IBJR criticizes AGU for billion-dollar lawsuit against betting companies and speaks of "legal uncertainty"

The Brazilian Institute for Responsible Gaming (IBJR) stated that the billion-dollar lawsuit filed by the federal government against 17 betting operators "lacks essential elements" and deepens legal uncertainty in the sector. The organization, which represents electronic betting platforms in the country, released its position in a statement published this Thursday (October 1st).

The lawsuit was filed on Monday (September 28th) by the Attorney General's Office (AGU) in the Federal Court of Pernambuco, seeking R$ 1 billion in damages against the 17 betting companies. The IBJR's statement adds to criticisms from other entities in the sector, according to reports by Globo Online and Veja: the National Association of Games and Lotteries (ANJL) had already classified the government's decision to resort to the Judiciary as "contradictory," while the Brazilian Association of Radio and Television Broadcasters (ABERT) also requested, this Thursday (October 1st), the immediate suspension of the provisional measure that banned betting in the country.

According to IBJR, compensation of "this magnitude" would require "proof of the damage, demonstration of the causal link between this damage and the companies' activities, and the individualization of responsibilities." The organization emphasizes that these elements "were not demonstrated" by the Attorney General's Office in the lawsuit.

References to tobacco and institutional contradiction

The IBJR statement also registers “concern” about the fact that the legal document contains “several references to the tobacco industry, to the point that the court itself ordered its correction.” According to the institute, “a multi-billion dollar claim against a regulated sector cannot be built upon the adaptation of arguments formulated for a completely different activity, without considering the legal and regulatory particularities of the fixed-odds betting market.”

The institute also points out what it calls an "institutional contradiction" in the initiative: "the Union seeks to hold companies accountable that carry out a legal activity, authorized and regulated by the Federal Government itself." The entity recalls that the operators act under Law No. 14.790/2023 and the regulations of the Secretariat of Prizes and Bets of the Ministry of Finance, and argues that "any liabilities should be investigated individually, and not based on a generic imputation to the regulated sector."

Conflict with the Supreme Federal Court

Another criticism from IBJR points out that "the constitutionality and limits of the regulatory model for betting are already under discussion in the Supreme Federal Court and in related actions, under the rapporteurship of Minister Luiz Fux." Given this, the entity warns that "a generic public civil action, in the first instance and with a billion-dollar claim, could indirectly anticipate a discussion submitted to the Supreme Court, increasing legal uncertainty for the regulated market."

The statement concludes with a declaration of institutional commitment: “The Institute reaffirms its respect for the Judiciary and its confidence in the technical handling of constitutional actions. It also reiterates its commitment to Responsible Gaming, the protection of gamblers, and the integrity of the market. The IBJR supports evidence-based public health policies, not legal documents lacking empirical support.”