The Federal Court of São Paulo has issued a partial injunction permitting betting platform Stake to continue its operations in Brazil until October 25. Federal Judge Cristiane Farias Rodrigues dos Santos of the 9th Federal Civil Court signed off on the decision, which comes as a response to a lawsuit filed by the law firm Bichara e Motta. The lawsuit sought to suspend Provisional Measure 1.394 and allow Stake to operate until December 31, 2029, the expiration date of its operator license.
While the judge granted a partial request, she specified that operations must cease by October 25. The ruling included an order to unblock Stake’s website, enabling the company to maintain its services. Consequently, authorities are restrained from considering Stake’s authorization as terminated, meaning the prior blocking of the company’s platform is suspended. This also stops access to the government website designed to guide bettors on the end of the betting process.
This ruling was issued following President Luiz Inácio Lula da Silva's decision to ban online gambling through a provisional measure enacted in late September. Before the court's decision, two major gambling trade bodies in Brazil appealed to the Supreme Federal Court to reverse Lula's ban, but it remains unclear when a decision will be made.
The October 25 deadline aligns with the termination date specified in the provisional measure. Judge Farias remarked that if the authorization were legally void from the moment the provisional measure was published, there would be no explicit need to set a later date for expiration. She asserted that the administration "cannot fully anticipate the termination effects to a date prior to the time frame foreseen in the measure itself."
The Federal Court did allow Stake to resume its operations, but under twelve strict conditions, which include:
1. No betting by individuals prohibited by law or regulatory measures.
2. Prohibition on using funds from social programs for gambling.
3. Requirement to maintain tools for identifying bettors.
4. Ban on marketing aimed at children and teenagers.
5. No new promotional campaigns or initiatives for user expansion.
6. Bettors must retain the option to withdraw their balances.
7. Stake must preserve enough funds to cover all outstanding balances.
8. Maintenance of records regarding registrations, finances, and transactions.
9. Continuing to transmit reports required by regulatory authorities.
10. Operation only through authorized domains.
11. Ensure the ruling does not validate clandestine operators or misuse of the Stake brand.
12. Upholding anti-fraud, anti-counterfeiting measures, and actions against unauthorized operators.
Bichara e Motta emphasized the significance of the ruling for the fixed-odds betting sector in Brazil. They remarked, "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."
