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Brazil’s Secretariat of Prizes and Bets (SPA) has given licensed betting operators more time to comply with a recently introduced rule banning individuals who receive social welfare benefits from placing bets. The regulator extended the original deadline by 30 days, allowing operators additional time to close accounts belonging to beneficiaries of government support programs.
Good to Know
Under Normative Ordinance No 2,217/2025 and Normative Instruction No 22, published on 30 September, the SPA prohibited anyone receiving social welfare benefits from betting on fixed-odds markets. Operators initially had 30 days to identify and deactivate accounts belonging to those users.
As the original compliance period came to an end, the SPA announced a 30-day extension. The agency did not specify the reasons for the delay or provide new enforcement guidance, leaving operators waiting for clarification on how to manage the process.
The measure follows a November 2024 Supreme Federal Court ruling that upheld an emergency order banning gambling using social welfare funds. The ruling was intended to protect vulnerable citizens from betting beyond their financial means.
SPA chief Regis Dudena supported the decision, saying the ban was designed to prevent misuse of government aid. “The prohibition will help ensure vulnerable Brazilians do not bet beyond their means,” he said after the rule’s introduction.
Brazil’s betting sector has not welcomed the change. The National Association of Games and Lotteries (ANJL) criticized the measure, noting it contradicted the Supreme Court’s earlier interpretation. The Court’s initial ruling allowed welfare recipients to gamble as long as they did not use welfare funds to do so, while the new rule imposes a full ban.
An ANJL-commissioned study shared with BNL Data revealed that 45% of social welfare beneficiaries plan to migrate to unregulated betting platforms once the ban takes effect. The association argued that the rule could drive players toward offshore and illegal markets that lack responsible gaming protections.
Individuals receiving benefits from Brazil’s Bolsa Família or Continuous Benefit Payment programs are barred from participating in fixed-odds betting.
Operators now have an additional 30 days to close the accounts of social welfare recipients.
The SPA did not provide a specific reason for the extension.
Industry experts warn the ban could push bettors toward illegal offshore platforms, reducing consumer protection and tax revenue.
The Court upheld a ban on using welfare funds for gambling but did not initially prohibit beneficiaries from betting altogether.