Federal Court refuses to suspend Brazil’s online gambling prohibition but extends the deadline for ending operations
Stake is resuming its online betting and gaming activities in Brazil under a federal court ruling issued on Thursday.
The preliminary injunction was granted by the Federal Court in Sau Paulo in response to Stake’s complaint regarding the closure of Brazil’s regulated online gambling market on 6 October.
The preliminary injunction allows Stake to operate in Brazil until 25 October, or until the date of a new judicial decision, if sooner. Until then, the state is barred from blocking access to Stake.com.br and imposing any sanctions on the business, except for failing to comply with existing regulations.
The court rejected Stake’s plea to suspend the provisional measure (1.394/2026) that shut down the regulated online gambling market but noted that the measure contains two key dates – 6 October for the closure of websites and apps and 25 October for termination of existing licences that were meant to expire at the end of 2029.
The ruling allows Stake to continue to operate in Brazil until the termination of its licence.
The court said that Stake’s licence does not guarantee the immutability of the regulatory regime until 2029 but does give the company certain rights which cannot be violated without adequate justification. It also found that questions regarding the constitutionality of the provisional measure warrant judicial review.
These include the claimed “urgency” of the measure, the reasoning behind it, the proportionality of the prohibition, and an estimate of its budgetary impact.
Stake Brasil issued a statement this morning welcoming the court’s decision.
“The decision represents an important signal for Stake Brasil and for all those who operate under state authorization and supervision,” it said. “By recognizing that an authorization obtained by fulfilling all legal requirements, paying the grant fee, and making significant investments confers a legal position that cannot be suppressed without due consideration, the Court reaffirmed the importance of legal certainty and the stability of rules.
“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 added: “Since the publication of the Provisional Measure, Stake Brasil has fully complied with the imposed obligations and will continue to do so, in relation to the Provisional Measure and the determinations of the Judiciary, remaining at the disposal of the authorities.”