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Brazil Cracks Down on Individuals Gambling with Social Benefits

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Brazil has introduced new regulations that prohibit recipients of social welfare programs from taking part in fixed-odds betting. This development marks another step in the government’s mission to bring order and accountability to the fast-growing gambling sector. The ban also aligns with recent enforcement reforms that cracked down on unauthorized betting activity.

Only Operators Will Face Compliance Penalties

On Wednesday, Brazil’s Secretariat of Prizes and Betting (SPA) issued Ordinance SPA/MF No. 2,217/2025 and Normative Instruction SPA/MF No. 22/2025, setting restrictions on beneficiaries of the Bolsa Família (PBF) and the Continuous Cash Benefit Program (BPC). These measures follow a Supreme Court injunction in cases ADI 7721 and 7723, as well as advice of the Federal Court of Accounts (TCU). 

Betting operators must now cross-check player registrations with a newly established database for PBF and BPC beneficiaries. Gambling companies must verify their users’ details through the Government’s Betting Management System (Sigap) using gamblers’ CPF tax numbers. In case of a match, the account must be blocked, closed, and the deposited funds returned to the individual.

The responsibility to enforce this new restriction falls squarely on operators. Beneficiaries will not face suspensions or cuts in welfare payments. Instead, companies must ensure compliance and will face penalties for violations. The Ministry of Finance has given operators a 30-day deadline to implement the new system. 

Brazil Remains Set on Promoting Transparency and Accountability

This announcement comes as the Brazilian regulator intensifies its scrutiny of the gambling sector. Since October 2024, Brazil’s National Telecommunications Agency (Anatel) has blocked more than 15,000 unlicensed gambling sites. The SPA has also intensified its inspections. In the last quarter, the authority conducted 66 site visits across 93 licensed operators, leading to 35 sanctions.

Financial oversight is another area of focus. Throughout the first half of 2025, 24 banks and financial institutions submitted nearly 300 suspicious activity reports, resulting in the closure of 255 accounts linked to illegal betting. Thirteen payment providers also received notices, leading to 45 corporate account closures. Officials argue that this approach demonstrates measurable progress rather than abstract policy discussions.

Protecting citizens, their safety, rights, and personal data is always a priority for the Brazilian Government.

Regis Dudena, SPA secretary

Meanwhile, Brazilian lawmakers are also contemplating raising the minimum gambling age from 18 to 21. A new bill aims to protect vulnerable consumers by limiting their access to gambling platforms. According to the proposed legislation, gambling advertising will also be banned between 6:00 a.m. and 10:00 p.m. If the bill is successful, it should complement existing regulations, creating a comprehensive customer protection framework.

Categories: Sports