Brazil Court urges ban on social welfare funds for betting  

To protect social welfare funds, Brazil’s Federal Court of Accounts has banned their use for gambling activities after a request from the Attorney General’s Office. In November, Brazil’s Federal Supreme Court conducted a two-day hearing and voted to uphold an emergency order issued by Minister Luis Fux, which immediately forbids the use of social welfare funds, including those from the Bolsa Família program (a cash transfer program for low-income families), for gambling. In response to the Supreme Court’s decision, the Attorney General’s Office (AGU) challenged the ban, arguing that they lack sufficient resources to differentiate these funds from other gambling money. The AGU emphasized its backing for the ban’s goal but requested a „reasonable timeframe“ for proper execution. Afterward, Court of Auditors minister Jhonathan de Jesus directed the ministries of finance, sports, and development, along with Caixa Econômica Federal bank, to promptly restore the ban and provided them with 15 days from December 15th to discuss and take action. Jhonathan de Jesus, the Court of Auditors minister, stated: The distribution of funds to gambling, which does not help in fulfilling basic needs or alleviating poverty, undermines these goals and weakens the effectiveness of social assistance policies. After a report from the Central Bank of Brazil revealed that 20% of Bolsa Família funds given out in August were spent on online betting, the Attorney General’s Office (AGU) contended that the government does not have the power to control how recipients utilize the funds once they have been handed out. To back this claim, the AGU referenced data from the National Secretariat of Citizen Income (Senarc), which revealed that merely 1% of Bolsa Família recipients use the physical card to access their benefits, whereas an overwhelming 99% obtain their funds through online bank accounts that can also accept other income sources like salaries. The Attorney General’s Office noted: It is crucial to recognize that a potential account blockage intrudes on the private domain, where individuals manage other income.