Government to ban Bolsa Família card for bets after Lula's urgent request
President Lula (PT) expressed indignation to aides in New York upon learning of the impact of the bets on the finances of the poorest population and the high level of indebtedness. He has already demanded that his government urgently issue measures to reverse this scenario, reveals Folha de S.Paulo.
The Minister of Social Development, Wellington Dias, told Folha that Lula requested "urgent action" on the matter. His ministry is responsible for the program.
"The president argues that Bolsa Família is for the food and basic needs of each beneficiary family. He called for urgent action," said Dias. The Bolsa Família card, which can be used for debit purchases and other transactions, such as withdrawing the benefit, should be banned for gambling.
"The regulation of betting, coordinated by the Ministry of Finance and the Civil House, must contain a rule with a zero limit for the social benefits card for games and control based on the CPF of the player."
CPF monitoring is foreseen in the sector's regulation in Brazil. "You will have CPF by CPF of whoever is betting, all confidential, but they will open this account. We will be able to have an alert system in relation to people who are revealing a certain psychological dependence on gambling," detailed the Minister of Finance, Fernando Haddad, this Wednesday (25).
The Chief Executive became aware of the situation through a technical note prepared by the Central Bank, which indicated that beneficiaries of the Bolsa Família program spent R$ 3 billion on bets via Pix alone, in the month of August.
Lula expressed concern to interlocutors about the impact on people in vulnerable situations, including adolescents and young people.
Almost a third (30%) of Brazilians aged 16 to 24 said they have gambled, according to a Datafolha survey published in January of this year. The percentage among young people is double the national average of 15%.
Betting has been legal in the country since 2018, following a law passed during the Michel Temer (MDB) administration. The Jair Bolsonaro (PL) government was supposed to regulate the market, but failed to do so during its four-year term – during this period, betting experienced enormous growth without rules or oversight.
Lula has complained to interlocutors about Bolsonaro's failure to comply with the 2018 law, which stipulated a two-year period for regulation, extendable for another two years. Lula attributes the worsening of the problem to Bolsonaro.
In 2023, the Lula government issued a provisional measure (MP) on the subject and, from there, a bill began to be discussed in Congress and was approved at the end of the year.
The legislation deals with so-called fixed-odds games, where the potential winnings from a bet are known (based on football match results, for example). The major change in the Chamber was the inclusion of online games, which includes casinos and other games of chance in a virtual environment—something that was not included in the government's original text.
Market regulation has been led by the Ministry of Finance, which created a department to oversee prizes and betting. The full effects of legalization will come into force in January 2025, and the government expects significant revenue.
But starting next month, only companies that have registered to be regularized with the Treasury will be considered legal. Other websites will likely be taken down.
In recent days, several parliamentarians have presented proposals to change the text they themselves endorsed last year—including members of Lula's base. Even members of the PT (Workers' Party) now say they underestimated the negative effects and reach of this market on Brazilians' finances.
The reaction within Congress comes amid allegations involving gambling, the emergence of more robust data on impacts on daily life, and clashes in sectors such as retail and banking.
There are already proposals to restrict gambling for those receiving Bolsa Família benefits. Of the 20 million beneficiaries, 5 million placed bets last month, according to a statement from the Central Bank. Of these, 70% are heads of household, meaning those who actually receive the money transferred by the government.
On the same day this information was made public, Lula said that this is a problem that needs to be regulated.
"Brazil has always been against casinos, any kind of gambling. Today, through cell phones, gambling is now available in families' homes, in their living rooms. We're seeing the poorest people in Brazil getting into debt trying to make money by gambling," he said.
“It's a problem that we're going to have to address, otherwise soon we'll have a casino operating in every home's kitchen,” he added, during the meeting hosted by Brazil and Spain.
The Central Bank's data also caused repercussions in the Ministry of Finance. Minister Fernando Haddad said that the regulation will not only look at the fiscal side, but will also protect bettors.
