A partial injunction from the Federal Court of São Paulo has permitted Stake to resume its operations in Brazil until October 25. This ruling was issued by Federal Judge Cristiane Farias Rodrigues dos Santos from the 9th Federal Civil Court of São Paulo.
The injunction stems from a lawsuit filed by the law firm Bichara e Motta, which aimed to halt Provisional Measure 1.394 and sought permission for Stake to continue its activities until December 31, 2029, the date when its operator license is set to expire. Judge Rodrigues dos Santos partially approved this request, allowing Stake to operate until the upcoming deadline and ordering the unblocking of the company’s website to facilitate its continued service.
This court decision means that authorities cannot treat Stake’s authorization as terminated, and the prior blocking of the platform is suspended. Additionally, it inhibits access to the government’s website designed to inform bettors about the cessation of online betting.
The injunction arrives in the wake of Brazilian President Luiz Inácio Lula da Silva's recent ban on online gambling, enacted in late September through a provisional measure. Before this ruling, two major gambling trade organizations in Brazil had appealed to the Supreme Federal Court to overturn Lula's ban, but a timeline for any court decision remains uncertain.
The October 25 date aligns with the provisional measure's deadline regarding operator licenses. Judge Rodrigues dos Santos articulated that if the authorization had been deemed null from the publication of the provisional measure, establishing a specific end date for the authorization would be unnecessary. She stated, "The administration cannot fully anticipate the termination effects to a date prior to the time frame foreseen in the measure itself."
While allowing Stake to resume operations, the court imposed twelve conditions, including:
1. A ban on betting by individuals barred by law or through regulatory mechanisms.
2. Prohibition of gambling with funds from social programs.
3. Requirements to maintain mechanisms for identifying bettors.
4. Prohibition on advertising directed at children and teenagers.
5. No new promotional campaigns to expand user bases.
6. Betters must be able to withdraw their balances.
7. Stake must maintain sufficient funds to cover outstanding balances.
8. Preservation of registration and financial records.
9. Continued reporting to regulatory bodies.
10. Operations must not occur through unauthorized domains.
11. The court’s decision cannot be used to validate unlicensed operators using the Stake brand.
12. Measures must remain in place against fraud and trademark misuse.
Commenting on the ruling, Bichara e Motta emphasized its significance for the fixed-odds betting sector, stating, "This is the first favorable decision for a fixed-odds betting operator in Brazil regarding Provisional Measure No. 1,394/2026. The request to continue operations until the original expiration of the authorization remains subject to merit review."
