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The federal government moves to stop welfare funds from flowing into betting accounts after Supreme Court pressure.
The Brazilian Federal Government will prevent beneficiaries of the Family Allowance (Bolsa Família) and the Continuous Cash Benefit (BPC) from making new deposits in online gambling accounts until the end of the year. The measure follows a Supreme Federal Court ruling requiring the government to stop social assistance funds being used for online betting.
Why the Supreme Court forced government action
The ruling came after mounting pressure over welfare money funding gambling habits.
According to Regis Dudena, Secretary of Prizes and Gambling at the Ministry of Finance, the measure complies with a Supreme Federal Court (STF) ruling. The court required the government to stop the use of social assistance funds for online gambling. Two restrictions will be implemented: beneficiaries cannot open new betting accounts, and those with existing accounts will be blocked from making new deposits.
How the new deposit blocking system actually works
The government isn’t messing about with this enforcement mechanism.
Brazilian law requires users to register a CPF (individual tax ID number) and a bank account to hold online gambling accounts. The government will require approximately 80 licensed sports betting operators to check a centralised system provided by the Federal Data Processing Service (Serpro) whenever a new user registers or makes a deposit.
What this means for over 50 million family allowance recipients
The numbers show just how many people this affects.
In August, Family Allowance paid benefits to around 19.2 million families, equivalent to more than 50 million people. The BPC had 3.75 million beneficiaries in July. Dudena explained that operators will consult the system via API without receiving data of all beneficiaries, but must check at specific points to ensure these beneficiaries cannot deposit money.
How Brazil’s online betting market actually looks
The real spending figures tell a different story from the headlines.
The Ministry of Finance estimates that effective monthly spending on online bets, calculated as total wagers minus prizes paid, is around BR$2.9 billion ($580 million). This figure sits far below the BR$20-30 billion monthly figures reported by the Central Bank. Around 17.7 million Brazilians placed bets in the first half of 2025, averaging about BR$164 per active bettor per month.
When the centralised database goes live
The timeline gives operators just weeks to prepare.
Dudena said the system is expected to start operating in September, with a one-month adaptation period, and be fully functional by the end of the year. He noted that the government is starting to examine player behaviour more closely, recognising that many players have very low spending whilst a few have very high spending.
What other countries are doing about problem gambling
Brazil isn’t alone in taking action against gambling-related social issues.
In Argentina, the Senate of Salta recently approved a law barring individuals who are behind on child support from entering casinos, sports stadiums, and cultural events. This shows a regional trend towards using administrative measures to address gambling-related social problems.
Source: Gaming America
