20% of Brazil’s Social Benefits Used for Online Gambling in August

Minister Luiz Fux, of Brazil’s STF (Supreme Federal Court) has announced that a public hearing on sports betting and online gaming will take place on November 11th, 2024.

Minister Fux stated that the hearing seeks to “clarify” the technical aspects of mental health and the neurological effects of betting on human behavior.

The meeting will facilitate discussions on:

• Economic effects for trade
• What impacts on the domestic economy
• Social consequences of betting

Social Benefits Being Used for Gambling

The news of the pubic hearing follows shortly after Brazil’s Social Development Ministry said that it will propose measures to stop people using their social benefit payments for online gambling.

A recent report by the Central Bank revealed that 5 million people who are in receipt of social benefits payments spent over R$3 billion ($540 million) through online gambling companies using the Pix payment platform in August. The average spend per person was R$100 ($18).

The amount spent on online gambling accounts for approximately 20% of the Bolsa Familia benefits program’s budget for the month. The program supports 21 million families who receive an average of R$685 ($126) per month.

Speaking to journalists, Brazil’s Social Development Minister Wellington Dias said:

“We are working on alternatives. One of them is a zero limit on the use of social benefits, like Bolsa Familia, for gambling or betting. And we are considering a control mechanism based on tax ID numbers to implement the necessary measures.”

Brazil’s Central Bank chief Roberto Campos Neto added:

“This is happening, and it’s happening at a fast pace, which could compromise the income of these lower-income households at some point.”

Credit Card Ban Brought Forward

The National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) have both advised their members to introduce a credit card ban ahead of time.

Both groups represent online gambling operators and have stated that all members have agreed to the early implementation of the ban which was due to take effect on January 1st, 2025.

However, despite hopes that the ban would help to mitigate some of the negative impacts of problem gambling in Brazil, gambling operators have stated that credit card deposits represent only 3% among ANJL operators and 0.5% among IBJR operators.

Olivia Richardson

Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.