Stake, the online betting platform, has received a temporary but significant victory in its legal battle in Brazil. A São Paulo Federal Court granted an injunction allowing the company to continue its operations until October 25. Federal Judge Cristiane Farias Rodrigues dos Santos rendered the decision from the 9th Federal Civil Court of São Paulo.
This ruling comes after Stake's legal team, represented by the law firm Bichara e Motta, filed a lawsuit challenging Provisional Measure 1.394, which had imposed a ban on online gambling. Although the lawsuit sought to keep Stake operational until December 31, 2029, the court allowed a more limited extension until October 25. The injunction also mandates that Stake’s website be accessible again, enabling the platform to resume its services.
As part of the ruling, authorities are barred from declaring Stake's operational license terminated. Additionally, the judge has suspended any moves to block access to the government website created to help bettors navigate the new online gambling regulations.
This development comes on the heels of a ban on online gambling imposed by President Luiz Inácio Lula da Silva in late September through a provisional measure. In response to the ban, two prominent gambling trade organizations in Brazil have appealed to the Supreme Federal Court, seeking to overturn the president’s decision, although a timeline for a ruling remains unclear.
The expiration date of October 25 aligns with the timeline established in the provisional measure. 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 emphasized that the administration cannot pre-emptively enforce termination before the date outlined in the measure itself.
Despite the temporary victory, Stake must adhere to 12 operational conditions imposed by the court. These include prohibiting betting by individuals restricted by law or government programs, ensuring funds are available to cover withdrawals, and preventing advertising aimed at minors. Furthermore, the platform is tasked with maintaining robust identification mechanisms for bettors and is strictly forbidden from operating through unauthorized domains or using the court approval to benefit clandestine operators.
Bichara e Motta expressed the significance of this ruling for Brazil's fixed-odds betting sector. 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.” They added that the request to continue operations until the original expiration of the authorization is still subject to further merit review.
