Brazil: state advances bill to ban use of social benefits for online betting
Brazil’s regulated betting market, although still in its early years of official operation, is already showing signs of maturity. Public debate is now focused not only on growth, tax revenue and licensing, but also on industry sustainability, financial protection and responsible gambling.
Rio Grande do Sul, a state located in southern Brazil and one of the country’s most economically relevant regions, approved, in a committee of the Legislative Assembly of Rio Grande do Sul (ALRS), a bill that aims to prevent the use of state social benefits in online sports betting.
Although the proposal imposes new restrictions, it can also be interpreted as a sign of the maturation of Brazil’s regulated market. In more mature international markets, industry growth is usually accompanied by consumer protection mechanisms, especially for financially vulnerable groups.
In practice, this indicates that Brazil is beginning to follow a trend already seen in markets such as the United Kingdom and parts of Europe: treating online betting not only as an economic activity focused solely on the sector’s profitability, but also as a form of entertainment that requires social responsibility.
What the bill proposes
The text approved by the Committee on Security, Public Services and State Modernisation states that beneficiaries of state income transfer programmes are not permitted to use these resources on online betting platforms. The restriction includes payments made via PIX, cards, bank transfers and digital wallets.
In addition, operators would be required to develop technical mechanisms to block such transactions. In the event of non-compliance, companies could face fines of up to BRL5 million ($1.02 million), suspension of activities and even loss of operating authorisation.
The author of the proposal, state deputy Delegado Zucco (pictured above), said the measure aims to prevent resources intended for families’ basic needs from being diverted to gambling.
“In almost 30 years as a police chief, I have seen entire families destroyed by addiction. Compulsive gambling does not end with financial losses,” the lawmaker said.
The discussion comes at a time when the sector is beginning to better understand Brazilian consumer behaviour. Data released by market intelligence platform Blask shows that a large share of Brazilian online bettors belong to middle-income groups. According to the survey, 30 per cent of users have an annual income between BRL40,000 ($7,000) and BRL60,000 ($10,700), while another 25 per cent fall between BRL60,000 ($10,700) and BRL80,000 ($14,300). Lower-income brackets also account for a significant share: 10 per cent of users reported annual incomes below BRL20,000 ($3,600), and 20 per cent between BRL20,000 ($3,600) and BRL40,000 ($7,000).
Blask explains that its audience profiles are built through a multi-stage methodology that combines extensive user surveys with an artificial intelligence trained on industry knowledge, regulatory information, market dynamics, and player psychology. According to the company, the model-generated data is later validated against the original survey responses to ensure greater accuracy.
The study also helps explain the motivations of Brazilian bettors. According to the data, 71 per cent say they bet online mainly “to make money”, while 42 per cent say they bet to “enjoy the process”, and 40 per cent cite the pursuit of adrenaline. Other factors also carry significant weight, such as passing the time (35 per cent), escaping routine (30 per cent), and testing their own intuition (30 per cent).
The figures show that for many users, betting is viewed not solely as entertainment but also as a possible way to improve their financial situation. This scenario has drawn the attention of authorities and lawmakers, especially amid growing discussions about indebtedness and economic vulnerability in Brazil.
It is precisely in this context that proposals such as the one debated in Rio Grande do Sul have begun to gain momentum. The concern among some lawmakers is to prevent people in more fragile financial situations from using essential resources, such as social benefits, for online betting.
Consumer protection could strengthen the sector in the long term
Despite concerns about indebtedness and financial vulnerability, part of the industry views the strengthening of responsible gambling policies as necessary to consolidate Brazil’s regulated market. Operators licensed in Brazil are already required to comply with rules on identity verification, compliance, anti-money laundering prevention and player protection tools.
Now, the debate is advancing toward more sophisticated measures related to sustainable gambling behaviour and the prevention of financial harm. A regulated environment that demonstrates concern for consumer protection tends to gain greater credibility among regulators, investors and society itself.
Even so, the bill also raises important technical challenges. Systems such as PIX, the instant payment platform created by the Central Bank of Brazil and widely used in the country for real-time bank transfers, do not publicly disclose the exact origin of the funds used in each transaction, which may complicate the automatic implementation of the blocking measures proposed in the bill.
Even so, the case of Rio Grande do Sul shows that the Brazilian market is already entering a new regulatory stage, less focused on accelerated expansion and more on building a sustainable, reliable, long-term environment.
This article was first published in Portuguese on 12 May 2026.
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