The Federal Court of São Paulo has granted Stake a partial injunction, allowing the betting platform to resume operations in Brazil until October 25. This ruling, signed by Federal Judge Cristiane Farias Rodrigues dos Santos of the 9th Federal Civil Court, comes as a response to a lawsuit filed by the law firm Bichara e Motta, which sought to suspend Provisional Measure 1.394 and requested permission for Stake to function until its operator license expires on December 31, 2029.
Judge Rodrigues dos Santos partially agreed with the request, permitting Stake to operate until the aforementioned deadline. She mandated that the company's website be unblocked to facilitate ongoing activities.
As a result of this decision, authorities are instructed not to regard Stake's authorization as terminated, effectively reinstating access to its platform and blocking the government's site designed to inform bettors about the cessation of betting.
This legal development follows a ban on online gambling imposed by Brazilian President Luiz Inácio Lula da Silva in late September through a provisional measure. Before this court victory, two leading gambling trade organizations in Brazil appealed to the Supreme Federal Court to overturn this ban, but a timeline for the court's ruling remains uncertain.
The October 25 deadline aligns with the date set by the provisional measure for the lapse of operators' licenses. The judge indicated that if the authorization ceased upon the publication of the provisional measure, there would be no need for a specific later date for termination. She remarked that the administration cannot prematurely implement termination effects before the timeline indicated in the measure.
While permitting Stake's resumption, the Federal Court imposed 12 specific conditions, including restrictions on betting by individuals legally barred, a ban on gambling with social program funds, and another prohibiting advertising targeted at minors. The court also required mechanisms to maintain bettor identities, ensure withdrawal options, and retain sufficient funds for outstanding balances among other measures.
Bichara e Motta commented on the ruling's significance for the fixed-odds betting industry, stating that this is the first favorable ruling for a fixed-odds operator amid the legal disputes surrounding the implications of Provisional Measure No. 1,394/2026. They emphasized that the request for continued operations until the original authorization's expiration is still subject to a merit review.
