Brazil to block online betting for Bolsa Familia, BPC beneficiaries

Brazil to block online betting for Bolsa Familia, BPC beneficiaries

The Federal Government of Brazil announced that, before the end of the year, it will block new deposits on online betting sites made by beneficiaries of the social programs Bolsa Familia and Continuous Cash Benefit (BPC). This decision responds to a determination by the Supreme Federal Court (STF), unanimously approved in November of last year, which obliges the public authorities to prevent the use of social resources on betting platforms, popularly known as "bets".

The Secretary of Prizes and Bets of the Ministry of Finance, Regis Dudena, explained that the measure follows a legal requirement already foreseen. "It is a centralized registry with the data of the beneficiaries of these two major social programs, which will be consulted by betting houses through APIs (protocols). The betting houses will not receive the complete data of all beneficiaries, but must consult at specific points to ensure that these beneficiaries cannot deposit money," Dudena detailed. In August, the Bolsa Familia program benefited 19.2 million families, representing more than 50 million people.

Meanwhile, the BPC had 3.75 million beneficiaries in July, according to data from the Ministry of Development and Social Assistance. According to Dudena, by the end of the year, about 80 authorized sports betting houses operating in the country will have to consult, through the system of the Federal Data Processing Service (Serpro), each new registration and deposit made. The platform is expected to start operating in September, with a month of adaptation, and be fully operational in December. The BPC guarantees a monthly minimum wage to low-income people in two situations: elderly people or those with disabilities. Those entitled to the benefit are people aged 65 or older or with some disability, whether native or naturalized Brazilians, or Portuguese nationals residing in Brazil, and who present a family income of up to a quarter of the minimum wage per person, with data confirmed in the Cadastro Único (CadÚnico) and in the systems of the National Institute of Social Security (INSS). Meanwhile, Bolsa Familia is intended for families with a monthly income of up to 218 reais per person. The minimum benefit amount is 600 reais. To receive it, the Cadastro Único must be updated for all family members.

The program also provides for additional cumulative benefits: 150 reais for each child up to 6 years old, 50 reais for pregnant women, 50 reais for youths between 7 and under 18 years old, and 50 reais for babies up to 6 months old. Regarding the volume of bets in the country, the Central Bank estimated that online bets move between 20 billion and 30 billion reais per month. However, Dudena relativized these figures, pointing out that the calculation only considers the inflow and outflow of funds, and not the amount actually lost by bettors.

According to the Ministry of Finance, deducting the prizes paid from the total bet, the real amount is around 2.9 billion reais monthly. "The money won in prizes is money from the bettors in any case. If you take the amount bet minus the prize, that is what really came out of the bettors' pockets and what remained in the betting house. Per year, that adds up to about 36 billion reais, and not between 20 billion and 30 billion per month," Dudena stated. This measure represents an important step in regulating the betting sector in Brazil, aiming to protect the most vulnerable sectors and ensure that social resources are not allocated to online gambling activities.

Tags: BRASIL, bolsa familia program, online betting, betting platforms