Brazilian Court Denies Suspension of Betnacional Operations
A Brazilian court has denied a request to suspend the operations of NSX Group, the owner of the Betnacional betting platform. This decision is considered a potentially significant development for the betting industry in Brazil.
The ruling allows NSX Group to continue operating in Brazil after a judge rejected a request to halt its activities. The judge determined that the company had not violated regulations concerning underage gambling.
The legal challenge was brought against Betnacional and its owner by Educação e Cidadania dos Afrodescendentes e Carentes (Educafro) and Centro de Defesa dos Direitos Humanos Padre Ezequiel Ramin.
The lawsuit sought the suspension of activities for NSX Group and its brands, Betnacional, Jack Bet, and Pagbet, along with collective moral damages of R$ 500 million (approximately $88.3 million USD).
The plaintiffs argued that the group, recently acquired by Flutter, was not adequately protecting children and adolescents from gambling.
Initially, the Public Prosecutor’s Office granted a preliminary injunction suspending the sites’ operations until the company could prove it had implemented technological measures to prevent minors from accessing the platforms.
However, the Court of Justice of the Federal District and Territories overturned this decision, stating that the company had only received authorization to operate in the newly regulated Brazilian online market after meeting licensing requirements, including the use of facial recognition technology.
The court stated, “Considering that it was proven in the records that the defendant obtained authorization 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.”
“Therefore, I understand that there is no just cause to grant the requested injunction.”
Lack of Concrete Evidence Against Betnacional
According to legal expert Udo Seckelmann, the judge decided against suspending NSX Group’s operations due to a lack of sufficient evidence, particularly given that Betnacional is licensed and regulated by the Secretariat of Prizes and Betting (SPA).
“The judge decided that there was no concrete evidence that Betnacional had targeted minors or violated current regulations regarding the protection of children and adolescents,” Seckelmann stated.
“The decision emphasized that punitive measures, such as the suspension of operations, require clear and demonstrable violations, which were not substantiated in this case.”
Seckelmann believes the decision against suspending Betnacional will be “highly significant” for the Brazilian betting industry, highlighting the importance of licensing for operators and maintaining compliance.
“It suggests that the courts should uphold the legality of operations for companies that are properly licensed and adhere to current rules, especially those relating to the protection of minors,” Seckelmann continued.
“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.”
NSX Group Still Faces Challenges
As this is only a preliminary decision, the case remains ongoing. The court has requested that the plaintiffs provide further information, including factual evidence of the ineffectiveness of NSX Group’s biometric technology.
With more information, the case will be referred back to the Public Prosecutor’s Office.
Seckelmann suggests that new and stronger evidence could still sway the case in favor of the plaintiffs.
“In addition, changes in the regulatory environment, such as stricter implementation guidelines or legislative updates, could influence future judicial interpretations.”
“For now, however, the company remains authorized to operate, pending further developments in the legal process.”
NSX Group Acquired by Flutter
It was recently announced that NSX Group CEO, João Studart, would lead Flutter Brasil after the international giant completed its acquisition of Betnacional’s parent company.
The deal, valued at US$356 million (R$ 2 billion), includes NSX’s brands as well as Flutter’s operations in Brazil.
Studart shared his enthusiasm for the future of the new Flutter Brasil operations, stating: “Today, we begin a new stage in our journey.”
“It is the recognition of work that began as a Brazilian startup and that, with strategic vision, talent, and consistency, has established itself as a reference in the betting and digital entertainment sector, with leading brands such as Betnacional.”
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