Rio de Janeiro Sues Operators for Safer Gambling Violations

The Public Defender’s Office of the State of Rio de Janeiro has initiated a legal crackdown on operators that have violated the safer gaming rules. The violators in question had insufficient player protection measures in place and breached regulations related to preventing harm.

The Office Seeks $54M in Damages

The Public Defender’s Office’s legal action targets a total of 43 online sportsbooks that failed to shield consumers from harm and include obligatory safer gambling messages in their products and ads. The office therefore alleges that the companies should pay damages for the harm they have caused.

According to the Public Defender’s Office, the violations appear to be systematic in nature, which is one of its key reasons for initiating the lawsuit.

The defendants include both local betting powerhouses and international gambling companies. These include the likes of Bet365, Betano, Betfair, Esportes da Sorte, Estrela Bet, F12 Bet, Pixbet, Superbet, Stake, among others.

The Public Defender’s Office is seeking approximately $54 million in damages from the operators. According to it, this amount corresponds to 1% of the monthly handle per figures by the Central Bank of Brazil.

If the lawsuit is successful, the office will inject the money into a variety of problem gambling treatment and prevention programs.

The office also argues that Brazil should adopt a variety of safer gambling measures, such as limits on spending, cool-down periods for excessive users and better harm prevention. In addition to that, it believes that sports betting ads and sponsorships should be toned down as they could have a devastating effect on vulnerable individuals, lead to debt, and normalize gambling to children.

Lax Regulation Hurts the Most Vulnerable

Representatives of the Public Defender’s Office emphasized the importance of acting now in order to encourage good habits and prevent harm among Brazilians.

Paulo Vinícius Cozzolino Abrahão, chief public defender, postulated that many Brazilians wrongly see gambling as an investment due to a lack of proper regulation of gambling ads and promotions.

Sub-coordinator Tathiane Campos added that betting is statistically more dangerous to lower-income groups who can be swayed with promises of wealth and luxury.