A Federal Court in São Paulo has issued a partial injunction allowing the betting platform Stake to continue its operations in Brazil until 25 October. This ruling was made by Federal Judge Cristiane Farias Rodrigues dos Santos in the 9th Federal Civil Court.
The lawsuit, brought forth by the law firm Bichara e Motta, sought to suspend Provisional Measure 1.394 and enable Stake to operate until its operator license expires on 31 December 2029. The judge granted part of the request, permitting Stake to resume operations and ordering the unblocking of its website.
The ruling indicates that authorities should not consider Stake’s authorization to operate as terminated, thus lifting the ban on the company’s platform. This also revokes the blocking of access to the government website created to inform bettors of the end of online gaming.
This legal decision arrives in the wake of President Luiz Inácio Lula da Silva's recent prohibition of online gambling, implemented in late September through a provisional measure. In response to Lula’s ban, two prominent gambling trade associations in Brazil have urged the Supreme Federal Court to reverse the decision; however, a timeline for the court's ruling remains uncertain.
The judge's decision aligns with the provisional measure's set expiration date for operator licenses. Judge Farias noted, "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 emphasized that the administration cannot preemptively enforce termination before the designated timeframe established in the measure.
While Stake is permitted to operate temporarily, the Federal Court imposed 12 specific conditions to ensure compliance, including:
– Prohibiting betting by individuals excluded by law;
– Preventing the use of funds from social programs for gambling;
– Mandating the maintenance of bettor identification methods;
– Banning advertisements aimed at minors;
– Prohibiting new promotional initiatives aimed at expanding the user base;
– Ensuring that bettors can withdraw their balances;
– Requiring sufficient funds to cover outstanding balances;
– Preserving necessary registration, financial, and transactional records;
– Continuing the transmission of required reports to regulatory authorities;
– Banning operations through unauthorized domains;
– Preventing the misuse of the Stake brand by unauthorized operators;
– Maintaining measures against fraud and trademark misuse.
The law firm Bichara e Motta acknowledged the significance of this ruling for fixed-odds betting in Brazil, stating, "This is the first favorable decision for a fixed-odds betting operator in Brazil regarding Provisional Measure No. 1.394/2026. The request to continue operations until the original expiration of the authorization remains subject to merit review."
