Stake Wins Temporary Court Order to Continue Operating in Brazil

Stake Brazil has secured a major victory against the federal online betting ban, with the operator hailing the ruling as an “important signal” for the country’s regulated market.

A São Paulo federal judge granted the bookmaker a temporary injunction, allowing operations to continue through Oct. 25 while legal challenges proceed.

The decision prevents Brazil’s authorities from terminating Stake’s license earlier than that date or blocking its stake.bet.br website.

Brazil’s Ministry of Justice had previously ordered measures to block the domain, along with all others linked to state license holders, effective Oct. 6.

Stake welcomed the ruling, arguing that operators which had secured licenses through the proper regulatory process should have their investments and legal rights protected.

“The decision represents an important signal for Stake Brazil and for all those who operate under state authorization and supervision,” the company said in a statement.

“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.”

The decision follows an abrupt ban on online betting in Brazil last month, which came via a provisional measure signed by President Luiz Inácio Lula da Silva.

Court Rejects Stake’s Bid for Longer-Term Protection

Stake had asked the court to suspend the application of the Provisional Measure against its business until its existing state license expires in December 2029.

However, Judge Cristiane Farias Rodrigues dos Santos declined that request, stating she could not guarantee continued operations through 2029 without first hearing from federal authorities.

The relevant government bodies have 10 days to respond, after which the court may reconsider the matter. The case will also be referred to federal prosecutors.

While the judge noted that Stake’s license does not guarantee an unchanged regulatory framework throughout its term, she acknowledged that Stake’s capital investment in Brazil created legal interests that authorities must consider before withdrawing authorization.

Stake’s temporary reprieve in Brazil came with strict regulatory conditions. The operator must maintain robust anti-money laundering controls, age verification protocols, responsible gambling safeguards, and self-exclusion mechanisms.

Additionally, the operator is barred from introducing new promotional campaigns, acquisition bonuses, or other marketing initiatives aimed at expanding its customer base.

Stake Warns of Illegal Gambling Risk

In its court submission, Stake argued that closing the regulated market would not eliminate gambling demand but instead push customers toward illegal operators.

Court filings also revealed the extent of the company’s capital commitment in the country. Stake reported investing approximately 128.2 million Brazilian reals ($25.5 million) in its local operations, alongside a 30 million real ($5.98 million) licensing fee. The company currently employs 41 workers in Brazil.

Stake indicated it believes it is the first licensed operator to obtain judicial protection against the federal ban.

“To our knowledge, we are the first licensed operator to get a decision of this kind,” a company spokesperson said.

The injunction applies strictly to Stake and does not suspend the broader federal ban. The court also emphasized that the ruling provides no guarantee of continued operations beyond Oct. 25.