In an interview with the newspaper O Estado de S. Paulo, Stefanutto stated that he would request data from the monetary authority on how much of the BPC funds ended up in betting platforms, though this has not yet been done. However, behind-the-scenes evaluations suggest it will be difficult to conduct this analysis due to banking secrecy protecting financial transactions. Following the "Pix crisis," a Provisional Measure (MP) was issued to strengthen this constitutional protection.
The BPC (Continuous Cash Benefit) is a social assistance benefit equivalent to one minimum wage (currently R$1,518), paid by the INSS to low-income individuals with disabilities and elderly people, aimed specifically at reducing poverty.
Speaking to O Globo, the president of the INSS said the idea is being studied internally to assess whether beneficiaries transferring funds to betting platforms is a problem, but it has not yet been presented to the government. The INSS would ask the Central Bank (BC) to verify the amount of the benefit being transferred to betting platforms on a CPF (individual taxpayer registry) basis, but without identifying the individuals.
"People have every right to gamble, including with other benefits, such as retirement, which they have contributed to receiving. However, the BPC is different. It is paid by society, through the Social Security budget, with a specific purpose. So, creating this layer for responsible management is important," Stefanutto commented.
He mentioned that they are first evaluating whether it is legally and technically feasible to block the use of the benefit for gambling. Spending on sports betting is already prohibited for INSS beneficiaries who advance up to R$150 of their retirement or monthly benefits without interest. According to Stefanutto, banks that handle these advances are able to block payments to betting platforms.
Recently, the Attorney General’s Office (AGU) informed Supreme Court Justice Luiz Fux that there are technical difficulties in preventing gambling with money from social programs, such as identifying which resources in beneficiaries' accounts come from benefits and which come from other income sources. Fux had previously ordered the government to take measures to prohibit the use of social program funds for gambling.
Last year, the Central Bank (BC) released a technical note with preliminary estimates of spending on betting through Pix transactions. According to the study, 5 million people belonging to families receiving Bolsa Família benefits sent R$3 billion (US$ 495m) to betting companies using the Pix platform.
At the time, the BC conducted the analysis to understand whether part of the increase in household income was being "leaked" to betting platforms instead of being used for consumption or investment. Any information, even preliminary, could help the monetary authority understand inflation behavior. The document eventually became public and caused significant uproar.
Through the Access to Information Law (LAI), the monetary authority stated that it has a Cooperation Agreement with the Ministry of Social Assistance, responsible for the Bolsa Família program, for financial citizenship actions, such as studies, development, and implementation of initiatives and public policies.
When contacted, the Ministry of Finance stated it would not comment.
Source: O Globo
