Ban on gambling for beneficiaries of Bolsa Família and BPC programs generates new business opportunities for organized crime.
The Ministry of Finance's Prize and Betting Secretariat (SPA-MF) has vetoed the participation of beneficiaries of Bolsa Família and the Continuous Benefit Payment (BPC) in regulated betting platforms in Brazil. The measure was published this Thursday (2) through a Normative Instruction, generating diverse reactions among entities and experts in the sector.
Normative Instruction No. 22, published in the Official Gazette of the Union on Wednesday (October 1st), obliges betting operators to block access for beneficiaries of these social programs. Simultaneously, Ordinance SPA/MF No. 2.217 amended the previous regulation to expressly include the prohibition of participation in bets with resources from these social programs.
Data from the Ministry of Social Development shows that in June of this year, 3,75 million people received the BPC (Continuous Benefit Payment) equivalent to one minimum wage. The Bolsa Família program reached 19,2 million families, or 50 million people, in August, who will not be able to use legalized betting services. Analyses indicate that the volume of bets may decrease between 20% and 30%, depending on the region where each platform operates predominantly.
Northeastern Brazil is expected to feel the greatest impact from the ban, according to leading surveys of gamblers' profiles. The region has a large number of beneficiaries of social programs and registers high adoption rates on betting platforms.
Industry reactions
The National Association of Games and Lotteries (ANJL) questioned the legal basis of the decision, pointing to a contradiction with a previous ruling by the Supreme Federal Court. According to the association, the Supreme Court had only restricted the direct use of benefit funds for betting, without preventing beneficiaries from using money from other sources for this purpose.
Anyone who wants to gamble and bet, but cannot do so legally, will seek it in the black market, which warns of the possible migration of prohibited users to the illegal market, where there are no control mechanisms, oversight, or responsible gambling practices.
The Brazilian Institute for Responsible Gaming (IBJR) expressed a different position, supporting the restriction. The organization argues that resources intended for family subsistence are incompatible with gambling and that gambling should be considered exclusively as a form of paid entertainment. The IBJR also highlighted the need to intensify the fight against clandestine platforms, which operate without offering consumer protections.
Industry executives consulted by BNLData predict two main effects: a reduction in the total volume of bets and a migration of affected users to the illegal market or to the operations of state and municipal lotteries.
Controversial issues
One controversial point mentioned in the BNLData interviews refers to the differentiated treatment between online betting and Caixa lotteries. Experts note that the lottery network constitutes the main channel for payment of government benefits and question why the ban was not extended to the 11 modalities operated by Caixa Loterias.
Some interviewees broadened the debate, suggesting that, following the same protective logic, beneficiaries should also be prevented from purchasing products such as alcoholic beverages and cigarettes, raising questions about the limits of state intervention in individual choices.
In an article published on BNLData, a consultant with experience as former president of Caixa Loterias and former undersecretary of Regulation at the Ministry of Finance presented reflections on the subject. He stated that online betting cannot be made a "scapegoat for social fragilities," arguing that the most effective solution would lie in expanding regulation, financial education, and protection for all consumers.
This measure comes in a context where social benefits paid by the federal government serve as a supplement to the income of people in situations of social vulnerability, which adds complexity to the debate about restrictions on the use of these resources. This particularity needs to be considered when establishing restrictive policies in the betting sector.
Experts warn of potential negative consequences from implementing the ban. People prevented from gambling legally may seek alternatives in the black market, creating opportunities for organized crime.
Public authorities and society should think carefully before transforming the good intentions of honorable citizens into new business opportunities for organized crime. History is full of examples, and if this measure succeeds, we could add yet another example to the 'prohibition industry,' which is a very lucrative activity that fuels another, far more dangerous industry that causes much more damage to society, such as corruption and organized crime.
