The Secretariat of Prizes and Bets (SPA) in Brazil has officially implemented a ban prohibiting individuals receiving social welfare benefits, such as those from the Bolsa Família program, from participating in betting activities.
In November of the previous year, Brazil’s Supreme Federal Court upheld an emergency measure that restricted the use of social welfare funds for gambling. This initial ruling laid the groundwork for more stringent regulations. By April, SPA chief Regis Dudena confirmed that a comprehensive ban was imminent, though legal assessments were necessary before such an ordinance could be introduced.
On a recent Wednesday, SPA announced the enactment of Normative Ordinance No 2,217/2025 and Normative Instruction No 22. These regulations extend beyond merely preventing the use of social welfare funds for betting; they prohibit beneficiaries from engaging in fixed-odds betting entirely. Dudena emphasized the intention behind this move, asserting that it was essential to ensure Brazilians do not gamble beyond their means. He remarked, “To uphold the Supreme Court’s decision, we needed a technical tool that not only enforced the ban but also protected individuals’ rights and data.”
Despite challenges in enforcing the initial ban solely on the use of social welfare funds, the new regulations aim for a more comprehensive approach. It was highlighted by the National Secretariat of Citizen Income (Senarc) that only a small fraction, approximately 1%, of Bolsa Família beneficiaries use a physical card. The majority, about 99%, rely on online banking, which also accommodates wages and other payments, complicating the enforcement of the initial ban.
The mechanism for enforcing the ban involves a database containing details of social welfare beneficiaries. Betting operators are required to cross-reference their customer databases with this information during registration and login processes. Moreover, they must utilize the Sigap system, Brazil’s betting management platform, to verify if a user is a social welfare beneficiary. This verification must occur every 15 days for all registered users. If a user is identified as a beneficiary, operators must block their accounts and refund any deposits.
The regulations became effective immediately with the publication of Normative Ordinance No 2,217/2025. Operators are given a 30-day window to enforce these measures. The ordinance amends previous regulations on responsible gambling set forth by Normative Ordinance No 1,231 in July 2024.
Before account closure, operators must notify affected users via email, messaging apps, or SMS. Users are allowed to withdraw their funds within one day of notification, followed by a two-day withdrawal period. Unclaimed funds after 180 days will be redirected to the Student Financing Fund and the National Fund for Public Calamities, Protection, and Civil Defence.
If a user’s CPF number is removed from Sigap’s Prohibited Persons Module, they regain eligibility to participate in betting. However, operators are forbidden from targeting these users with advertising or notifying them directly about their reinstated status.
Operators not complying with these regulations face penalties, including potential license suspensions or terminations, and fines ranging from 0.1% to 20% of their annual proceeds, capped at BRL2 billion.
The ban has sparked debate across Brazil. The National Association of Games and Lotteries (ANJL) expressed concerns, arguing that the complete prohibition contradicts the Supreme Court’s initial directive, which only prevented the use of social welfare funds, not all forms of gambling.
Luiz Felipe Maia, a founding partner of the law firm Maia Yoshiyasu Advogados, pointed out potential civil rights implications, suggesting that the blanket ban restricts financial autonomy. “By saying beneficiaries cannot decide how to spend their money, we’re limiting their freedom,” he commented, emphasizing the difference between providing specific-use stamps and unrestricted cash assistance.
Ed Birkin, managing director at H2 Gambling Capital, acknowledged the ban’s intentions but warned that it might drive beneficiaries toward the black market. “Some might argue that individuals should choose how to spend their benefits. However, the reality is, without robust enforcement, they may simply turn to illegal operators.”
Conversely, the Brazilian Institute of Responsible Gaming (IBJR) supports the ban, viewing it as a protective measure for vulnerable populations. They believe it aligns with broader efforts to promote responsible gaming practices in the country.
In summary, while the ban aims to protect social welfare recipients from potential financial harm caused by gambling, it also raises questions about personal freedom and the effectiveness of prohibition in curbing undesirable gambling behaviors. The ongoing debate highlights the complexities of balancing regulation, personal choice, and social responsibility.
Topics: Payments · Executive Appointments · Brazil · Illegal Gambling · Licensing · Responsible Gambling
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