Brazil Gives Operators More Time to Enforce Welfare Betting Ban

The Brazilian government has given licensed betting operators an additional 30 days to comply with new rules banning social welfare beneficiaries from gambling. The decision, announced by the Secretariat of Prizes and Bets (SPA), delays the enforcement of a measure that has divided policymakers, operators, and social advocates since it was first unveiled in late September.

The prohibition was formalized through Normative Ordinance No. 2,217/2025 and Normative Instruction No. 22, which together bar beneficiaries of federal social welfare programmes such as Bolsa Família and the Continuous Benefit Payment (BPC) from participating in any fixed-odds betting. The measure expands on a November 2024 ruling by the Supreme Federal Court, which initially prohibited gambling using welfare proceeds but stopped short of banning welfare recipients outright.

 

Measure	Authority	Original deadline	Extension	Industry concern
Ban on fixed-odds betting by welfare recipients	Secretariat of Prizes and Bets (SPA)	30 days from publication (30 Sep 2025)	Extended by 30 days (no reason given)	Risk of migration to black-market gambling

The Recent Developments

Under the original ordinance, betting companies were required to identify and close the accounts of welfare recipients within 30 days. The SPA’s new extension postpones that deadline, giving operators more time to adapt their verification systems and ensure compliance. However, the agency offered no explanation for the delay, leaving questions about the government’s readiness to enforce the measure and the technical challenges operators may be facing.

SPA chief Regis Dudena defended the broader restriction, arguing that the policy aims to protect vulnerable populations and ensure that public funds meant for essential living expenses are not diverted toward gambling. According to Dudena, the government’s goal is to “preserve the integrity of social welfare programmes” and prevent “potential financial exploitation” of low-income citizens. Supporters of the ban have framed it as a necessary step to uphold the social purpose of benefits like Bolsa Família.

Yet the betting sector and policy analysts have warned the measure could have unintended consequences. The National Association of Games and Lotteries (ANJL) criticized the SPA’s approach for exceeding the scope of the Supreme Court’s original ruling. The group argued that while restricting gambling with welfare funds is justifiable, a total ban on all betting activity by welfare recipients amounts to excessive paternalism and risks alienating a large group of consumers who already engage with legal betting platforms.

A study commissioned by the ANJL and shared with BNL Data found that 45% of social welfare beneficiaries intend to continue gambling through unregulated or illegal channels once the prohibition takes full effect. These findings have raised concerns that the ban could drive players toward black market operators, where there are no consumer safeguards, no tax contributions, and an increased risk of fraud and exploitation.

 

Brazil’s government has extended by 30 days the deadline for betting operators to enforce a ban on social welfare recipients gambling — a move aimed at protecting vulnerable citizens but criticized for potentially driving players toward the black market.

 

The Future

Industry analysts share this concern. Ed Birkin, managing director of H2 Gambling Capital, told iGB that restricting legal access would likely shift demand rather than eliminate it. “Unless the government can restrict how every real is spent, they’re just going to spend it with illegal operators,” he said. Birkin noted that while the policy has “good intentions,” enforcement without adequate financial monitoring tools will be difficult, potentially undermining the government’s objectives.

Critics also argue that the ban highlights broader tensions in Brazil’s fast-evolving betting market, which has grown rapidly following legalization in 2018 but remains under complex regulatory development. As policymakers balance consumer protection with market growth, the welfare betting ban has become a flashpoint in Brazil’s broader debate over gambling regulation, social responsibility, and economic inclusion.