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Brazil Bans Social Welfare Recipients from Gambling in New Regulatory Move

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On October 2, 2025, Brazil’s Secretariat of Prizes and Betting (SPA) implemented new regulations prohibiting individuals who benefit from social welfare programs, such as Bolsa Família (PBF) and the Continuous Cash Benefit Program (BPC), from participating in fixed-odds betting. This regulatory move highlights the government’s ongoing efforts to bring more structure and accountability to the burgeoning gambling industry in Brazil. The fresh measures coincide with a broader governmental crackdown on illegal gambling activities, showcasing a determined approach to regulate the sector effectively.

Under the newly issued Ordinance SPA/MF No. 2,217/2025 and Normative Instruction SPA/MF No. 22/2025, gambling operators are required to cross-reference player registrations with an updated database of PBF and BPC beneficiaries. This verification process is facilitated through the Government’s Betting Management System (Sigap) using the players’ CPF tax numbers. If a match is found, the operator must block or close the account and return any deposited funds to the individual. The responsibility to enforce these measures falls solely on the operators, who will face penalties for non-compliance, while beneficiaries retain their welfare benefits without risk of suspension.

The Ministry of Finance has provided a 30-day period for operators to integrate and implement these new systems. By putting the onus on companies, Brazil underscores its commitment to ensuring transparency and accountability in the gambling sector. This latest intervention follows a Supreme Court injunction related to cases ADI 7721 and 7723, along with guidance from the Federal Court of Accounts (TCU).

The latest action is part of a larger strategy by the Brazilian government to intensify oversight of the gambling arena, which has witnessed significant growth over recent years. Since October 2024, the National Telecommunications Agency (Anatel) has blocked more than 15,000 unlicensed gambling websites as part of an aggressive campaign against unauthorized activities. Concurrently, the SPA has heightened its regulatory inspections, with the previous quarter alone witnessing 66 site visits across 93 licensed operators and resulting in 35 sanctions.

Financial institutions are also facing increased scrutiny. During the first half of 2025, 24 banks and financial institutions reported nearly 300 suspicious activities linked to illegal betting operations, which led to the closure of 255 accounts. Furthermore, notices were sent to thirteen payment providers, culminating in the termination of 45 corporate accounts. Officials emphasize that these actions represent tangible progress in addressing illicit activities and reinforcing the integrity of the financial system linked to gambling.

SPA secretary Regis Dudena remarked that safeguarding citizens, their rights, safety, and personal data remains paramount for the Brazilian government. This statement reinforces the government’s commitment to protecting its citizens from the potential negative impacts of gambling, especially among vulnerable groups.

Amid these regulatory developments, Brazilian legislators are also exploring the possibility of increasing the minimum gambling age from 18 to 21 years. This proposed legislation aims to further shield vulnerable consumers by limiting their exposure to gambling platforms. Additionally, the bill suggests implementing a ban on gambling advertisements between 6:00 a.m. and 10:00 p.m., creating a more robust protective framework for consumers.

While these measures are in place to protect citizens and streamline the gambling industry, there is another perspective to consider. Some industry experts argue that overly stringent regulations might stifle the growth of a potentially lucrative market. They caution against setting policies that could lead to an underground gambling market, which would be harder to control and potentially more harmful to consumers. Instead, these voices suggest a balanced approach that would ensure consumer protection while allowing the industry to thrive under regulated conditions.

This divergence in viewpoints reflects the broader debate on how best to manage the gambling sector, balancing economic growth with social responsibility. As Brazil continues to develop its regulatory framework, it remains essential to consider these differing perspectives to create a comprehensive approach that benefits all stakeholders involved.

In summary, Brazil’s recent regulatory actions mark a significant step toward establishing a more controlled and transparent gambling industry. By focusing on protecting vulnerable populations and reinforcing financial oversight, the government is demonstrating a commitment to both social and economic objectives. However, as regulations tighten, the challenge will be to maintain a balance that supports industry growth without compromising citizen welfare. The unfolding developments in Brazil’s gambling sector will undoubtedly be watched closely by industry experts and policymakers alike, as they may set precedents for similar regulatory approaches in other countries.