Brazil’s National Institute of Social Security (INSS) is exploring measures to prohibit the use of social welfare benefits for sports betting. INSS President Alessandro Stefanutto revealed in an interview with Estadão that research is underway to examine how welfare funds, intended for low-income elderly and disabled individuals, are being spent in the newly regulated betting market.
The findings will be shared with the Ministry of Social Security, with plans to seek assistance from the Central Bank of Brazil (BCB) to detect and prevent misuse of funds.
Stefanutto emphasized the critical role of financial institutions in verifying transactions linked to sports betting companies, stating, “If we allow gambling, we will feed addictions.”
Concern Over Social Welfare Misuse
The issue gained prominence in September when a BCB report revealed that approximately BRL 3 billion (€500 million) from Bolsa Familia—Brazil’s flagship social aid program—had been spent on betting platforms. Bolsa Familia, established to support impoverished families in exchange for schooling and vaccinations, serves nearly 50 million individuals. The misuse of these funds has raised alarms about the economic vulnerabilities of beneficiaries.
President Luiz Inácio Lula da Silva, the program’s founder, has addressed this issue repeatedly, emphasizing the need for tighter regulations. In response, the Supreme Court of Brazil recently mandated amendments to the gambling framework, explicitly banning the use of social funds for online betting.
The Senate has appointed Commissions of Inquiry (CPIs) to analyze the economic and social risks of the burgeoning betting market. Led by Senator Soraya Thronicke, one commission is set to begin on April 30, tasked with assessing vulnerabilities and proposing regulatory improvements to safeguard social welfare funds.
