A judge in Brazil has denied a request for the suspension of BetNacional and its parent company, NSX operations, in a $88.3 million lawsuit.
The Education and Citizenship of Afrodescendants and the Needy (Educafro) and the Father Ezequiel Ramin Centre for the Defence of Human Rights filed the lawsuit against NSX and its brands BetNacional, Mr Jack Bet, and Pagbet over allegations that the company has failed to stop underage gambling.
Flutter, the owner of FanDuel, agreed a $356 million deal to acquire 56% of NSX last week and will be relieved that the courts have found in the company’s favor.
Judge reverses public prosecutor’s decision
The Public Prosecutor’s Office initially granted the injunction to suspend the sites’ operations until proof was given that they are taking appropriate measures to ensure children are not gambling.
The Court of Justice of the Federal District and Territories went against that ruling, stating that the company obtained a valid license under Brazil’s newly imposed regulations. Brazil introduced sports betting regulations in January this year, and operators are now licensed and regulated by the Secretariat of Prizes and Bets (SPA).
BetNacional is licensed under the SPA, and the judge deemed this as sufficient proof that the company has implemented measures to ensure underage gamblers are not active on their sites.
The judge stated,“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 decision read.
“Therefore, I understand that there is no just cause for granting the preliminary injunction filed.”
Ruling “highly significant” for the Brazilian gambling industry
Udo Seckelmann, Head of Gambling & Crypto at Brazilian law firm Bichara e Motta Advogados, commented that he viewed the ruling as “highly significant” for the Brazilian gambling industry.
Seckelmann went on to add, “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,”
“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.”
Market regulation in Brazil has damaged crypto sportsbooks and offshore betting companies, which had previously operated in a gray area due to a lack of clear authority.
BetNacional integrated to Flutter Brazil
The ruling is good news for the newly created Flutter Brazil, which merges Betfair Brazil with BetNacional. NSX Group CEO João Studart will lead the new enterprise and views it as reward for the work NSX has done to establish itself as a major player in the country.
Commenting on LinkedIn, Studart wrote, “Today, we begin a new stage in our journey.
“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.”
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
