Stake is preparing another legal challenge after a Brazilian court overturned its temporary protection from the Brazil betting ban. The dispute could affect other licensed operators.
Brazil’s betting industry is facing another legal battle.
Stake is preparing to challenge a court decision that removed its temporary permission to operate in the country.
The reversal came just one day after a lower court granted the operator an injunction against the Brazil government’s betting ban.
The case has wider importance for Brazil’s regulated gambling market.
Operators had paid significant fees and made investments under the country’s licensing framework. However, the government later moved to prohibit licensed betting through a provisional measure.
Stake’s legal team says the decision is not final. It is considering further action that could influence how other operators respond to the ban.
Why Did Brazil Reverse Stake’s Injunction?
The dispute began after President Luiz Inácio Lula da Silva introduced Provisional Measure 1.394/2026 in September. The measure prohibited licensed betting activities and set 25 October as the date for the cancellation of existing authorisations.
Stake challenged the measure through the Federal Court of São Paulo.
On 8 October, Judge Cristiane Farias Rodrigues dos Santos granted the operator a partial preliminary injunction.
The order allowed Stake to continue operating until 25 October. It also required the authorities to keep its website accessible and refrain from treating its authorisation as terminated during that period.
However, the relief did not last long.
The Attorney General’s Office (AGU) appealed the decision. It argued that allowing Stake to operate while other licensed companies remained blocked would create an unfair advantage.
On 9 October, Judge Luis Antonio Johonsom di Salvo, president of the Federal Regional Court of the 3rd Region (TRF-3), suspended the injunction.
The decision returned Stake to the same position as other operators affected by the ban.
Stake Plans Another Legal Challenge
Stake has not accepted the reversal as the end of its legal fight. Udo Seckelmann, a partner at the law firm Bichara e Motta Advogados, confirmed that the company plans to challenge the decision.
He told iGaming Business that the legal team was examining two possible strategies.
However, he did not disclose the grounds or the exact approach Stake would take.
Seckelmann also highlighted the wider importance of the case. He said a favourable decision could create an opportunity for other operators to seek similar relief.
Stake’s argument focuses partly on the investments companies made to enter Brazil’s regulated market.
The licensing framework required operators to pay a BRL30 million authorisation fee, worth around US$6 million at the time. Companies also had to maintain a financial reserve of at least BRL5 million.
International operators faced another requirement. They needed to establish a local headquarters in Brazil.
Stake argues that the government changed the rules after companies had made these commitments. Its licence was originally valid for five years, but the new measure threatened to end its operations much earlier.
The operator believes this raises concerns about legal certainty and the protection of business investments.
Brazil’s Betting Ban Raises Wider Industry Concerns
The dispute is not limited to Stake. The ban has created uncertainty for companies that entered Brazil after the regulated market launched on 1 January 2025.
The industry had spent years preparing for the online iGaming license. Operators invested in local offices, compliance systems, technology, partnerships and market development.
The sudden policy change has put these investments at risk.
According to a partial survey by the National Association of Games and Lotteries, more than 3,500 workers had been laid off in Brazil’s betting sector following the announcement of the provisional measure.
Stake’s legal representative also described operational losses. He said the company had frozen activities, terminated contracts and dismissed employees. He warned that a prolonged legal process could cause damage that would be difficult to reverse.
The debate also involves the distinction between licensed operators and illegal gambling businesses.
Seckelmann argued that the government had not presented sufficient evidence showing that the regulated market was responsible for the reported problems linked to gambling addiction and household debt. He maintained that illegal operators were a major part of the problem.
These are arguments presented by Stake’s legal team. The government, meanwhile, has defended the measure on public health, financial and social protection grounds.
Supreme Court Hearing Adds Another Layer to the Dispute
The wider legal challenge has also reached Brazil’s Supreme Federal Court (STF).
Two major industry associations have filed constitutional challenges against the provisional measure. The National Association of Games and Lotteries (ANJL) filed Direct Action of Unconstitutionality 8027, seeking to suspend the ban.
On 4 November, the STF held a public hearing to examine the measure. Justice Luiz Fux opened the discussion, which involved 34 organisations and representatives from government, the betting industry, football clubs and other sectors.
Government representatives defended the restrictions as necessary to address gambling-related harm. Industry representatives argued that a regulated market offers stronger oversight than a complete prohibition.
The Brazilian Institute for Responsible Gaming (IBJR) asked the court to suspend the measure while Congress or the STF considers the issue.
The hearing also explored possible safeguards if the regulated market returns. Proposals included betting limits across operators, stronger self-exclusion systems, restrictions on credit-funded betting and tighter advertising rules.
However, the hearing did not produce a decision on whether the ban would be suspended or maintained.
A Separate Court Ruling Offers a New Development
A further development emerged on 3 November. Federal appeals judge Adriana Pileggi of TRF-3 granted interim relief to CDA Gaming, the operator behind Casa de Apostas, Betsul and Jogo Online.
The ruling provisionally restored the company’s betting authorisation and ordered the reinstatement of its websites and related operational, financial and payment services.
The decision applies to CDA Gaming, not to the entire industry. It also remains subject to further legal review.
Importantly, this ruling differs from Stake’s earlier injunction. It came from an appeals court judge and directly questioned the constitutionality of the measure. Stake’s previous relief was suspended after the government argued that it gave one operator an unfair advantage.
The new decision may therefore provide another legal reference for companies seeking to challenge the restrictions. However, it does not automatically restore Stake’s permission to operate.
What Happens Next for Stake and Brazil’s Betting Market?
Stake’s next legal move remains unclear. Its lawyers have confirmed plans to challenge the injunction reversal, but the company has not publicly disclosed the filing strategy.
Meanwhile, the Supreme Court proceedings and Congress’s review of the provisional measure will shape the wider regulatory situation.
The November hearing showed that the debate extends beyond the legality of the ban. It also involves consumer protection, illegal gambling, employment, business investment and the role of regulation.
For now, Stake remains affected by the restrictions. The outcome of its challenge could influence other igaming operators, but the separate court decisions and wider constitutional proceedings mean Brazil’s betting market remains uncertain.
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