The Federal Court of São Paulo has permitted online gambling platform Stake to resume operations in Brazil until Oct. 25, following a legal challenge to a government measure affecting betting licenses.
- A São Paulo court grants a partial preliminary injunction.
- The ruling prevents authorities from treating Stake’s authorization as terminated before that date.
- Stake must comply with 12 conditions, including restrictions on advertising and promotions.
Federal Judge Cristiane Farias Rodrigues dos Santos of São Paulo’s 9th Federal Civil Court granted a partial preliminary injunction after law firm Bichara e Motta filed a case on Stake’s behalf, challenging Provisional Measure 1.394/2026.
Stake had sought permission to operate until its existing license expires on Dec. 31, 2029.
The ruling ordered the website to be unblocked and directed authorities not to treat Stake’s authorizations as terminated before that date.
The decision follows a provisional measure introduced by Brazilian President Luiz Inácio Lula da Silva in September, which outlawed online casinos and sports betting websites in the country.
The judge argued that the legislation’s specified termination date meant the government could not end operators’ authorizations before the deadline.
The injunction imposes 12 conditions on Stake, including prohibitions on betting by legally restricted individuals, gambling with social program funds, and advertising targeting minors.
Stake must also allow customer withdrawals, maintain sufficient funds to cover outstanding balances, preserve transaction records, and submit required regulatory reports.
It cannot launch new promotional campaigns to expand its user base or operate through unauthorized domains, and it must maintain safeguards against fraud and trademark misuse.
In a statement, Stake welcomed the decision, saying it temporarily preserved its fixed-odds betting authorization.
“Stake Brasil understands that consumer protection is one of the main benefits of a regulated market. It is in this environment, with clear rules, responsible gaming mechanisms, and public authority oversight, that this protection becomes effective,” the company said in a statement provided to Covers.
Stake added that it had complied with the obligations imposed since the measure’s publication and would continue to follow regulatory and judicial requirements.
Brazilian trade groups challenge gambling ban
Two Brazilian gambling trade associations have separately asked the country’s Supreme Federal Court to overturn the provisional measure.
The National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) argue that the measure could be considered unconstitutional because the government had not demonstrated sufficient urgency to justify the restrictions.
The associations also warned that the move creates legal uncertainty for operators who obtained licenses and invested under Brazil’s existing regulatory framework.
The groups have requested that the provisional measure’s effects be suspended while the court considers the legal challenges.
