Brazil’s President threatens to ban sports betting if addiction issues persist
This news comes after data showed some beneficiaries of the Bolsa Familia social welfare program were spending significant amounts of their government aid on gambling.
Key Points
- Lula may ban sports betting if regulations do not effectively curb gambling addiction
- Concerns are rising over Bolsa Familia recipients spending significant portions of aid on bets
- Brazil has licensed around 200 sports betting companies, but further regulatory action is being considered
Brazilian President Luiz Inacio Lula da Silva has voiced concerns over the impact of sports betting on household incomes, particularly among low-income families.
Since the legalization of sports betting in 2018 and upcoming regulation, the activity has surged in popularity. But, Lula warned that he may ban online betting entirely if current regulatory efforts fail to address issues of gambling addiction.
Lula’s remarks came after data showed that some beneficiaries of the Bolsa Familia social welfare program were spending significant amounts of their government aid on bets.
According to Brazil’s central bank, BRL 3bn ($550m) was spent on sports bets in August alone by Bolsa Familia recipients, raising alarms about the effect on consumer spending and family finances.
Lula emphasized that while he does not aim to eliminate betting entirely, he is concerned about the potential for it to become a destructive addiction, citing examples of individuals who have lost their homes and cars due to excessive gambling.
Brazil’s Secretariat of Prizes and Bets (SPA) recently issued licenses to around 200 sports betting operators, including major industry players like Flutter Entertainment and Entain group.
New regulations mandate that licensed companies establish a local presence and prevent the use of credit cards for betting. Despite these steps, Lula’s government is still exploring additional measures, including potentially banning Bolsa Familia beneficiaries from betting.
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