The Brazilian Prize and Betting Secretariat (SPA) recently issued new regulations, completely prohibiting beneficiaries of social welfare such as Bolsa Família and continuous welfare benefits from participating in any form of gambling activities. According to the normative regulation No. 2,217/2025, operators must close the gambling accounts of welfare beneficiaries within 30 days and verify their identities through the national gambling management system Sigap. The ban has sparked controversy, with supporters arguing that it protects vulnerable groups, while opponents warn it may lead to an increase in black market gambling.
Background and Legal Basis of the Ban
The Brazilian Prize and Betting Secretariat (SPA) officially banned social welfare program beneficiaries from participating in gambling activities based on an emergency measure upheld by the Federal Supreme Court last November. The measure initially prohibited the use of social welfare income for gambling, and the new rules extend the ban to completely prohibit welfare beneficiaries from participating in any gambling activities.
SPA Chairman Regis Dudena confirmed in April this year that the ban was about to be implemented, but a legal assessment needed to be completed before the official decree was issued. The normative regulation and directive released on Wednesday provide a specific framework for the implementation of the ban.
Content and Implementation Requirements of the Ban
The new ban requires operators to close all gambling accounts of social welfare beneficiaries within 30 days. Operators must refer to the social welfare beneficiaries database and the Brazilian gambling management system Sigap, checking the individual taxpayer registration number (CPF) to identify restricted users.
The verification process must be performed at least every 15 days to ensure timely detection of new social welfare program participants. Once a user is confirmed as a welfare beneficiary, operators must immediately prevent their registration, close existing accounts, and refund the account balance.
Identity Verification and Technical Implementation
SPA has established a comprehensive database of social welfare beneficiaries, which operators must refer to during user registration and login. The system identifies restricted users by comparing the social welfare database and the gambling management system Sigap's individual taxpayer registration numbers.
Chairman Dudena emphasized: "To ensure compliance with the Supreme Court's ruling, it is necessary to develop robust technical tools and carefully ensure that the measure protects the rights involved. Protecting citizens, their safety, their rights, and their personal data is always the goal of the Brazilian government."
Account Closure and Fund Handling
Before closing accounts, operators must notify users via email, messaging apps, or SMS within one day after receiving confirmation from Sigap. After being notified, users have one day for voluntary withdrawal and an additional two days for mandatory withdrawal.
If the account funds are unclaimed within 180 days, these funds will be transferred to the Student Aid Fund and the National Public Disaster, Protection, and Civil Defense Fund. If a user's CPF number is removed from the prohibited list, they will regain betting eligibility, but operators should not proactively notify or market to these users.
Implementation Timeline and Compliance Requirements
Operators have 30 days to implement the ban, with an additional 45 days (from the date of the directive's issuance) to complete the first cross-check of the registered bettors list with the Sigap prohibited list. Operators who fail to comply with the ban will face severe penalties, including termination or suspension of licenses.
The amount of fines may reach from 0.1% to 20% of the operator's annual revenue, not exceeding 20 billion Brazilian reais. These punitive measures are intended to ensure comprehensive and effective enforcement of the ban.
Controversy and Differing Views
The ban has sparked controversy within Brazil. In October, the Indian National Gambling and Lottery Association (ANJL) notified SPA, opposing the complete prohibition of social welfare beneficiaries from betting, arguing that this contradicts the Supreme Court's initial ruling that only prohibited the use of welfare income for betting.
Luiz Felipe Maia, founding partner of Brazilian law firm Maia Yoshiyasu Advogados, stated that the ban might infringe on citizens' rights, limiting the freedom to decide how to use their funds. Ed Birkin, managing director of H2 Gambling Capital, warned that the ban could lead to an increase in black market gambling activities.
Supportive Opinions and Protection Concepts
The Brazilian Responsible Gambling Association (IBJR) supports the ban, considering it an important step in protecting vulnerable groups. Supporters believe that social welfare beneficiaries, being economically fragile, need special protection to avoid falling into gambling-related financial distress.
Chairman Dudena previously warned that the regulation prohibiting the use of social welfare income for gambling was difficult to implement effectively, as only 1% of Bolsa Família households use physical cards, while the remaining 99% receive funds through associated online bank accounts, making it difficult to distinguish the source of funds.
Potential Impact and Future Developments
Analysts point out that while the ban aims to protect vulnerable groups, it may have unintended consequences, including driving some players to unregulated black market platforms. This could expose players to greater risks, as illegal operators do not offer consumer protection measures.
The effectiveness and impact of the ban will be closely monitored, and SPA states that it will adjust the implementation details based on actual conditions. The Brazilian government emphasizes that protecting citizens' rights and preventing gambling harm are the core goals of this policy.
