has filed a class action lawsuit worth R$300 million (approximately $54 million) against 43 of the country's leading bookmakers. Among the defendants are all the most well-known operators: Betano, Stake, bet365, as well as Pixbet, Esportes da Sorte, MrJack, EstrelaBet, Betfair, KTO, Betnacional and many others.

The essence of the lawsuit: misleading advertising

The initiator of the lawsuit is the consumer protection division of the DPRJ (Nudecon), which believes that the advertising campaigns of betting companies systematically distort the idea of betting, turning it into an allegedly "intellectual investment" and a way to make a quick buck. Aggressive advertising with the participation of celebrities and football players is especially noted, where bets are presented as a fashion trend, and not a gambling game with risks.

The agency points out that operators are silent about the real consequences of betting, do not warn about addiction and debt traps, and wording like "Play responsibly" is too vague and does not inform about the essence of the risk. The lawsuit demands to ban such abstract disclaimers and oblige companies to post direct and strong warnings about possible addiction and financial losses.

Industry Scale and Bookmaker Requirements

According to official data, the volume of bets in Brazil reaches 30 billion reais per month ($5.4 billion). The claimed compensation is only 1% of the monthly turnover, but the main thing is not the amount, but the requirements for new advertising standards and player protection. DPRJ wants to direct all the recovered funds to a special fund for the support and treatment of gambling addiction.

The authorities have recorded a sharp increase in the number of complaints, primarily from low-income people who face chronic debts due to rates. This was the reason for such a harsh reaction.

Additional measures and new rules for operators

DPRJ demands not just financial compensation, but also a whole set of mandatory measures that should seriously change the approach to advertising and gameplay:

• Full-screen risk warnings of at least 10 seconds during gameplay;
• Visualization of all losses right in the session, so that the player can see how much he actually lost during the game;
• Blocking the account during repeated (especially night) gaming sessions to minimize the risks of binge drinking;
• Limits on the amount and duration of sessions to combat loss of control.

In addition, it is proposed to make it so that victims can individually file claims against operators for the damage caused, and for failure to comply with the new requirements, collect daily fines.

What is the point of the lawsuit and what to expect next?

Not only the reputation of large betting companies is at stake, but also the entire betting industry in the country. Brazil has only recently legalized online betting, and such a harsh response from the regulator could be a turning point for the market. If the lawsuit is satisfied, operators will have to radically revise advertising and strengthen responsible gambling measures.