Stake wins court battle over Brazil gambling ban
A Brazilian federal court has handed online gambling operator Stake a temporary victory against the country’s gambling prohibition, allowing its licensed Brazilian operation to continue until October 25.
The decision, delivered on October 8 by Judge Cristiane Farias Rodrigues dos Santos of São Paulo’s 9th Federal Civil Court, represents the first successful legal challenge by an individual company against the immediate effects of Brazil’s sweeping online gambling ban.
President Luiz Inácio Lula da Silva introduced the prohibition through Provisional Measure 1.394/2026 on September 25, ordering licensed online betting sites and online casinos to cease operations and take their websites offline.
The ban brought an abrupt end to a regulated gambling market that had required operators to pay R$30 million for federal authorisations.
Stake Brazil challenged the measure, arguing that it had invested heavily in complying with the country’s licensing requirements and held an authorisation valid until December 2029.
The court granted only part of its application.
Under the interim order, Stake’s existing authorisation must remain effective until October 25, unless a further court decision intervenes. Authorities cannot block or redirect its licensed Brazilian website solely on the basis that the authorisation has already expired.
The ruling also prevents regulators from penalising Stake simply for continuing activities permitted under the temporary order.
However, the court did not overturn the government’s prohibition or grant Stake permission to operate until 2029.
Brazilian court imposes restrictions on Stake
The judge imposed conditions intended to protect consumers while the legal dispute continues.
Stake must maintain existing anti-money laundering procedures, age verification, responsible gambling protections, self-exclusion systems and customer betting limits.
The operator is also prohibited from launching new promotional campaigns, offering customer acquisition bonuses or undertaking initiatives designed to expand its player base.
Existing customer balances must remain available for withdrawal, and Stake must continue reporting required information to Brazil’s betting monitoring system.
The judge noted an important distinction within the government’s own provisional measure.
Although Brazil’s gambling websites were ordered offline earlier in October, existing gambling authorisations were not scheduled to expire until October 25.
The court found that authorities could not simply bring forward the legal termination of those authorisations without properly addressing that distinction.
The judge described the temporary protection as a measure preserving the existing legal position rather than a declaration that the government’s ban was unconstitutional.
Wider industry challenge continues
Stake’s victory comes as Brazil’s licensed gambling industry mounts a broader legal campaign against the prohibition.
The National Association of Games and Lotteries (ANJL) and the Brazilian Responsible Gaming Institute (IBJR) have challenged the measure before the Supreme Federal Court.
Industry representatives argue that operators invested substantial sums in licences, technology, compliance and employment under a regulatory framework introduced by the government itself.
The government maintains that the prohibition is necessary to address gambling-related financial harm and household indebtedness.
The consequences are already substantial.
Brazilian authorities say licensed gambling websites have ceased operating, while banks are preparing to return approximately R$1.325 billion in outstanding customer balances.
Stake’s temporary victory does not automatically extend to other operators, but it provides the industry with its first favourable judicial ruling as the fight over Brazil’s gambling future intensifies.
