Brazilian court suspends injunction, blocking Stake's online betting operations
A federal appeals court overturned a ruling that had allowed Stake to resume service, siding with government arguments against unequal treatment.
A Brazilian federal appeals court has suspended an injunction that allowed iGaming operator Stake Brazil to resume online betting operations until October 25.
The Federal Regional Court of the 3rd Region (TRF-3) issued the decision on October 9 in response to an emergency appeal from the Attorney General’s Office (AGU).
Federal Appellate Judge Luis Antonio Johonsom di Salvo, the court’s president, issued the ruling, which reinstated restrictions under Provisional Measure No. 1,394/2026.
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"The fact that only one company remains authorised to regularly carry out economic activity while the others are subject to restrictions established by the Public Authorities demonstrates a regulatory asymmetry capable of affecting the execution of the implemented public policy," the judge said.
The AGU had argued that permission for a single company to continue operating could undermine the uniform application of federal measures for the betting market.
Di Salvo ruled that permission for one operator to continue taking wagers while its competitors remained banned was legally indefensible.
The suspension is provisional and will remain in effect until a final ruling is issued or the court’s presidency issues a new decision.
It overturns an injunction granted on October 8 by Federal Judge Cristiane Farias Rodrigues dos Santos of the 9th Federal Civil Court of São Paulo.
That ruling had authorized Stake to resume operations until October 25, 2026, or until a further judicial decision, with conditions including maintaining user identification and preserving withdrawal funds.
Stake’s website and mobile app went offline again on October 10, two days after their return.
At the time of the initial injunction, Stake called the ruling "an important signal" for the operator and for the Brazilian gaming sector as a whole.
President Luiz Inácio Lula da Silva announced Provisional Measure No. 1,394/2026 on September 25, establishing restrictions on fixed-odds betting and ordering the termination of authorizations granted to covered companies.
The AGU has defended the federal prohibition against a wave of emergency injunctions from operators and trade bodies.
Attorneys defending the measure contend that the executive branch acted on concrete empirical data gathered since Brazil’s regulated betting framework took effect in 2025, specifically rising household indebtedness and problem gambling metrics.
Industry associations have also petitioned Brazil’s Supreme Federal Court (STF) over the restrictions.
Justice Luiz Fux is reviewing a constitutional challenge against the measure, but he has indicated that he will withhold any ruling on suspending the ban until after the presidential election.
Brazil will hold its presidential election runoff on October 25.
Opposition candidate Flávio Bolsonaro has publicly questioned the abrupt timing of Lula’s shutdown and has suggested that sports betting and online casino gaming should be subject to separate regulatory models.
Major economic trade groups have warned of severe fiscal fallout if the prohibition persists.
A recent study by LCA Consultores estimated that the ban could put R$73 billion ($14.7 billion) in tax revenue at risk over the next four years and warned that more than 15,500 jobs could be lost.
Isabelle Moreau is the editor of Novello Desserts and writes about family life and everyday living in Canada. The editor signs off on corrections and editorial standards.