Stake has received a partial legal victory, with the Federal Court of São Paulo granting the online betting platform permission to continue operating in Brazil until 25 October. This decision was issued by Federal Judge Cristiane Farias Rodrigues dos Santos, serving in the 9th Federal Civil Court.
The case was initiated by the law firm Bichara e Motta, which sought to suspend Provisional Measure 1.394, effectively requesting that Stake be allowed to operate until its operator license expires on 31 December 2029. Although the judge did not grant the full duration requested, she did approve operations until the specified date of 25 October and ordered the unblocking of Stake's website to facilitate its business.
As a result of this ruling, Brazilian authorities are required to regard Stake's authorization as active, preventing any termination of its licenses while also halting the blocking of the company’s platform. This ruling also restricts access to a government website designed to inform bettors about the cessation of the betting process.
This injunction follows the recent prohibition of online gambling by Brazil's President Luiz Inácio Lula da Silva, enacted in late September through a provisional measure. Before this ruling, two prominent gambling trade organizations in Brazil urged the Supreme Federal Court to challenge Lula’s gambling ban, though no ruling has been announced yet from the court.
The impending 25 October date is pivotal, as it aligns with the expiration set by the provisional measure regarding operators’ licenses. Judge Cristiane Farias stated, "If the authorization were legally nonexistent from the publication of the provisional measure, there would be no reason for the rule to establish a specific later date for its termination." She further emphasized that the government cannot anticipate the termination’s effects before the timeframe outlined in the law.
While permitting Stake to resume operations under specific conditions, the court imposed 12 stipulations. These include prohibitions against betting by individuals banned through legal or regulatory means, gambling with funds from social programs, advertising to minors, and launching new promotional campaigns aimed at expanding the user base. Additionally, Stake must maintain mechanisms for identifying bettors, enforce measures against fraud, and ensure the preservation of critical financial records and user balances.
Bichara e Motta reflected on the ruling’s significance for the fixed-odds betting industry, stating, "This is the first favorable decision for a fixed-odds betting operator in Brazil in the legal dispute regarding the effects of Provisional Measure No. 1,394/2026. The request to continue operations until the original expiration of the authorization remains subject to merit review."
