Brazil’s government has implemented a sweeping ban that bars recipients of social assistance programs from participating in fixed-odds betting, escalating efforts to regulate the country's gambling market and safeguard vulnerable citizens.
On October 1, 2025, the Ministry of Finance’s Secretariat of Prizes and Bets (SPA) published Ordinance No. 2,217 and Normative Instruction No. 22, prohibiting individuals enrolled in the Bolsa Família and Continuous Benefit Payment (BPC) programs from registering or placing bets with licensed operators.
Ban Expands on Prior Restrictions
While the Supreme Federal Court previously approved a measure banning the use of welfare funds for gambling, this new ordinance goes further—completely excluding beneficiaries from betting, regardless of the source of funds.
SPA head Regis Dudena emphasized the intent behind the decision, stating: “To ensure compliance with the Supreme Court’s ruling, it was necessary to develop a robust technical tool, carefully ensuring that the measure guaranteed the protection of the rights involved."
Dudena had previously acknowledged that restricting only welfare funds would be difficult, as most Bolsa Família recipients use online accounts that also receive other types of income.
How Operators Must Enforce the Ban
Licensed betting platforms now have 30 days to begin screening all users against a government-provided database of social welfare beneficiaries. The cross-referencing process will use Brazil’s betting management system, Sigap, and check each bettor’s Individual Taxpayer Registry (CPF).
Checks are required at registration, and then every 15 days for existing accounts. If an operator identifies a beneficiary, they must:
- Block registration or close the account
- Notify the user within 24 hours via email, SMS, or messaging apps
- Allow a two-day window for users to withdraw any balance
- Return unclaimed funds after 180 days to public programs like Fies and Funcap
If a user is later removed from the prohibited list, they may resume betting. However, operators are forbidden from contacting them about this change.
Industry Response: Support and Concern
The measure has been controversial. The National Association of Games and Lotteries (ANJL) criticized the blanket ban, arguing it exceeds the court's original ruling, which only restricted gambling with welfare money.
Ed Birkin of H2 Gambling Capital suggested the restriction may push vulnerable users toward illegal betting markets, undermining its intended purpose.
However, not all feedback was negative. The Brazilian Institute of Responsible Gaming (IBJR) welcomed the measure, calling it a step toward protecting at-risk populations.
Operators failing to comply risk heavy penalties, including license suspension or termination and fines up to BRL 2 billion (or 20% of the previous year's revenue). They must also retain all user communications for five years and complete a full cross-check of their customer base within 45 days.
The ban aligns with directives from the Federal Supreme Court (STF) and the Federal Court of Auditors (TCU), and updates SPA Ordinance No. 1,231, initially passed in July 2024, to include this new category of restricted individuals.
Source:
“SPA publishes rule to comply with STF decision to restrict the use of social benefits in betting”, gov.br, October 1, 2025
