Brazil plans action to stop social benefits going to gambling

Brazil’s Social Development Ministry will soon propose new measures to stop social benefit payments from being used for online gambling. This follows a report showing that 5 million recipients of Bolsa Familia, a cash transfer program, spent 3 billion reais on online betting in August. Bolsa Familia, which provides aid to 21 million families for essentials like food, saw nearly 20% of its monthly budget diverted to gambling, raising concerns about the misuse of these funds.

Social Development Minister Wellington Dias proposed potential solutions, such as banning the use of social benefits for gambling and implementing control mechanisms tied to tax ID numbers. These measures will be submitted to President Luiz Inacio Lula da Silva for approval. Dias stressed that the misuse of Bolsa Familia funds for betting undermines the program’s core goal of supporting low-income families with necessities.

Central Bank Chief Roberto Campos Neto emphasised that the bank’s report was not meant to criticise Bolsa Familia but to serve as a warning. He highlighted that the rapid rise of online gambling among lower-income households could jeopardise their financial stability.