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In Brazil, a new rule came into force in October: citizens that get Bolsa Família and BPC social benefits are now prohibited from betting in online bookmakers and casinos. The law means that licensed platforms have to block accounts and not accept deposits from people that get money-related government assistance.
Government says that the goal of the law is to protect low-income families from financial risks and prevent cases when social benefits are spent on gambling rather than on food or housing.
Betting operators and social policy experts in their turn criticize the law, backing it with the thought that it’s discrimination against the poor and can only make the problem worse. A study by local analysts proves it—the thing is that almost 50% of the banned players usually intend to switch to illegal sites where there is no control and data protection. This means that the ban may, on the contrary, increase the share of the “black market” of betting in the country.
Betting companies also claim that it is difficult for them to technically implement user filtering because access to the database of benefit recipients is limited by the law on confidentiality.
The government provided operators with additional time to implement these new verification systems.
