The Federal Court of São Paulo has issued a partial injunction permitting Stake, an online betting platform, to continue its operations in Brazil until October 25. This ruling, signed by Federal Judge Cristiane Farias Rodrigues dos Santos from the 9th Federal Civil Court, came after Stake's legal team filed a lawsuit challenging the suspension imposed by Provisional Measure 1.394. This measure was enacted by Brazil's President Luiz Inácio Lula da Silva in late September, which effectively banned online gambling.
The lawsuit, brought forth by the law firm Bichara e Motta, sought not only to halt the effects of the provisional measure but also to allow Stake to operate until December 31, 2029, the expiration date of its operating license. While the judge did not grant the full extension requested, she authorized Stake to function in Brazil up to the previously mentioned date. Furthermore, she mandated the unblocking of Stake's website to facilitate continuation of its services.
The court's decision also stipulates that Brazilian authorities must not treat Stake's authorization as terminated, temporarily lifting restrictions that had been placed on the platform's access. This ruling also prohibits the use of the government’s guidance website, which was designed to inform bettors about the cessation of the gambling process.
The judge clarified that if the authorization were invalid from the moment the provisional measure was published, there wouldn’t be a rationale for a specific later termination date to be established. She noted that the administration could not preemptively impose termination effects before the timeline indicated in the measure itself.
While allowing Stake to resume operations, the Federal Court did impose a strict set of twelve conditions:
1. Betting is prohibited for those barred by law or government regulations.
2. Gambling using funds from social assistance programs is prohibited.
3. Identification mechanisms for bettors must be maintained.
4. Advertising targeting children and teenagers is prohibited.
5. Launching new promotional campaigns to attract more users is not allowed.
6. Bettors must be able to withdraw their balances.
7. Sufficient funds must be preserved to cover outstanding balances.
8. Financial, registration, and transactional records must be maintained.
9. Required reporting to regulatory bodies must continue.
10. Operations through unauthorized domains are prohibited.
11. The court's decision cannot be misused to legitimize clandestine operators or any party abusing the Stake brand.
12. Measures against fraud, counterfeiting, and unauthorized operators must be upheld.
The law firm Bichara e Motta expressed optimism regarding this ruling's impact on the fixed-odds betting market. They noted, "This is the first favorable decision for a fixed-odds betting operator in Brazil concerning the legal implications of Provisional Measure No. 1,394/2026. The request for continued operations until the original expiration remains subject to merit review.", indicating the proceedings could yield further developments as the situation evolves.
