Brazil’s Bolsa Família Betting Ban Faces Civil Rights Concerns
A proposed ban on using funds from Brazil’s Bolsa Família welfare program for gambling is raising concerns about potential infringements on civil rights, according to legal experts.
In April, the head of the Secretariat of Prizes and Betting (SPA), confirmed plans to prohibit the use of funds from programs like Bolsa Família, which serves approximately 50 million Brazilians, for gambling activities.
The measure is expected to undergo legal review, with the SPA anticipated to issue an ordinance to formally implement the ban.
However, Luiz Felipe Maia, a founding partner at Maia Yoshiyasu Advogados, cautions that the prohibition could infringe upon the rights of Brazilian citizens.
“Ultimately, this is a matter of civil rights, because what we’re saying is, ‘Okay, if I’m in a situation where I need welfare, I can’t decide where I’m going to spend my money, so I have limited freedom.'”
“Either you give them the voucher and say, ‘OK, these vouchers are for food and you can only use them for food,’ or you give them money and allow them to decide what they’re going to do with that money.”
Why is Gambling Different from Alcohol and Cigarettes?
Gambling was included in tax reform proposals earlier this year in Brazil, as the sector anticipates facing a consumption tax, described by some as a “sin tax,” in the future.
While these proposals have been shelved, at least for now, Felipe Maia believes that prohibiting gambling with Bolsa Família funds risks damaging the perception of gaming, especially when the same measures are not applied to similarly addictive activities like smoking and drinking.
“I think this welfare issue, I’ve never seen anyone arguing against someone who received social benefits buying beer or cigarettes,” Felipe Maia added. “So, what’s the difference?”
“I understand that it’s not the intention of these benefits, and I think it’s wrong that they’re spending it on gambling, but I think it’s wrong that they’re spending it on beer or cigarettes, and if you take into account that gambling is entertainment, maybe you shouldn’t spend it on movies or Netflix either.”
Could the Bolsa Família Betting Ban Benefit the Illegal Market?
In September of last year, the Central Bank of Brazil revealed that approximately one-fifth of the funds it issued through Bolsa Família had been used for online bets.
An industry expert believes that while the ban on gambling with Bolsa Família funds is well-intentioned, it also risks driving players to the black market, where there are fewer player protections.
“There may be those who say, frankly, that you should spend money on what you want,” said the expert. “But if you received benefits for a certain reason, then that’s the question.”
“But this idea that they can stop them from gambling; unless they can actually restrict almost everything they can spend it on (and say) you can’t spend it with a legal betting operator, they’re just going to spend it with the illegal ones.”
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