Brazil May Propose Steps to Block Use of Benefits for Online Bets

Brazil's Social Development Ministry announced that a working group will present measures next week to prevent the misuse of social benefit payments for online gambling, writes Reuters. Under President Luiz Inacio Lula da Silva, Bolsa Familia has been a key program for over 20 years. It provides direct cash transfers to Brazil's poorest households, costing approximately 168.6 billion reais ($31.04 billion) annually. This expenditure equates to about 1.5% of the country's GDP.

A recent report from the central bank revealed alarming statistics. In August, approximately 5 million individuals from beneficiary families sent 3 billion reais to online gambling platforms through the Pix payment system. The average expenditure per individual was 100 reais. This situation suggests that about 20% of the Workers' Party program's monthly budget was allocated to online betting. Currently, Bolsa Familia aids 21 million families, with each family receiving an average benefit of 685 reais per month, according to official statistics.

"We are exploring alternatives," said Wellington Dias, Brazil's Social Development Minister, in a video to journalists. He indicated that one proposal involves establishing a zero limit on the use of social benefits like Bolsa Familia for gambling. Furthermore, he suggested implementing a control mechanism based on tax identification numbers to facilitate necessary measures. A proposal for amending existing regulations will soon be presented to President Lula.

Minister Dias acknowledged the substantial average spending figure, which starkly contrasts with the program's intended purpose: to guarantee funds for food and essential family requirements. Earlier, central bank governor Roberto Campos Neto addressed the critical issue at an event. He stressed that the bank's intention was not to "demonize" Bolsa Familia. Instead, it sought to issue a cautionary alert, indicating that lower-income households are disproportionately channeling funds into gambling activities. "This trend is accelerating, potentially jeopardizing the incomes of these households," he remarked.

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