Brazil betting ban: Industry prepares for compensation claims

Brazil's National Gaming and Lottery Association (ANJL) is preparing for possible compensation claims from members affected by the suspension of betting activities. While continuing efforts to reopen the market, the association is collecting evidence of the financial losses its members have suffered.

According to the association, preparations are underway for both a class action and individual claims. The situation and documented losses of each company will be taken into account. Possible claims include a proportional refund for the unused portion, along with investments that have not yet been recovered. Disconnection costs, lost profits and other documented financial losses are also being considered as grounds for compensation. Members have been asked to keep payment receipts, financial statements, contracts and investment records.

Provisional Measure No. 1,394 ended betting licenses on public interest grounds. Article 4 of the measure expressly excludes the refund of license fees and compensation from the government. Finance Minister Dario Durigan stated that the fees would not be refunded at the time the ban was announced on September 25. Operators had paid approximately 4.92 million euros for each license. The licenses were expected to remain valid until the end of 2029.

The association said it is carrying out its compensation work alongside efforts to preserve the licenses and restart operations. It was stated that the association expects progress at the Federal Supreme Court in November. This is not a court decision, only an expectation.