Brazil’s Federal Court of Accounts (TCU) has partially revised its position on the use of social benefit recipients’ data in betting activities, clarifying the responsibilities of the Ministry of Development and Social Assistance (MDS) while maintaining oversight obligations.
The court accepted a request for re-examination filed by the Government, concluding that the investigation of potential criminal conduct falls outside the remit of the MDS.
The ruling narrows the scope of a previous determination that had required the ministry to take a more direct role in probing alleged misuse of taxpayer identification numbers (CPFs) linked to Bolsa Família beneficiaries.
Bolsa Família (Family Allowance) is a major federal conditional cash transfer program in Brazil designed to combat poverty, hunger and inequality, originally launched in 2003 by President Lula da Silva.
Reporting judge Augusto Nardes stated that such cases may involve criminal offenses and therefore should be handled by constitutionally mandated investigative authorities. As a result, the TCU adjusted its guidance to avoid assigning the ministry responsibilities related to criminal prosecution.
The case relates to concerns that CPFs of social benefit recipients may have been used, potentially without consent, to access betting platforms.
Brazil’s betting framework already prohibits beneficiaries of certain social programs from participating in online betting. The rule, introduced by the Secretariat of Prizes and Betting (SPA), requires operators to cross-check user data against federal databases during registration and at regular intervals.
Accounts identified as belonging to beneficiaries must be blocked, with a short window allowed for withdrawals.
Industry data suggests up to 30% of bettors may be social benefit recipients, with many indicating they could migrate to unlicensed platforms if restricted
