Court Ruling Gives Stake Temporary Brazil Reprieve

Stake Brazil has secured a court victory against Brazil’s gambling ban, with the operator hailing the ruling as an “important signal” for the market.

A federal judge in São Paulo granted Stake partial protection from the ban in a ruling made on Thursday (October 8). It means Stake Brazil is allowed to resume its operations until October 25, albeit under certain conditions.

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, and all others linked to license holders, from October 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 Brasil and for all those who operate under state authorisation and supervision,” a company said via a statement.

“By recognising that an authorisation 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 license expires in December 2029.

However, Judge Cristiane Farias Rodrigues dos Santos declined that request, saying she could not guarantee continued operations until 2029 without first hearing from the 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 said Stake’s license does not guarantee an unchanged regulatory framework throughout its term, she did note that Stake’s investment in Brazil created legal interests that authorities must consider before withdrawing authorization.

Stake’s temporary reprieve in Brazil came with a series of conditions. These included maintained anti-money laundering, age verification, responsible gambling, and self-exclusion controls.

On top of these, the operator cannot introduce new promotions, acquisition bonuses, or other initiatives aimed at growing 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.

In filings, the extent of the company’s investments in Brazil was also revealed. Stake reported investing approximately R$128.2 million ($25.5 million) in its Brazilian operations, as well as paying R$30 million ($5.98 million) for a license. The company employs 41 people in Brazil.

The company said it believed it was the first licensed operator to obtain protection against the ban.

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

The injunction applies only to Stake and does not suspend the wider ban. The court also made clear that it provides no guarantee of continued operations beyond October 25.

That’s the same day as the runoff of Brazil’s presidential election, with Flávio Bolsonaro currently well positioned to defeat Lula.