Benefits spending on gambling in Brazil cause for concern says state deputy

  • UM News
  • Posted 1 year ago
00:00 / 00:00

During the a session of the state assembly of the state of Maranhão state deputy  Carlos Lula expressed his concern about the rise of  sports betting in Brazil, particularly among the low-income population. According to data from the Central Bank, in August, around 5 million beneficiaries of the Bolsa Família program allocated R$3 billion to betting companies via payment method Pix, with an average expenditure of R$ 100. This amount corresponds to 20% of the total funds disbursed by the government for the social assistance program during the same period. Among these bettors, 70% are heads of households, who sent R$ 2 billion, or 67% of the total amount.

Carlos Lula highlighted that the country is facing a true “epidemic of gambling addiction,” disproportionately affecting the most vulnerable segments of the population. “It’s the illusion of quickly changing one’s life. And we know that the house never loses. People bet once, twice, three times, and even when they win, they don’t calculate how much they’ve already lost, perpetuating the cycle of gambling,” the deputy warned.

The Central Bank’s report also reveals that approximately 24 million Brazilians participated in gambling and betting, making at least one transfer via Pix to these companies. Most bettors are between 20 and 30 years old, but the average betting amount significantly increases with age, ranging from R$ 100 per month for younger individuals to over R$ 3,000 monthly for those over 60 years old.

Lula advocated for the urgent need to regulate the advertising of betting companies. “We need to regulate the advertising of these ‘bets.’ Although we have state authority to regulate consumer rights, this regulation should be national due to the reach of advertisements and sponsorships, including those of Brazilian championship teams,” the parliamentarian emphasized.

The deputy also expressed concern about the increasing impact of betting on the Unified Health System (SUS). “In England, nearly 5% of the healthcare budget is allocated to treat gambling addiction, which has effects similar to drug addiction. We need to bring this debate to the Assembly because we are facing an epidemic of sports betting, and SUS, which already operates with scarce resources, will have to bear this additional burden,” concluded Carlos Lula.

PIX is an instant payment method created and supported by the Central Bank of Brazil. All wallets and banks are interoperable with PIX as transfers and payments from one bank or payment institution to another happen in real-time.

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