Brazil's INSS Explores Ban on Social Benefits Used for Sports Betting

Brazil’s National Institute of Social Security (INSS) is reportedly considering measures to prohibit the use of social benefits for sports betting activities. In an interview with the news outlet Estadão, INSS President Alessandro Stefanutto revealed that his organization, which oversees the distribution of welfare funds to disabled individuals and low-income seniors, is currently conducting research to investigate how these funds are utilized in light of Brazil's newly regulated betting market.

According to further reports by SBC Noticias, the INSS plans to present its findings to the Ministry of Social Security. Stefanutto aims to collaborate with the Central Bank of Brazil (BCB) to identify any potential misuse of social funds by beneficiaries for gambling activities. "The banks that operate the advance payment already have experience in verifying the CNPJ (national identification number for legal entities) of sports betting companies. If we allow gambling, we will feed addictions,” he emphasized.

Concerns about social welfare funds being diverted to gambling by vulnerable populations became prominent in Brazil in September when the BCB released a report analyzing recipients of Bolsa Familia, a financial aid program aimed at families living in poverty. This program incentivizes low-income families to ensure their children attend school and receive necessary vaccinations.

The Central Bank's report highlighted that approximately three million families benefit directly from Bolsa Familia, with around 50 million citizens impacted by the program. However, the report also raised alarms over about BRL 3 billion (€500 million) of Bolsa Familia funds being spent on betting platforms, as tracked through the government’s PIX payment system.

President Lula da Silva, who established Bolsa Familia during his first term in 2004, has expressed deep concern regarding this issue and has engaged in discussions with his ministers multiple times before the launch of the betting market. In a recent development, the Supreme Court of Brazil intervened in the weeks leading up to the market’s opening, insisting that the finalized gambling framework be amended to explicitly prohibit the use of social funds for online gambling.

Additionally, the Brazilian Senate has established specialized Commissions of Inquiry (CPIs) to assess the betting market during its initial months following launch. One such commission, chaired by Senator Soraya Thronicke, is set to begin its work on April 30, with the goal of delivering a comprehensive evaluation of the economic risks associated with online gambling, including the vulnerabilities of social welfare systems.

By fLEXI tEAM