Brazil Blocks Online Betting for 900,000 Welfare Users
In a major regulatory move, Brazil’s federal government has blocked online gambling access for roughly 900,000 recipients of social welfare programs, including Bolsa Família and the Continuous Cash Benefit (BPC). The measure, effective since December 1, follows a Supreme Federal Court ruling and aims to prevent public assistance funds from being used for online wagering.
Legal Framework and Implementation
The block stems from a November 2024 STF decision, which determined that public welfare payments cannot be spent on online betting. Following this, the Secretariat of Prizes and Bets issued operational guidelines requiring licensed operators to verify users against official government records. Checks are applied at registration, login and transaction stages to ensure compliance.
Scale and Impact
Operators estimate the ban affects 8–15% of their revenue, with up to 30% of the broader player base linked in some way to welfare programs. Early reports indicate that nearly 900,000 attempts to access betting platforms were blocked in the first 12 days of enforcement.
Automated Blocking and Accuracy Concerns
The blocking process is fully automated, using monthly updates from government databases like CadÚnico, Bolsa Família, and BPC. Some operators have raised concerns about erroneous denials, as the system does not distinguish between current beneficiaries and those who have exited the programs.
Government Oversight
The Ministry of Social Development is responsible for updating beneficiary records and ensuring the appropriateness of blocked users. Officials emphasize that the measure protects vulnerable groups by ensuring welfare funds are used solely for subsistence purposes.
Regulatory Implications
This action reflects Brazil’s broader push to strengthen online betting oversight, prioritizing consumer protection and social responsibility. While operational challenges persist, including data accuracy issues, the policy signals the government’s commitment to aligning betting regulation with public welfare objectives.
