Following a two-day session at Brazil’s Federal Supreme Court in November, the court decided to sustain an urgent directive issued by Minister Luis Fux. This directive imposes an immediate prohibition on using funds from social welfare programs, particularly the Bolsa Família initiative, for betting activities in Brazil. Bolsa Família is a program that offers financial support to impoverished families, with the condition that their children attend school and receive vaccinations.
Nonetheless, last Thursday, December 12, the Attorney General’s Office (AGU) submitted an appeal against this ban. They argued that the government lacked the technical infrastructure to effectively implement such a measure, primarily because it was challenging to distinguish social welfare funds from money used for betting.
The AGU stressed that they were not opposing the ban in principle but required a “reasonable period” to execute it effectively.
However, Court of Auditors Minister Jhonathan de Jesus has urged the ministries of finance, sports, and development, as well as the federal bank Caixa Econômica Federal, to promptly reinstate the ban.
These entities have been given 15 days from last Sunday, December 15, to deliberate on the issue, as per the signed decision.
Games Magazine Brazil reports that Jesus has further requested evidence regarding the misuse of social welfare for betting. He stated, “Allocating funds to betting, an activity that does not aid in meeting basic needs or alleviating poverty, undermines these goals and jeopardizes the effectiveness of social assistance policies.”
### Can the Brazilian Government Intervene?
Back in September, Brazil’s Central Bank revealed that one-fifth of the funds from its Bolsa Família program, distributed in August, were expended on online gambling.
The AGU argues that once social welfare funds are disbursed to recipients, the government relinquishes control over how that money is spent.
They also highlighted data from the National Secretariat of Citizen Income (Senarc), which shows that only 1% of Bolsa Família beneficiaries fully withdraw their funds using the designated card. The remaining 99% use online bank accounts that receive Bolsa Família benefits, which can also accept other income sources like wages.
“It is crucial to understand that potentially blocking these accounts intrudes on the private domain, where individuals manage additional income,” the AGU asserted.
Questions also arise regarding whether state regulators like the Rio de Janeiro State Lottery (Loterj) are obligated to comply with such measures.