Brazil Welfare Recipients Spent 27% of Their Benefits on Betting

According to a new report by Brazil’s Federal Court of Accounts (TCU), welfare recipients spent the equivalent of 27% of their January 2025 benefits on betting. The findings come after the government introduced a ban on licensed sports betting for social-aid beneficiaries, iGaming Business reports.

The audit revealed that participants in the Bolsa Família program wagered 3.7 billion reais (≈ US $685.6 million) on online platforms in January — more than a quarter of all funds distributed through the scheme that month.

The study was launched to assess the scope of the issue after the government officially prohibited gambling for benefit recipients in late September 2025. The restriction, described as temporary, is expected to remain in place at least until the end of the current month, Gambling Park notes.

Under the decree, Bolsa Família recipients are barred from placing bets with licensed fixed-odds operators in Brazil. Betting companies must cross-check their customer databases with the federal welfare registry, block matching accounts, and refund any remaining balances. Such checks must be carried out every 15 days.

Regulators have been given 90 days to develop an action plan to prevent misuse of public funds, monitor suspicious transactions, and investigate possible cases of stolen identities used for illegal betting.

The measure has drawn mixed reactions. Some legal experts, such as attorney Luís Felipe Maia, argue the ban infringes on civil liberties: “Either the state gives people money and lets them decide how to spend it, or it issues food vouchers instead.”

Industry groups have also voiced concern. The National Association of Games and Lotteries (ANJL) warned that up to 45% of blocked players may turn to the unregulated black-market sector, where the risks are even higher.