Brazil Blocks Betting Access for Social Welfare Recipients

In a significant move to address the growing concerns over gambling-related harm, Brazil has introduced new regulations that prohibit recipients of social welfare programs from participating in fixed-odds betting. This decision marks a pivotal step in the country's efforts to regulate its rapidly expanding gambling sector and protect its most vulnerable citizens.

In October 2025, the Secretariat of Prizes and Betting (SPA), under Brazil's Ministry of Finance, implemented a regulation that blocks individuals benefiting from social welfare programs, such as Bolsa Família and the Continuous Cash Benefit (BPC), from accessing betting platforms.

This action follows a directive from Brazil's Supreme Federal Court, which had earlier ordered the government to ensure that public assistance funds are not diverted into gambling activities.

The newly introduced regulations are comprehensive. They require gambling operators to cross-reference player registrations with an updated database of PBF and BPC beneficiaries using the Government’s Betting Management System (Sigap) and the players’ CPF tax numbers. If a match is found, the operator must block or close the account and return any deposited funds to the individual.

The government's decision comes in response to alarming reports indicating that a significant portion of social welfare funds was being redirected towards online gambling. In August 2024, the Central Bank revealed that approximately five million Bolsa Família beneficiaries had transferred R$3 billion via Pix to online betting operators within a single month. This misuse of funds prompted the Supreme Federal Court to intervene, emphasizing the need to protect public assistance money from being spent on gambling.

This regulatory move is part of Brazil's broader efforts to bring more structure and accountability to its gambling industry. The country legalized fixed-odds betting in 2018, but the sector expanded rapidly without clearly defined rules, leading to the emergence of unregulated platforms and challenges in monitoring financial transactions.

The new regulations aim to curb these issues by ensuring that only eligible individuals participate in gambling activities. By restricting access for social welfare recipients, the government hopes to mitigate the risk of gambling addiction and its associated harms, such as financial distress and social instability.

The gambling industry has expressed concerns about the implementation of these regulations. Operators are now required to integrate government database checks at sign-up and login stages, which may necessitate significant adjustments to their existing systems. Additionally, the mandate to close accounts linked to social program recipients within three days could lead to operational challenges and potential customer dissatisfaction.

As Brazil continues to refine its gambling regulations, the focus remains on balancing industry growth with the protection of vulnerable populations. The government's proactive approach signals a commitment to responsible gambling practices and the safeguarding of public welfare funds.

Brazil's decision to prohibit social welfare recipients from participating in fixed-odds betting represents a significant step towards regulating the gambling sector and protecting its citizens from the potential harms associated with gambling. As the country moves forward, the effectiveness of these regulations will be closely monitored, with the hope that they will serve as a model for other nations grappling with similar issues.