Brazil's Federal Audit Court (TCU) has revealed that recipients of the Bolsa Família social welfare programme spent around BR3.7bn ($647m) on online betting in January alone.
The figure represents roughly 27% of all funds distributed by the programme that month, raising concerns about the financial vulnerability of low-income families.
The audit examined data from the Ministry of Social Development (MDS), the Ministry of Finance and the Central Bank, focusing on how welfare recipients used their digital transfers and whether such spending patterns indicated systemic risks.
While the analysis covered only a single month, the TCU warned that the results underscored a broader issue of accessibility to gambling among Brazil's most economically fragile citizens.
Following the findings, the court ordered the MDS and Central Bank to prepare, within 90 days, a joint action plan to prevent irregular use of social benefits.
The measures include identifying beneficiaries with financial transactions far exceeding their declared income and investigating cases where social numbers may have been used by third parties for illegal activities, including illegal betting operations.
The revelation comes as the Government attempts to enforce stricter measures to prevent vulnerable groups from gambling.
The Secretariat of Prizes and Betting recently extended the deadline for licensed operators to block social benefits recipients from registering on betting platforms.
Industry reactions to these restrictions have been mixed, with lawmakers supporting the policy as a necessary step to curb gambling harm and strengthen the credibility of Brazil's market.
Senator Sérgio Petecão proposed a temporary 27.5% tax on betting operators to strengthen the funding of social programs
