The Brazilian Prize and Gaming Secretariat (SPA) announced a 30-day extension to the compliance period for prohibiting social welfare beneficiaries from participating in gambling. The ban was officially enacted through Regulatory Decree No. 2217/2025 and Regulatory Directive No. 22 at the end of September 2025, completely prohibiting beneficiaries of social welfare programs such as Bolsa Família from participating in fixed-odds betting. This move stems from a November 2024 Supreme Court ruling, but as the original 30-day implementation period was about to expire, SPA decided to extend it without specifying the reasons. Industry warnings suggest that the ban may drive beneficiaries towards the black market, with a survey by the National Gaming and Lottery Association showing that 45% of welfare recipients are considering turning to illegal channels.
Background and Decision to Extend the Ban
The Brazilian Prize and Gaming Secretariat (SPA) issued the ban on September 30, 2025, prohibiting social welfare beneficiaries from Bolsa Família and the Continuous Benefit Payment Program from participating in fixed-odds betting, requiring operators to close relevant accounts within 30 days. The ban is based on the November 2024 Supreme Court ruling that prohibited the use of welfare funds for gambling, but expanded the scope to completely prohibit participation in gambling. As the original deadline approached, SPA decided to extend the compliance period by 30 days, but did not publicly explain the reasons for the extension.
Industry Reaction and Potential Impact
Industry organizations such as the National Gaming and Lottery Association (ANJL) have expressed dissatisfaction with the ban, believing it exceeds the scope of the original Supreme Court ruling. A joint survey by ANJL and BNL Data shows that 45% of social welfare beneficiaries plan to turn to black market gambling after the ban takes effect. Ed Birkin, General Manager of H2 Gambling Capital, pointed out that unless there is a comprehensive restriction on the use of funds, the ban is unlikely to effectively prevent gambling behavior, and may instead promote the development of the illegal market. The industry generally believes that vulnerable groups will still participate in gambling through illegal channels, and the actual effectiveness of the ban is questionable.
Policy Controversy and Future Directions
SPA Chairman Regis Dudena emphasizes that the ban aims to prevent excessive betting by vulnerable groups, but the industry questions its feasibility. The focus of policy controversy is that the original Supreme Court ruling only prohibited gambling with welfare funds, while the new regulation completely prohibits participation in gambling, potentially overly restricting personal choice. Analysts believe that Brazil needs to balance social welfare security and gambling regulation to avoid fostering black market risks. Future focus points include the progress of operator compliance during the extension period and whether the government will adjust its execution strategy.
