The Federal Court of São Paulo has issued a partial injunction allowing the betting platform Stake to continue its operations in Brazil until October 25. Judge Cristiane Farias Rodrigues dos Santos from the 9th Federal Civil Court signed the ruling.
The lawsuit, initiated by the law firm Bichara e Motta, sought to suspend Provisional Measure 1.394, which imposed new restrictions on online gambling, and requested that Stake's operations should be permitted through December 31, 2029. While the judge granted the request temporarily, she limited Stake's operations to the set date.
This ruling also means that authorities must refrain from considering Stake's authorization terminated, effectively unblocking the platform's website and allowing it to function normally. It also halts access to the government site aimed at informing bettors about changes in the betting landscape.
This partial injunction follows a recent decision by Brazilian President Luiz Inácio Lula da Silva, who banned online gambling through a provisional measure late last month. In response, two major gambling trade organizations in Brazil had appealed to the Supreme Federal Court to challenge the ban, but it remains uncertain when a ruling from the court will be issued.
The deadline of October 25 is significant as it aligns with the provisional measure's stipulated timeframe for licenses to lapse. Judge 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 administration cannot fully preempt termination effects before the measure's designated timeline.
Conditions for Stake's ongoing operation have been set by the court, which include a prohibition on gambling for individuals barred by law, restricting bets with funds from government aid programs, and maintaining mechanisms for bettor identification. Additionally, advertising aimed at minors has been banned, as well as any initiatives to enlarge the user base without regulatory approval. Stake must also ensure sufficient funds to cover outstanding payouts, keep financial records, and avoid operating through unauthorized domains or facilitating clandestine operations that misuse its name.
Bichara e Motta highlighted the ruling's significance, 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."
