Brazil Extends Deadline for Betting Ban Compliance Among Social Welfare Recipients

The Secretariat of Prizes and Bets (SPA) has announced an extension to the compliance deadline for betting operators in Brazil regarding the recently introduced ban on betting among social welfare beneficiaries.

Operators will now have an additional 30 days to fully adhere to the new restrictions, which were formally announced in late September.

On 30 September, the SPA published Normative Ordinance No 2,217/2025 and Normative Instruction No 22, which completely prohibit beneficiaries of government social welfare programmes—such as Bolsa Família—from taking part in fixed-odds betting. The move followed a November 2024 ruling by the Supreme Federal Court, which upheld an emergency measure banning the use of social welfare funds for gambling activities.

Following the publication of the regulations, operators were initially given 30 days to comply by identifying and closing the betting accounts of individuals receiving assistance from Bolsa Família and the Continuous Benefit Payment programmes. However, as the original deadline approached its expiry, the SPA decided to extend the timeframe, though no explanation was provided for the extension.

SPA chief Regis Dudena defended the ban, expressing confidence that it would protect vulnerable citizens from excessive gambling. Dudena stated that the prohibition aimed to ensure that social welfare beneficiaries would not “bet beyond their means.”

Nevertheless, the move has sparked strong criticism within Brazil’s gaming industry, with stakeholders warning that the ban could drive betting activity underground. The National Association of Games and Lotteries (ANJL) has been among the most vocal opponents, arguing that the measure contradicts the Supreme Court’s earlier ruling, which only prohibited gambling with welfare funds rather than banning beneficiaries from betting entirely.

According to an ANJL-commissioned study shared with BNL Data, 45% of social welfare recipients indicated they intend to turn to the black market for gambling once the ban comes into force.

Industry analyst Ed Birkin, managing director of H2 Gambling Capital, also cautioned that such a shift was likely. “There may be some who say, frankly, you should spend money on what you want,” Birkin. “But if you’ve been given benefits for a certain reason, then that’s it. But this idea that they can stop them betting; unless they’re able to really go down to restricting almost what they can spend it on [and say] you cannot spend it with a legal betting operator, they’re just spending with the illegal ones.”

The ongoing debate underscores the tension between social protection goals and the risk of expanding the unregulated gambling market, as Brazil continues to navigate the evolving landscape of its betting regulations. 

By fLEXI tEAM