A partial injunction has been granted by the Federal Court of São Paulo, allowing the online betting platform Stake to resume its operations in Brazil until October 25. This ruling was made by Federal Judge Cristiane Farias Rodrigues dos Santos of the 9th Federal Civil Court of São Paulo.
The injunction stemmed from a lawsuit filed by the law firm Bichara e Motta, which challenged the legality of Provisional Measure 1.394, seeking both the suspension of the measure and the ability for Stake to operate until the expiration of its operator license on December 31, 2029.
While the judge authorized Stake’s activities to continue until October 25, they ordered that the platform's website be unblocked for operations. This decision halts the authorities from considering Stake's authorization to operate as terminated, thus maintaining access to its services and protecting it from removal from government resources designed for informing bettors about the gambling process.
This injunction follows Brazilian President Luiz Inácio Lula da Silva's ban on online gambling enacted through a provisional measure issued in late September. The situation has drawn attention from two principal gambling trade organizations in Brazil, which urged the Supreme Federal Court to challenge Lula's ban; however, a ruling timeline remains undetermined.
The injunction is aligned with the provisional measure’s stipulations regarding the expiration date of operational licenses. The judge explained that if the authorization had been invalid from the moment the provisional measure was published, there would have been no need to set a later termination date. Cristiane Farias asserted that the government cannot preemptively enforce termination effects before the timeline indicated in the law.
Conditions accompany Stake's operational resumption, including:
– A ban on betting by those legally prohibited from gambling;
– A prohibition on using funds from social programs for betting;
– Requirements to maintain bettor identification mechanisms;
– A restriction on advertising to minors;
– An outright ban on new promotional campaigns;
– The necessity for bettors to retain the ability to withdraw funds;
– Assurance of sufficient funds to cover outstanding balances;
– Preservation of financial and transaction records;
– Ongoing reporting to regulatory bodies;
– Prohibition against operating on unauthorized domains;
– Prevention of misuse of the Stake brand by clandestine operators;
– Implementation of measures against fraud and trademark infringement.
Bichara e Motta commented on the ruling’s significance for the fixed-odds betting sector, noting it as the first favorable decision for such operators amid ongoing legal disputes prompted by Provisional Measure No. 1,394/2026. They indicated that while the authorization to continue operations until the original expiration is in play, it remains subject to further legal merit evaluation.
