Brazil Proposes Measures to Curb Gambling Abuse

Brazil's government is taking significant steps to address the rising concern over online gambling, particularly the misuse of social benefit payments like Bolsa Familia. A recent central bank report revealed that 5 million beneficiaries sent 3 billion reais to online gambling companies in August, representing nearly 20% of the program's monthly budget. The Social Development Ministry is proposing a zero limit on gambling expenses from these benefits and implementing control mechanisms to ensure funds are used for essential needs. Additionally, the Finance Ministry anticipates generating up to 3.4 billion reais this year from regulating online gambling, while also promoting responsible gambling initiatives. The government plans to ban credit card usage for online betting starting October, although this may not sufficiently curb the issue, as a significant majority of transactions occur through other payment methods like Pix. Overall, the government is facing pressure to react swiftly to curb the rapid rise in online betting expenditures, which could exceed 240 billion reais annually if not regulated effectively.