Women make up about 83% of the 20.3 million Bolsa Família beneficiaries and are a minority among bettors, according to major studies analyzing the betting sector. A survey by Futura Inteligência found that they account for only 30% of gamblers. Furthermore, the amount of money invested on betting platforms is considered small within the online gambling ecosystem.
The ban was announced in an interview with Estadão by the Secretary of Prizes and Betting (SPA), Régis Dudena. The measure is the government’s solution to comply with the Supreme Federal Court (STF) ruling that prohibits the use of social assistance program funds for online betting.
Some in the market saw the announcement as a positive step for the entire betting sector. However, other groups argue that the decision is unconstitutional, as it restricts the free will of a social program beneficiary, even though the program itself does not impose limitations on how the funds can be spent.
Fernando Vieira, executive director of the Brazilian Institute for Responsible Gaming (IBJR), stated that the organization views betting as a form of entertainment rather than a source of income.
“We understand that money spent on online betting should never replace basic resources needed for people’s necessities—that is the purpose of social programs such as Bolsa Família and the BPC (Continuous Cash Benefit),” he said.
“The IBJR believes that this measure will provide greater protection for vulnerable bettors, contributing to the creation of a sustainable and responsible betting ecosystem.”
The IBJR represents some of the leading legalized betting companies. When approached for comment on the government’s decision, the National Association of Gaming and Lotteries (ANJL), another organization that advocates for the industry’s interests, stated that it “supports all government initiatives aimed at establishing rules that encourage responsible gaming.”
Betting regulation specialist Gustavo Biglia believes that the government’s approach could be deemed unconstitutional.
“The government provides the funds but does not dictate how the beneficiary should use them. If it did, it would also have to restrict spending on alcohol, cigarettes, and lottery tickets. Banning just one activity and labeling it harmful unfairly stigmatizes betting companies, which are a form of entertainment,” said Biglia, a partner at Ambiel Advogados.
Fabiano Jantalia, president of the Gaming and Betting Law Commission of the Federal District chapter of the Brazilian Bar Association, does not see the government’s decision as unconstitutional since it is based on compliance with the STF’s ruling. He also notes that the amount of money lower-income individuals spend on betting is relatively insignificant in the overall gambling market but warns of a potential unintended consequence of the measure.
“Any restriction specifically targeting Bolsa Família recipients, besides having minimal impact on the betting market, is likely to have a very harmful effect. These individuals may end up being pushed toward the informal, unregulated market, which would leave them extremely vulnerable—especially from a consumer rights perspective,” said Jantalia, a partner at Jantalia Advogados.
Jesualdo Eduardo de Almeida Junior, a professor of Civil and Consumer Law, considers the government’s initiative to be “constitutionally compatible and rational from a social protection standpoint.”
“These benefits are intended to ensure the basic subsistence of families, which justifies the government imposing conditions on their use, in strict accordance with the principle of human dignity. This is not an arbitrary restriction but rather a regulatory safeguard in the face of economic vulnerability,” he stated.
Behind the scenes, business executives and lawyers linked to betting companies privately argue that the Finance Ministry’s decision is mainly a political move by the government. While the ban affects 20 million recipients of Brazil’s largest social program, it has little impact on the total money circulating in the betting sector. On average, each Bolsa Família beneficiary receives R$668 (US$118).
Privately, industry insiders complain that the government has not imposed similar restrictions on social program funds being used for informal gambling (such as jogo do bicho) or alcohol purchases. Moreover, when considering the entire household composition of Bolsa Família beneficiaries, the program actually supports 53.8 million people, including children, teenagers, and adults of both genders.
Official program records designate only one individual per household as the primary recipient of the benefit, usually a woman. The other 33 million family members are not prohibited from betting.
Source: Estadão
