The launch of Brazil’s forthcoming betting market must be safeguarded by a federal policy on gambling addiction to eliminate social harms, such as public debt.
This demand was issued by President Inácio Lula da Silva during ongoing meetings with senior ministers regarding the vulnerabilities of the betting regime, alongside discussions on a federal framework to regulate fixed-odds betting and online gambling in Brazil.
Last week, Lula held meetings with Vice President 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).
The President expressed direct concerns over gambling addiction and the social harm caused by citizens accruing debt through gambling activities, which he identified as liabilities that must be addressed by the betting regime.
Lula’s concerns about public debt have been heightened by the recent emergence of betting platforms, following a Central Bank report revealing that Bolsa Família beneficiaries had spent BRL 3bn (€500m) on betting sites, as tracked through the government’s PIX payment system.
The exposure of the Bolsa Família programme is of utmost concern to Lula, who founded the welfare programme in 2004 during his first term in office, providing direct BRL subsidies to poor families in Brazil. According to Brazil’s Central Bank, approximately 3 million impoverished families currently rely on Bolsa Família subsidies, representing around 50 million people—the majority of Brazilians living in poverty.
Finance Minister Fernando Haddad has been instructed to evaluate the payment methods for the betting regime, with the government set to order the 95 operators seeking licences to prohibit the use of Bolsa Família cards for betting-related payments.
“A lot of people are getting into debt, spending money they don’t have, and we believe this should be treated as an addiction problem. People are addicted, and we are addressing this with our Finance Minister, who has been trying to tackle this issue since we took office,” said the President.
Haddad responded by stating that the Ministry of Finance had already begun its work to protect Bolsa Família recipients, in cooperation with Anatel, the federal communications agency, to shut down 2,000 illegal websites targeting users of the welfare scheme.
Before the launch, the betting regime must ensure the prevention of fraud, with the Central Bank launching an investigation into whether beneficiaries’ tax identification numbers (CPFs) are being fraudulently used for money laundering in online gambling schemes.
Beyond financial regulation, the Lula administration is also prioritising the mental and social well-being of Bolsa Família beneficiaries. Recognising that gambling addiction is a growing problem, the government has proposed a partnership between the Unified Health System (SUS) and the Unified Social Assistance System (SUAS) to provide support for individuals suffering from compulsive gambling.
By offering access to treatment for gambling addiction, the government hopes to mitigate the social damage caused by betting and ensure that vulnerable populations, particularly those relying on Bolsa Família, receive the care and support they need to overcome the harmful effects of gambling.
The initial proceedings of the betting regime will be reviewed by the Central Bank, which will submit a report to the Ministry of Finance on the financial and economic impacts of the betting market, with a focus on public debt.
Haddad emphasised that licensed operators of the betting market must ensure compliance from day one with licensing, conduct, and anti-money laundering (AML) duties to protect Brazilian consumers from gambling-related harms.