Brazil Extends Deadline for Betting Ban Amid Black Market Stress

The Brazilian government has extended by 30 days the deadline for betting operators to enforce a controversial ban preventing social welfare beneficiaries from participating in fixed-odds betting. The move, announced by the Secretariat of Prizes and Bets (SPA), comes amid growing concerns that the prohibition could drive vulnerable citizens toward unregulated gambling markets.

The ban was formally established on 30 September through Normative Ordinance No. 2,217/2025 and Normative Instruction No. 22, which prohibit recipients of federal welfare programmes such as Bolsa Família and the Continuous Benefit Payment (BPC) from placing bets with licensed operators. The measure follows a November 2024 Supreme Federal Court (STF) ruling that upheld an emergency order restricting the use of welfare funds for gambling.

Under the original terms, licensed operators were given 30 days to identify and close the accounts of bettors receiving social welfare. With that deadline approaching, the SPA announced an extension but offered no explanation for the delay.

Measure	Published	Affected Programmes	Original Compliance	Extension	Black-market Risk
Normative Ordinance No. 2,217/2025 & Normative Instruction No. 22	30 September 2025	Bolsa Família; Continuous Benefit Payment (BPC)	Operators given 30 days to close beneficiary accounts	30-day extension granted by SPA (no reason provided)	ANJL study: 45% of beneficiaries may migrate to illegal operators

 

Policy Intent vs. Market Reality

SPA chief Regis Dudena defended the ban, arguing it would protect low-income citizens from “betting beyond their means.” He said the prohibition reflects the government’s broader effort to align gambling regulation with social protection goals.

However, industry observers and trade bodies have criticized the measure as impractical and counterproductive. The National Association of Games and Lotteries (ANJL) expressed strong opposition, noting that the STF’s initial decision limited only the use of welfare funds for gambling—not participation itself. According to an ANJL-commissioned study shared with BNL Data, 45% of affected beneficiaries intend to continue gambling through illegal or offshore operators once the ban takes full effect.

“This will not stop people from betting; it will only change where they bet,” the report concluded, warning that the policy could weaken consumer protections and reduce tax revenue from regulated operators. Industry analysts have echoed these concerns. Ed Birkin, managing director at H2 Gambling Capital, said the government’s goal to prevent irresponsible gambling among welfare recipients is “well-intentioned but unenforceable.”

“There may be some who argue that people should spend money as they wish,” Birkin told iGB. “But if the state provides benefits for essential needs, it makes sense to prevent misuse. The problem is, unless enforcement extends to all spending, those determined to gamble will simply move to illegal operators.”

 

This ban won’t stop betting; it will only change where people place their bets.

 

Regulatory Uncertainty

The SPA’s decision to extend the compliance deadline adds to uncertainty for betting companies navigating Brazil’s evolving regulatory landscape. The country is in the process of implementing a new licensing framework for sports betting, with the government seeking to balance revenue generation, social responsibility, and consumer protection.

While the ban’s supporters frame it as a safeguard for vulnerable populations, critics argue it risks undermining the very objectives of Brazil’s regulated gambling system. Without a clear enforcement mechanism or support measures for affected individuals, analysts warn the policy may drive more activity underground—beyond the reach of regulators or consumer safeguards.

For now, operators await further guidance from the SPA on when and how the prohibition will be implemented in full.