Stake has been granted a preliminary injunction by the Federal Court of São Paulo to keep its Brazil website live until 25 October.
Judge Cristiane Farias Rodrigues dos Santos issued the ruling, which sets a precedent in the post-gambling ban timeline set in motion by President Lula da Silva.
Under the decree enforced by the Head of State on 25 September, all types of gambling were banned overnight, with operators given until 6 October to fully wind down their footprint in Brazil, including their digital presence.
The motion is yet to be reviewed by Congress and the Supreme Court, which have reserved the right to respond after the ongoing Presidential election cycle concludes on 25 October.
Naturally, the measure has created major rifts between business and government.
Brazil’s Attorney General Office and the Federal Prosecution Office have backed the decree of President Lula – the man who himself brought licensed gambling to Brazil in 2024 – on the premise that it is in the public interest.
Meanwhile, licensed operators and national trade bodies are mounting a defence, arguing that Lula’s decree has tarnished the constitutional right to conduct business in Brazil.
In their words, the President has trampled over the legal certainty granted to licensees by the government itself, which in many cases guaranteed a five-year operational licence that came with a R$30m (£4.5m) price tag.
Decision on Stake “first of its kind”
Stake’s success of partially overturning the motion, albeit temporarily, shows that there are legitimate holes to be poked in the provisional measure.
SBC Noticias reported that after a careful examination of the decree, Judge Santos indicated that there are two deadlines outlined in it, with each to be interpreted individually.
While Lula did indeed give operators only 10 days to fully scale back their digital presence, the decree specifically indicated that all licences will be suspended one month after its enforcement.
Judge Santos therefore argued that the latter serves as evidence of the government’s acknowledgement of the need for a 30-day transition period, granting Stake the right to fully utilise it but under strict conditions.
The operator must keep all AML, self-exclusion, age ID and RG mechanics operational until the website goes offline.
In addition, Stake is not allowed to onboard new customers, promote sign-up bonus incentives, or create new marketing material for the time being.
It also needs to ensure that all player withdrawals and refunds remain unobstructed, while maintaining its reporting compliance duties with authorities as usual.
For SBC News, Stake commented: “Stake Brasil positively receives the decision of the Federal Court of São Paulo, which provisionally preserved the effects of its authorisation for the exploration of fixed-odds betting.
“The decision represents an important signal for Stake Brasil and for all those who operate under state authorisation and supervision.
“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.
“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.
“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.
“To our knowledge, we are the first licensed operator to get a decision of this kind.”