STF Prohibits Use of Social Benefits in Betting and Imposes Restrictions on Advertising for Minors

STF Minister Luiz Fux ordered the federal government to prevent beneficiaries of social programs from using Bolsa Família and BPC funds for sports betting, commonly known as “bets.” The decision was published on Wednesday (11/13). The magistrate also mandated the immediate implementation of measures prohibiting advertisements targeting children and adolescents.

The decision followed a public hearing on the impact of sports betting sites held by the STF. Among the information presented were data from the Central Bank, requested by Senator Omar Aziz (PSD-AM). According to the technical report, Bolsa Família beneficiaries spent R$ 3 billion on betting through Pix in August. Among the 20 million beneficiaries, 5 million placed bets in October.

The expanding betting sector in Brazil has had a significant impact on the economy, public health, and social behavior, particularly among the most vulnerable populations. According to the National Confederation of Commerce of Goods, Services, and Tourism (CNC), the popularization of betting has led to increasing indebtedness among Brazilian families, which in turn negatively affects commerce and the national economy. For the CNC, the impact of betting on the most vulnerable classes is direct and undeniable: families dependent on social benefits end up using part of these resources for betting, which leads to a cycle of debt and reduced spending on essential goods.

By proposing the unconstitutionality of the Betting Law (Law 14.790/2023), the CNC seeks to highlight the potentially destructive impact of this practice, which also directly affects users' mental health, increasing cases of betting addiction and impacting family budgets. Furthermore, the CNC points out that the indiscriminate use of online betting raises the risk of money laundering and creates a favorable environment for illegal activities.

For the National Association of Games and Lotteries (ANJL), however, declaring the laws authorizing betting unconstitutional would negatively impact the country. According to the association, a prohibition could “leave the door open for unregulated platforms operating outside government oversight, harming both consumers and tax revenues and job creation.” The ANJL believes Brazil should advance regulation to avoid retreating in the face of an illegal betting economy.

While sectors like the CNC and public health advocates express concerns, betting market associations argue that full regulation is the best path to a safe and transparent betting environment. The Brazilian Institute of Responsible Gaming (IBJR), representing 75% of the online sports betting market in Brazil, defends that comprehensive regulation, scheduled to come into force in January 2025, is essential to ensure consumer protection and keep the sector within the bounds of legality.

For IBJR, regulation should act as a filter to differentiate responsible companies from clandestine operators, creating a safe environment where activities are monitored and protected by the state. The institution points out that Brazil could follow the example of countries like the United States, the United Kingdom, and Australia, where the betting market is regulated and provides legal protection for vulnerable groups, such as children and low-income individuals.

According to IBJR, the lack of regulation only empowers clandestine platforms, which, without state intervention, operate without control, exposing players to risky practices and leaving the sector susceptible to money laundering and other irregularities.

In the public hearing held by the STF, several experts highlighted the risks of betting for the mental health and budgets of Brazilian families, particularly those relying on social assistance. Minister Fux, at the close of the hearing, emphasized that the lack of regulation was a common theme across testimonies, reinforcing the need for stricter guidelines for the sector.

“One thing was consistent in all the statements: the issue of lack of regulation,” Fux said. He noted that, while the Ministry of Finance has issued regulations to control the market, they have yet to take effect, which prolongs consumer exposure to an unregulated market. The minister indicated he would review the effectiveness of these regulations to ensure prompt implementation, promoting a safer environment for players and their families.

Minister Fux’s decision represents an important step in seeking effective and protective regulation of the betting market in Brazil. By prohibiting the use of social benefits in betting and accelerating advertising restrictions for minors, the STF acknowledges the risks this activity poses, particularly for the most vulnerable groups. This move aims to balance the right to entertainment with social responsibility and the protection of family finances.

For the betting market, the STF’s decision highlights the importance of moving forward with clear, comprehensive, and protective regulation, distinguishing responsible operators from those operating illegally. Regulation is seen as a way to create an environment where the sector can grow sustainably, respect the law, and contribute to the economy without compromising social welfare.

The decision reinforces the role of the state in protecting citizens and underscores the need for active and effective oversight of a rapidly growing sector that presents significant risks.