GamblingNews
Brazilian appeals court overturns Stake injunction, ending its brief reprieve from the nationwide gambling ban
A federal appeals court has suspended an injunction that had let Stake keep operating in Brazil until October 25. The operator is again bound by the government's ban on fixed-odds gambling, which remains legally contested.
Stake has lost the temporary legal protection it won in Brazil after a federal appeals court overturned the injunction that had allowed it to keep operating despite the government's nationwide gambling ban. The injunction had allowed the operator to continue until October 25.
On Friday, October 9, the Federal Regional Court of the 3rd Region granted a request from the federal government to suspend the previous day's decision by São Paulo's 9th Federal Civil Court. That earlier ruling had stopped the authorities from revoking Stake's license and blocking its platform. The suspension stays in force until the original case concludes or the court issues another decision.
The Attorney General's office, which challenged the injunction, argued that it gave Stake an unfair market advantage. The appeals court accepted that allowing the company to stay active could create regulatory inequality, lead to inconsistent application of government policy and encourage other operators to pursue similar legal routes. The court did not assess the merits of Stake's lawsuit or the constitutionality of the provisional measure. Its decision centered on the consequences of letting one operator remain in business while competitors were barred.
The dispute stems from President Lula's provisional measure in September, which banned all forms of fixed-odds gambling. Companies had to halt their services, including local operators that had been active in Brazil for years. Stake challenged the measure in court to protect its business and its federal license.
The broader outlook for Brazil's legal gambling market is still uncertain. The Attorney General's office recently asked Supreme Federal Tribunal Justice Luiz Fux to reject all legal challenges to the ban and to deny operators' compensation requests. Betting companies, sports clubs and broadcasters are expected to face significant losses.
Politics may also play a part. Some observers believe Flávio Bolsonaro, Lula's main rival in the ongoing elections, could restore the regulated gambling industry if he won. Brazil's Congress is also due to review the provisional measure, but given the legislative timetable the matter may remain unresolved until 2027. Stake's return to the market therefore depends largely on factors outside its direct control.
Based on reporting by GamblingNews.