The Federal Court of São Paulo granted a partial preliminary injunction to Stake Brazil Ltda Thursday, allowing the company to continue operating fixed-odds betting until October 25, 2026, provided it complies with a series of restrictions. The ruling does not fully suspend the effects of Provisional Measure (MP) No. 1.394/2026, which banned online betting in Brazil on September 25.
The decision was issued by Federal Judge Cristiane Farias Rodrigues dos Santos, of the 9th Federal Civil Court of São Paulo. It comes while the ruling on the provisional measure remains stalled at the Supreme Federal Court (STF). Luiz Fux, the rapporteur for the Direct Actions of Unconstitutionality (ADIs) regarding betting, intends to issue a decision only after the presidential election runoff, scheduled for October 25.
Stake had initially requested the suspension of the provisional measure’s effects regarding its operations, seeking to continue functioning until December 31, 2029 — the deadline originally set in the authorization granted by the Ministry of Finance’s Secretariat for Prizes and Betting (SPA/MF).
The judge rejected that request but partially granted an alternative plea to preserve the authorization until October 25, the date on which the provisional measure itself stipulates the expiration of such licenses. The injunction could lose its effect before that deadline should there be a new judicial ruling.
Consequently, federal authorities are barred from ordering the blocking or redirection of the stake.bet.br domain solely on the grounds of the early termination of the authorization. The government ordered all previously authorized betting platforms to redirect their websites to the “Brasil sem Bets” page, but not all betting operators have complied with the request so far.
Federal authorities also cannot impose sanctions on the company solely for continuing its operations within the limits established by the ruling.
In a statement sent to SBC Notícias Brasil, Stake stated that the decision represents “an important signal for Stake Brasil and for all those operating under state authorization and oversight.” The full statement:
Stake Brasil welcomes the decision by the Federal Court of São Paulo, which provisionally upheld the validity of its authorization to operate fixed-odds betting.
The decision represents an important signal for Stake Brasil and for all those operating under state authorization and oversight.
By acknowledging that an authorization obtained through compliance with all legal requirements, payment of licensing fees, and significant investment confers a legal standing that cannot be revoked without due consideration, the Court reaffirmed the importance of legal certainty and regulatory stability.
Stake Brasil believes that consumer protection is one of the key benefits of a regulated market. It is within this environment—characterized by clear rules, responsible gaming mechanisms, and government oversight—that such protection becomes effective.
Since the publication of the Provisional Measure, Stake Brasil has fully complied with the imposed obligations and will continue to do so regarding both the Provisional Measure and judicial rulings, remaining at the disposal of the authorities.
SBC Notícias Brasil also contacted the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR), two of the major trade bodies in the country, given that the ruling in Stake’s favor paves the way for other companies to obtain similar writs of mandamus. However, neither entity responded by the time this report was published.
Judge identifies discrepancy in deadlines set by Provisional Measure
The ruling is primarily based on the existence of two distinct deadlines within the Provisional Measure (MP) issued by President Luiz Inácio Lula da Silva (PT) on September 25.
While the regulation established a 10-day window for taking betting platforms offline, it stipulated that authorizations granted by the federal government would only expire after thirty days.
In the judge’s view, this discrepancy indicates that the text of the MP itself acknowledged the need for a transition period for authorized operators.
“If the authorization were legally non-existent from the moment the Provisional Measure was published, there would be no reason for the regulation to establish a specific later date for its expiration,” the judge stated.
The ruling also took into account that Stake was directly affected by an official notice from the Ministry of Justice and Public Security (MJSP), which had ordered the redirection of the company’s domain starting October 6.
According to the judge, the public administration cannot fully anticipate the effects of the authorizations’ expiration without specific justification and adherence to the deadlines established by the regulation itself. The judge emphasized, however, that the preliminary injunction does not constitute a ruling that the provisional measure is unconstitutional, nor does it grant Stake a definitive right to continue operating.
Stake must comply with restrictions during this period
The temporary continuation of operations is conditional upon compliance with 12 requirements set by the Federal Court. These include maintaining mechanisms for bettor identification, age verification, anti-money laundering measures, responsible gambling protocols, and self-exclusion options.
The company must also prevent betting by individuals legally barred from doing so and block the use of funds derived from social welfare programs, such as the Continuous Cash Benefit (BPC) and Bolsa Família.
The ruling prohibits new promotional campaigns, bonuses aimed at acquiring customers, and initiatives designed to artificially expand the user base. Advertising directed at children and adolescents remains banned.
Furthermore, Stake must ensure the withdrawal and reimbursement of bettors’ balances, maintain sufficient funds for these payments, and continue transmitting the data required by the Betting Management System (Sigap).
The injunction does not prevent the monitoring of the company’s activities or the adoption of specific measures against users, accounts, transactions, or operators identified as irregular.
Stake claims more than BRL 128 million invested in Brazil
In its lawsuit, Stake argued that the ban jeopardizes investments made after obtaining its federal authorization. The company stated that it had paid BRL 30 million for its operating license, contributed BRL 87.8 million in share capital, and incurred approximately BRL 128.2 million in investments, operating expenses, and regulatory compliance costs.
The operator also reported having 41 active employees and said it had structured its operations to comply with the requirements established by the Brazilian government.
After reviewing these arguments, the judge acknowledged that an authorization granted by public authorities cannot be treated as a mere expectation without legal significance, particularly given the licensing fee paid and the investments made.
However, the judge noted that the existence of an authorization valid until 2029 does not necessarily prevent subsequent changes to the regulatory framework.
Debate over constitutionality of Provisional Measure continues
Stake also challenged whether the Provisional Measure met the constitutional requirements of relevance and urgency set out in Article 62 of Brazil’s Federal Constitution.
The company argued that the government had long been aware of the risks associated with betting, having previously chosen to regulate and oversee the market.
The judge found that the argument had sufficient legal plausibility to warrant further examination but concluded that there was not yet enough evidence to determine that the Provisional Measure was manifestly unconstitutional.
The judge ordered the relevant authorities to submit information within 10 days. The case will subsequently be referred to the Federal Public Prosecutor’s Office (MPF) for its opinion.
Stake’s request to maintain its authorization until December 2029 may be reconsidered once the authorities have submitted their responses and the court has conducted a more thorough legal review.
Until then, the ruling applies exclusively to Stake and does not automatically change the situation of other operators affected by Brazil’s ban on fixed-odds sports betting.
Editor’s note: Leonardo Biazzi of SBC Noticias Brazil is the author of this article.
