The Federal Court of São Paulo has issued a partial injunction permitting the online betting platform Stake to resume operations in Brazil until 25 October.
Federal Judge Cristiane Farias Rodrigues dos Santos of the 9th Federal Civil Court signed the decision. A lawsuit brought forth by the law firm Bichara e Motta sought to suspend Provisional Measure 1.394, which banned online gambling, and requested that Stake be allowed to operate until its operator license expires on 31 December 2029.
While the judge granted the request in part, she authorized Stake to operate only until 25 October and mandated that the company’s website be unblocked to facilitate its business activities. This ruling means authorities must not consider Stake's authorization as terminated, which effectively halts the blocking of its platform and also restricts access to the government website created to inform bettors about the cessation of the betting process.
This partial injunction follows a move by Brazil's President Luiz Inácio Lula da Silva, who imposed a ban on online gambling via a provisional measure in late September. Before Stake's court ruling, two of the country's major gambling trade organizations urged the Supreme Federal Court to overturn the president's ban, though a ruling from the court remains pending.
The judge noted that the expiration date outlined in the provisional measure indicates that if authorization were null from the release of the measure, there would be no need for a later termination date. Judge Farias emphasized that the government cannot preemptively enact the termination effects before the specified timeframe in the measure.
Conditions have been set for Stake to operate, which include:
– Prohibition on betting by individuals legally barred from gambling, along with those involved in government programs or regulatory interventions.
– Ban on gambling with funds from social assistance programs.
– Requirement to maintain systems for verifying bettor identities.
– Restriction against advertising targeted at minors.
– A ban on launching new promotional campaigns aimed at expanding the user base.
– Allow bettors the option to withdraw their account balance.
– Requirement to retain sufficient funds to cover any outstanding balances.
– Compliance with maintaining records of registrations, transactions, and financial activities.
– Obligation to transmit reports to regulatory authorities as required.
– If they operate, using only authorized domains.
– Prohibition against using the court's ruling to endorse unregulated operators or unauthorized third parties that misuse the Stake brand.
– Maintenance of measures against fraud, counterfeiting, trademark infringements, and actions taken by unauthorized entities.
Bichara e Motta highlighted the significance of the ruling for the fixed-odds betting industry in Brazil. They stated, "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."
