Brazil Court overturns Stake’s betting ban injunction
A Brazilian federal appeals court has overturned an injunction allowing Stake to continue operating until October 25, removing the first successful legal challenge by a licensed bookmaker against the government’s nationwide online gambling ban.
The decision was issued on October 9 by Luis Antonio Johonsom Di Salvo, president of Brazil’s Third Regional Federal Court (TRF3), following an appeal by the federal government’s legal office, the Advocacia-Geral da União (AGU).
It reverses a ruling delivered just a day earlier by the 9th Federal Civil Court of São Paulo, which had temporarily protected Stake from enforcement measures under Provisional Measure 1.394/2026.
That legislation, introduced by President Luiz Inácio Lula da Silva in September, prohibits the operation, offering and advertising of online sports betting and casino games, effectively dismantling the regulated market launched in January 2025.
Under the government’s timetable, licensed operators were required to take their websites and applications offline from October 6, with existing gambling authorisations scheduled to terminate on October 25.
Stake had challenged the measure on the grounds that its existing licence was valid until December 2029 and that the government had failed to provide sufficient time for operators to wind down their businesses.
The initial court ruling accepted part of that argument, allowing Stake to continue operating until October 25 under conditions that included maintaining player protection controls, preserving customer funds and refraining from launching new promotional campaigns.
However, the federal government successfully argued that permitting one operator to remain active while its competitors were prohibited from operating would undermine the consistent application of the new policy.
In overturning the injunction, the appeals court found that allowing a single company to continue operating created regulatory inequality capable of compromising the implementation of the government’s gambling prohibition.
The decision removes Stake’s temporary protection against enforcement action, although the wider legal challenge to Brazil’s online gambling ban remains unresolved.
Industry associations, including the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR), have separately petitioned the Supreme Federal Court to suspend the legislation.
Those challenges are being considered by Justice Luiz Fux, with no final decision announced.
The ruling represents another setback for Brazil’s licensed gambling companies that paid substantial authorisation fees to enter the regulated market, only to face its closure less than two years after launch.
It also highlights the legal uncertainty surrounding the government’s decision to prohibit an industry that had previously been encouraged to invest in licensing, technology and regulatory compliance.
