Stake Forced Offline Again as Brazil Court Overturns Betting Ban Reprieve

Stake’s brief return to Brazil’s online gambling market has ended after a federal appeals court overturned an injunction that temporarily protected the operator from the country’s betting ban.

The decision was issued by the Federal Regional Court of the 3rd Region, following an appeal by Brazil’s Attorney General’s Office (AGU). 

The reversal came just two days after a São Paulo federal judge granted Stake temporary protection from the ban, allowing it to resume operations until October 25.

At the time Stake said the decision represented “an important signal” for both the company and the wider market.

But while Stake’s website and app came back online on October 8, they have now once again been unavailable since October 10.

When Casino.org attempted to access Stake Brazil via a Brazilian VPN, it received a notice saying that operations were suspended.

“On October 8, 2026, a federal court ruling authorized Stake Brazil to resume operations. However, that decision was overturned by the Federal Regional Court of the 3rd Region. As a result, Stake Brazil’s website and app have once again been unavailable since October 10, 2026,” the notice said.

“We sincerely apologize for this situation,” it added.

Court Says Stake Exemption Would Undermine Ban

Judge Johonsom Di Salvo ruled that allowing Stake to continue operating while competitors remained banned could not be justified.

“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,” he said.

Brazil’s online betting operators were ordered offline earlier this month as a result of a provisional measure introduced by President Luiz Inácio Lula da Silva.

The AGU has defended the ban despite a raft of legal challenges from operators and industry bodies.

It argues that the government acted based on evidence gathered since Brazil first introduced its regulated betting market in 2025.

Gambling Ban Faces Supreme Court Test After Election

The future of Brazil’s betting industry remains deeply uncertain.

While Supreme Court Justice Luiz Fux is considering a challenge to the provisional measure, he has indicated that he won’t make a decision on whether to suspend the ban until after the country’s presidential election.

Brazil will hold a presidential runoff on October 25. Prediction market traders currently give Flávio Bolsonaro an 87% chance of defeating Lula.

While both candidates have criticized aspects of the gambling industry, Bolsonaro has questioned the timing of Lula’s prohibition.

He has also suggested that online casino gaming and sports betting should face different regulatory treatment. This could open the door to a partial return of legal gambling under his presidency.

Meanwhile, industry associations are flagging up the impact the ban could have on Brazil’s economy.

A recent study by LCA Consultores estimated that the prohibition could put R$73 billion ($14.7 billion) in tax revenue at risk over the next four years.

The research also warned that more than 15,500 jobs could be lost if the ban remains in place.