Brazil’s AGU Appeals Court Order to Control Bolsa Família Spending on Bets

On December 12, Brazil’s Attorney General’s Office (AGU) asked Brazil’s Supreme Court (STF) to reconsider its recent decision that orders the government to take steps to stop Bolsa Família recipients from using their aid money to place bets. 

Brazil’s AGU Argues Bolsa Família Funds Blend with Other Income

The AGU claimed the government cannot control how people spend the program’s funds once they receive them, as this money mixes with other income in the same bank account.

In its plea, the AGU stressed that once the Bolsa Família payment lands in a family’s account, the money becomes the account holder’s property, and the government has no say over how it is spent, reported Folha de S. Paulo. The AGU’s filing submitted as a request to clarify, aims to grasp how the government should follow the court’s ruling, given the real-world hurdles outlined. The AGU also asked the court to grant a fair amount of time to put the required steps into action.

The government’s lawyers pointed to technical evaluations from two state organizations: the Secretariat of Prizes and Bets (SPA), which is part of Brazil’s Finance Ministry, and the National Secretariat of Citizen Income (Senarc) operating under Brazil’s Social Development Ministry. Senarc reported that almost all families getting Bolsa Família aid use standard bank accounts that might also handle other income, like paychecks. Just a handful of recipients take out their benefits using the program’s specific card.

AGU Questions Broader Impact of Court Ruling

The AGU’s petition additionally voiced worries about the wider effects of the court’s ruling. The agency asked whether the decision goes beyond Bolsa Família and covers other federal benefits as well as state-level social aid programs since these programs can also allow betting activities. 

What is more, the government sought clarity on sports betting rules if states need to follow federal guidelines on the commercial use of fixed-odds lottery-style betting.

In its ruling, the Supreme Court ordered quick action to stop ads that target kids and teens for betting services. The court agreed on this decision pointing out the need to protect these groups right away due to concerns about how gambling hurts family finances and young people.

Ricardo Paes de Barros, who helped create Bolsa Família, said that online betting getting more popular is a problem for all of society, not just poor families.

He said that the real fix is to have stricter rules for the betting industry and to educate Brazilians better regarding money. He did not think limiting how people on social aid spend their money was the answer.