To protect vulnerable families from financial exploitation, the Federal Court in São Paulo has issued a preliminary injunction requiring online betting platforms to clearly display notices. These are to bear information that it is illegal to use funds from government welfare programs, including Bolsa Família and the Continuous Benefit Payment , for gambling. 

Signed by Judge Gabriel Hillen Albernaz Andrade on June 13, the ruling mandates that online gambling platforms display prominent notices on their websites and advertising materials, warning against the use of social welfare benefits for bets. The platforms must implement this measure within 45 days. 

The court’s decision comes in response to a civil lawsuit filed by Educafro and the Mônica Paião Trevisan Center for the Defense of Children and Adolescents. These two organizations advocate for the protection of low-income families, arguing that insufficient regulation exposes vulnerable populations to gambling risks.

Push for Stronger Preventive Measures

The plaintiffs urge the court and the federal government to take further action in addition to the mandatory warnings. They propose the development of a mechanism preventing individuals listed in CadÚnico, the national database of low-income citizens, from using these platforms. 

To make this possible, the organizations suggest that the government share the CPF numbers of social program beneficiaries with gambling platforms. So, they can automatically block accounts of individuals receiving Bolsa Família or BPC payments. This ensures that welfare funds are not diverted for gambling purposes.

Billions Lost to Gambling

According to data from Brazil’s Central Bank, beneficiaries of federal welfare programs have transferred approximately R$3 billion (US$545 million) to online gambling operators. Bolsa Família alone supports roughly 54 million families, highlighting the scale of the issue. Frei David, Executive Director of Educafro, condemned the widespread use of welfare funds for gambling. 

Furthermore, he described the situation as unacceptable, imploring the government and private companies to act swiftly in protecting vulnerable citizens. “There has been a clear delay in the State’s response to this issue. It is expected that the companies comply with the court ruling and that the federal government urgently formulates an effective public policy. This policy must not penalize the poor, but instead protect them from financial exploitation disguised as entertainment,” Frei David said.

Next Steps for Implementation

While the court’s order is a critical first step, it remains to be seen how online betting platforms will respond and if the government will agree to share sensitive citizen data with private operators. Civil society groups continue pressing for concrete measures to prevent the misuse of social aid. They argue that vulnerable families remain at risk without proper enforcement.