Brazilian Judge Denies Injunction Against BetNacional in Underage Gambling Lawsuit

A Brazilian judge has rejected a request to suspend the operations of BetNacional and its parent company NSX, following a R$476 million (US$88.3 million) lawsuit filed over alleged failures to prevent underage gambling on their platforms.

The legal action was initiated by two prominent advocacy organizations—the Education and Citizenship of Afrodescendants and the Needy (Educafro) and the Father Ezequiel Ramin Centre for the Defence of Human Rights. The lawsuit named NSX Group and its affiliated brands BetNacional, Mr Jack Bet, and Pagbet, accusing them of negligence in preventing access to gambling platforms by minors.

The case drew significant attention, particularly after Flutter Entertainment, the global betting conglomerate and owner of FanDuel, announced a deal just last week to acquire a 56% stake in NSX for US$356 million. The decision to reject the injunction is expected to bring some relief to Flutter, whose recent acquisition now appears legally safeguarded.

Previously, the Public Prosecutor’s Office had approved an injunction ordering the suspension of the sites until NSX could provide adequate proof that it had implemented measures to block underage users. However, the Court of Justice of the Federal District and Territories overruled that decision, noting that NSX has acquired a valid operating license under Brazil’s newly established regulatory framework.

Brazil’s Secretariat of Prizes and Bets (SPA) began regulating the country’s sports betting sector earlier this year. BetNacional operates under a license issued by the SPA, which the court considered substantial evidence of regulatory compliance.

The judge emphasized this point in the ruling: “Considering that it was proven in the records that the defendant obtained the authorisation to operate for a period of five years, it is concluded that the security mechanism indicated by the plaintiffs themselves and required by the Ministry of Finance was duly implemented,” the court decision stated. “Therefore, I understand that there is no just cause for granting the preliminary injunction filed.”

Legal experts and stakeholders in Brazil’s gaming industry have hailed the ruling as a landmark moment. Udo Seckelmann, Head of Gambling & Crypto at Brazilian law firm Bichara e Motta Advogados, described the decision as “highly significant” for the regulated gambling landscape in Brazil.

“It suggests that courts are likely to uphold the legality of operations for companies that are properly licensed and adhere to the current rules, particularly those concerning the protection of minors,” Seckelmann said. “At the same time, it sends a strong message that the judiciary is attentive to the need for evidence-based claims when it comes to allegations of non-compliance, reinforcing a balanced approach between regulation and market stability.”

Brazil’s new regulatory framework has already had a major impact, especially on crypto-based sportsbooks and offshore gambling operators, many of which had functioned in a legal gray area prior to the SPA’s establishment.

The timing of the ruling benefits the newly formed Flutter Brazil entity, which merges Betfair Brazil with BetNacional. NSX Group CEO João Studart will lead the combined operation. Studart took to LinkedIn to share his thoughts on the court’s decision and the evolution of the company.

“Today, we begin a new stage in our journey,” he wrote. “It is the recognition of a work that began as a Brazilian startup and that, with strategic vision, talent and consistency, has consolidated itself as a reference in the betting and digital entertainment sector, with leading brands such as Betnacional.”

The ruling bolsters NSX’s position in Brazil’s fast-developing legal betting industry and affirms the value of adhering to the country’s emerging regulatory standards.

By fLEXI tEAM