Bolsa Família betting ban a civil rights issue, Brazil lawyer says
In April Regis Dudena, leader of the Secretariat of Prizes and Bets (SPA), confirmed a ban would be placed on betting using social welfare proceeds from programmes such as Bolsa Família, which assists around 50 million people in Brazil.
It is expected that the measure will face legal assessment, with the SPA publishing an ordinance to formally introduce the prohibition.
However Luiz Felipe Maia, founding partner of Brazilian law firm Maia Yoshiyasu Advogados, warns the ban could infringe upon the rights of Brazilians.
Felipe Maia tells iGB: “At the end of the day it becomes a civil rights issue, because what we’re saying is ‘Okay, if I am in a situation where I need welfare, I cannot decide where I’m going to spend my money, so I have limited freedom’.
“Either you give them stamps and say, ‘Okay, these stamps are for food and you can only use those for food’, or you’re giving them money and you’re allowing them to decide what they’re going to do with that money.”
Why is betting different from alcohol and cigarettes?
Betting was included in tax reform proposals earlier this year in Brazil, with the sector expecting to face a consumption tax, described by some as a “sin tax”, in the future.
While those proposals were scrapped for now at least, Felipe Maia believes the ban on betting with Bolsa Família risks harming the perception of gambling, especially when the same measures aren’t placed upon similarly addictive activities such as smoking cigarettes and drinking alcohol.
“I think this welfare issue for me, I’ve never seen anyone arguing against someone that received welfare benefits buying beer or cigarettes,” Felipe Maia added. “So what’s the difference?
“I understand that’s not the intention of those benefits, and I think it’s wrong that they are spending this with gaming, but I think it’s wrong that they are spending this on beer, or on cigarettes, and if you take into account that gaming is entertainment, maybe you shouldn’t be spending this on movies or Netflix as well.”
Bolsa Família ban could drive the illegal market
In September last year, the Central Bank of Brazil revealed around a fifth of the funds it issued through Bolsa Família had been used for online gambling.
Ed Birkin, managing director of H2 Gambling Capital, believes that while the ban on betting with Bolsa Família is well intentioned, it also risks driving players towards the black market where there are fewer player protections.
“There may be some who say, frankly, you should spend money on what you want,” Birkin said. “But if you’ve been given benefits for a certain reason, then that’s it.
“But this idea that they can stop them betting; unless they’re able to really go down to restricting almost what they can spend it on [and say] you cannot spend it with a legal betting operator, they’re just spending with the illegal ones.”