The Federal Court of Accounts (TCU) in Brazil recently found that before the ban in January this year, over a quarter of the funds from the Bolsa Família program were spent on gambling, totaling 3.7 billion reais. This highlights the urgency of monitoring the use of these funds.
Research Data and Spending Ratios
TCU's analysis indicated that in January, gambling expenses of Bolsa Família beneficiaries accounted for 27% of the total disbursements, approximately 3.7 billion reais (about 685.6 million USD). The study, integrating data from the Ministry of Social Development, the Ministry of Finance, and the Central Bank, confirmed that the expenditure was "excessive" and reflected potential misuse of welfare funds for gambling activities.
Background and Legal Basis for the Ban
Since last year, there has been ongoing controversy in Brazil regarding welfare recipients betting. In November 2024, the Supreme Federal Court upheld emergency measures prohibiting betting with welfare benefits; in September 2025, the Secretariat of Prizes and Bets issued regulatory norms, completely banning Bolsa Família and Continuous Cash Benefit program recipients from participating in fixed-odds betting.
Implementation Measures and Compliance Requirements
The ban requires the establishment of a database for social welfare beneficiaries. Gambling operators must verify information during user registration and login, and cross-check CPF numbers through the Sigap system to identify welfare recipients. Checks are to be conducted every 15 days, and accounts found in violation will be blocked and refunded. Operators initially had a 30-day compliance period, which was later extended by another 30 days.
Social Controversy and Potential Impacts
Individuals like lawyer Luiz Felipe Maia believe the ban restricts civil rights, sparking debates over freedom of choice; the National Association of Games and Lotteries points out that the ban is excessive and could lead 45% of beneficiaries towards the black market. Opponents emphasize focusing on misuse of funds rather than a total ban, to prevent the growth of illegal markets.
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