The new regulatory body created by the government will be responsible for ensuring that the resources from the Bolsa Família benefit are allocated to online gaming.
Brazil.- The Ministry of Development and Social Assistance, Family and Fight Against Hunger (MDS) announced the creation of a Working Group to monitor the use of the social assistance card resources Bolsa Família in online betting.
A recent survey by the Central Bank revealed that Bolsa Família beneficiaries spent more than R$ 3.000m (USD 550m) on online betting in August. This use of resources goes against the purpose of the program, which is to ensure food security and meet the basic needs of families in vulnerable situations. Indeed, the Brazilian president himself, Lula da Silva, urged his officials to reverse this situation and is considering announcing a package of measures himself for this purpose.
The Working Group will work in partnership with the Federal Network of Bolsa Família Inspection and Single Registry. The goal is to present a proposal to restrict the misuse of resources. In addition, the Ministry of Finance, the Ministry of Health, and the Civil House will also participate in this action in an integrated manner.
In a statement, the MDS reiterated that social income transfer programs were created with the purpose of mobility and social assistance. “The priority will always be to combat hunger and promote the dignity of those who need it most,” highlighted the ministry.
“The focus of the MDS remains firm in ensuring that Bolsa Família continues to be an effective tool to combat poverty and food insecurity,” adds the letter.
According to the technical analysis by the Central Bank, about 5 million Bolsa Família beneficiaries, out of a total of approximately 20 million, made bets through Pix.
See also: Online gaming in Brazil: Lula da Silva warned of the need to have measures to prevent the indebtedness of the poorest sectors
The average expenditure was R$ 100 (USD 18), of the 5 million bettors, 70 percent are heads of households and allocated, just in August, R$ 2.000m (USD 366m) to online betting, which represents 67 percent of the total R$ 3.000m. The report includes both bets on sports events and online casino games.
