Brazil’s President Luiz Inácio Lula da Silva has demanded a federal gambling policy to protect Bolsa Família beneficiaries from addiction and financial strain.
The Brazilian government must implement a federal policy on gambling addiction to protect citizens and eliminate social harms, such as public debt, as the betting market prepares to launch.
President Inácio Lula da Silva has held ongoing meetings with senior ministers to address the vulnerabilities of the betting regime and develop a federal framework to regulate fixed-odds betting and online gambling in Brazil.
Last week, Lula met with VP Geraldo Alckmin, and Ministers Rui Costa (Civil House), Fernando Haddad (Finance), Wellington Dias (Social Development and Assistance for Families), Nísia Trindade (Health), André Fufuca (Sports), and Ricardo Lewandowski (Justice) to discuss the matter.
Lula voiced his concerns about gambling addiction and the social harm caused by citizens accruing debt through gambling activities. He stressed that these issues need to be tackled by the new betting regime.
He is particularly alarmed by the growing public debt tied to the recent emergence of betting platforms. A Central Bank report found that Bolsa Família beneficiaries had spent BRL 3bn (€500m) on betting sites, tracked through the government’s PIX payment system.
Lula remains highly concerned about the integrity of the Bolsa Família programme, which he launched in 2004 to provide direct financial support to poor families in Brazil. According to the Central Bank, around 3 million impoverished families rely on Bolsa Família subsidies, representing approximately 50 million people – the majority of Brazil’s poor population.
Lula has instructed Finance Minister Fernando Haddad to review the payment methods used within the betting regime. The government will require the 95 operators seeking licences to prohibit the use of Bolsa Família cards for gambling-related payments.
“Many people are getting into debt, spending money they don’t have. We believe gambling addiction needs to be treated as a serious problem. People are addicted, and we’re addressing this with the Finance Minister, who has been working on it since we took office,” Lula said.
Haddad noted that the Ministry of Finance, in collaboration with Anatel, the federal communications agency, has already begun shutting down 2,000 illegal websites that target Bolsa Família recipients.
Before the betting regime officially launches, it must take steps to prevent fraud. The Central Bank is investigating whether beneficiaries’ tax identification numbers (CPFs) have been used for money laundering through online gambling.
Beyond financial regulation, Lula’s administration also prioritises the mental and social well-being of Bolsa Família beneficiaries. Acknowledging that gambling addiction is a growing issue, the government has proposed a partnership between the Unified Health System (SUS) and the Unified Social Assistance System (SUAS) to provide support for individuals dealing with compulsive gambling.
By ensuring access to treatment for gambling addiction, the government aims to mitigate the social damage caused by gambling and ensure that vulnerable populations, particularly those reliant on Bolsa Família, receive the help they need to overcome its harmful effects.
The Central Bank will review the early stages of the betting regime and submit a report to the Ministry of Finance, focusing on the financial and economic impacts of the market, with particular attention to public debt.
Haddad highlighted the importance of licensed operators ensuring compliance from day one with the licensing, conduct, and anti-money laundering (AML) regulations, to protect Brazilian consumers from gambling harms.
Last month, the Brazilian Federation of Banks (Febraban) called on the government to enforce the planned ban on using credit cards for betting sooner than initially scheduled.
