Brazil Cracks Down on Individuals Gambling with Social Benefits

This newest measure marks another significant milestone in the nation’s efforts to usher in a safe and sustainable gambling industryImage Source: Shutterstock.com

Brazil has introduced new regulations that prohibit recipients ofsocial welfare programs from ngaking part in fixed-odds betting. This development marks another step in the government’s mission to bring order and accountabilityto the fast-growing gambling sector. The ban also aligns with recent enforcement reforms that cracked down on unauthorized betting activity.

Only Operators Will Face Compliance Penalties

On Wednesday, Brazil’s Secretariat of Prizes and Betting(SPA) issuedOrdinance SPA/MF No. 2,217/2025and Normative Instruction SPA/MF No. 22/2025, setting restrictions on beneficiaries of the Bolsa Família(PBF) and theContinuous Cash Benefit Program(BPC). These measures follow a Supreme Court injunction in casesADI 7721and 7723, as well as advice of the Federal Court of Accounts (TCU). 

Betting operators must nowcross-check player registrationswith a newly established database for PBF and BPC beneficiaries. Gambling companies must verify their users’ details through the Government’s Betting Management System(Sigap) using gamblers’ CPF tax numbers. In case of a match, the account must beblocked, closed, and the deposited funds returned to the individual.

The responsibility to enforce this new restriction falls squarely on operators. Beneficiaries will not facesuspensions or cuts in welfare payments. Instead, companies must ensure compliance and will face penalties for violations. The Ministry of Finance has given operators a30-day deadlineto implement the new system. 

Brazil Remains Set on Promoting Transparency and Accountability

This announcement comes as the Brazilian regulator intensifies its scrutiny of the gambling sector. Since October 2024, Brazil’sNational Telecommunications Agency(Anatel) has blockedmore than 15,000unlicensed gambling sites. The SPA has also intensified its inspections. In the last quarter, the authority conducted66 site visitsacross 93 licensed operators, leading to 35 sanctions.

Financial oversight is another area of focus. Throughout the first half of 2025, 24 banks and financial institutionssubmittednearly 300 suspicious activity reports, resulting in the closure of255 accountslinked to illegal betting. Thirteen payment providers also received notices, leading to 45 corporate account closures. Officials argue that this approach demonstrates measurable progress rather than abstract policy discussions.

“Protecting citizens, their safety, rights, and personal data is always a priority for the Brazilian Government.”

Regis Dudena, SPA secretary

Meanwhile, Brazilian lawmakers are also contemplating raising the minimum gambling agefrom 18 to 21. A new bill aims to protect vulnerable consumers by limiting their access to gambling platforms. According to the proposed legislation, gambling advertising will also be bannedbetween 6:00 a.m. and 10:00 p.m.If the bill is successful, it should complement existing regulations, creating a comprehensive customer protection framework.