Stake, the online betting platform, has received a partial injunction from the Federal Court of São Paulo, granting it permission to operate in Brazil until October 25. This decision, issued by Federal Judge Cristiane Farias Rodrigues dos Santos from the 9th Federal Civil Court, allows Stake to continue its operations after a recent prohibition on online gambling was imposed by the Brazilian government.
The case was brought forth by the law firm Bichara e Motta, which sought to suspend Provisional Measure 1.394. They requested that Stake be permitted to operate until its operator license expires on December 31, 2029. The judge’s ruling partially addresses this request, permitting operations but only until October 25. Moreover, the ruling includes an order to unblock Stake's website, ensuring the platform remains accessible to users.
This ruling means that government authorities cannot consider Stake's authorization to operate terminated, thereby lifting the ban on the site. The government had created a dedicated page on the gov.br website, aimed at informing bettors about the cessation of the betting process, which is now effectively muted by this court ruling.
The partial injunction comes in the wake of President Luiz Inácio Lula da Silva's decision in late September to impose a ban on online gambling through a provisional measure. In response to the restrictions, two significant gambling trade associations in Brazil appealed to the Supreme Federal Court, seeking to overturn the ban, although a date for the court’s ruling remains undetermined.
The court’s decision reflects the timeline established in Lula's provisional measure, which specifies the date for the expiration of operators' licenses. Judge Farias indicated that if the authorization had been completely invalid from the moment of the provisional measure's publication, there would have been no need for the measure to designate a specific termination date. She emphasized that the administration cannot pre-emptively enforce termination effects before the timeline outlined in the measure.
The Federal Court directed that while Stake may continue operating, it must comply with twelve stringent conditions. These include restrictions on betting by individuals legally barred from participation, prohibitions on using funds from government social programs for gambling, and maintaining identification processes for bettors. Additionally, the court has prohibited advertising aimed at minors, the launch of new promotional campaigns, and emphasized the importance of user withdrawals and financial transparency.
Bichara e Motta stated that this ruling marks a significant development for fixed-odds betting operations in Brazil. They expressed that this represents the first favorable decision for a fixed-odds betting operator within the ongoing legal discussions surrounding Provisional Measure No. 1,394/2026, while noting that a full review of the request to continue operations until the original license expiration remains pending.
