On Monday, the National Institute of Social Security (INSS) formally requested the BCB's assistance in developing a strategy to block recipients of social benefits from using their funds for betting.

The critical request was initiated by INSS' president, Alessandro Stefanutto, who highlighted the need to better understand how welfare payments are being spent.

Stefanutto is currently leading an investigation into the Brazil Bets market, analyzing whether social funds are being misused or fueling gambling-related issues.

However, tracking individual transactions has proven difficult due to existing system limitations.

According to SBC Noticias Brazil and Folha de São Paulo, identifying the source of welfare deposits in recipients' bank accounts is straightforward.

However, once these funds mix with other personal finances, it becomes impossible to determine their use.

Furthermore, under current laws, funds transferred into a beneficiary's account become their personal property, leaving the government powerless to impose spending restrictions.

President Lula's administration has stated that protecting Bolsa Família funds from misuse is a core priority as Brazil's regulated gambling market expands.

The INSS has identified a few shortcomings in monitoring spending and will keep assessing current controls.

Thronicke has indicated that the commission will propose measures to limit or ban gambling for Bolsa Família beneficiaries. Findings are expected in the first half of the year.

Meanwhile, Brazil's President has reiterated the policy that operators who fail to meet the standard regulatory requirements or economic responsibilities risk being excluded from the market. Last week, SPA head Regis Dudena expressed concerns about a proposed selective tax that would target harmful industries, including gambling.