Brazil bans welfare recipients from online betting with harsh penalties
Brazil's Ministry of Finance has introduced strict new rules for online betting operators. The measures aim to stop people receiving government benefits from gambling on licensed platforms. Operators now face heavy fines and potential closure if they fail to enforce the ban. The Secretariat of Prizes and Betting (SPF) announced the ban on beneficiaries of programmes like Bolsa Família and the Continuous Cash Benefit (BPC) using betting sites. Licensed casinos and sportsbooks must block accounts and return any deposited funds within 30 days.
Operators who ignore the rules could lose their licences or pay fines of up to R$2bn (around $374,195). The crackdown follows President Luiz Inácio Lula da Silva's warning in October 2022 that he might shut down Brazil's new iGaming sector entirely. His threat came after reports showed benefit recipients were gambling away public funds.
The government has clarified that those caught betting will not lose their benefits. However, the SPF insists operators must verify users' eligibility and prevent any further bets from restricted individuals. The 30-day compliance window is now in effect. Licensed betting firms must update their systems to block and refund affected accounts. Failure to act risks severe financial penalties or the revocation of their operating licences.
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