São Paulo Federal Court Grants Stake Brazil Partial Injunction on Betting Ban Until October 25

The Federal Court of São Paulo granted Stake Brazil Ltda a partial preliminary injunction allowing continued fixed-odds betting operations until October 25, 2026. Federal Judge Cristiane Farias Rodrigues dos Santos of the 9th Federal Civil Court issued the ruling, which stops short of suspending Provisional Measure No. 1.394/2026. That measure, issued by President Luiz Inácio Lula da Silva on September 25, banned online betting.

According to reporting by SBC Americas, the decision arrives while the Supreme Federal Court case sits stalled. Rapporteur Luiz Fux plans to rule only after the October 25 presidential runoff. dos Santos rejected Stake Brazil Ltda‘s bid to extend operations through December 31, 2029 — the original license term — but accepted a narrower request tied to the measure’s own deadlines.

Deadline Inconsistency Shapes the Ruling

dos Santos focused on conflicting timelines within the provisional measure. It required platforms to cease operations in 10 days yet set authorized licenses to expire after 30 days. The judge stated: “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 ruling blocks federal authorities from shutting down the stake.bet.br domain or imposing sanctions based solely on early termination of the authorization. It does not deem the measure unconstitutional. The injunction applies only to Stake Brazil Ltda and remains subject to reversal.

Limits of Relief and Compliance Obligations

Continuation hinges on 12 strict conditions. These mandate bettor identification, age verification, anti-money laundering controls, responsible gambling tools, self-exclusion options, and blocks on bets from social welfare programs such as Bolsa Família. New promotional campaigns, customer-acquisition bonuses, and advertising to minors are prohibited. Stake Brazil Ltda must sustain withdrawal liquidity and transmit data to the Betting Management System (Sigap).

In its suit, the operator disclosed a BRL 30 million licensing fee, BRL 87.8 million in share capital, and approximately BRL 128.2 million in total investments, expenses, and compliance costs, plus 41 employees. dos Santos recognized that duly granted authorizations backed by payment and investment carry legal weight, yet noted this does not bar later regulatory changes.

Stake Brazil Ltda stated the decision “represents an important signal for Stake Brasil and for all those operating under state authorization and oversight.” It pledged continued compliance.

Where Legal Certainty Ends

This narrow injunction exposes the provisional measure’s internal contradictions but leaves its constitutional foundation intact for now. Operators holding similar licenses face the same abrupt deadlines after October 25 unless Fux or the Federal Public Prosecutor’s Office alters course. The ruling supplies temporary breathing room grounded in documented investment and procedural gaps; it does not restore the prior regulatory bargain. Licensees should weigh immediate compliance upgrades against the probability of stricter enforcement once the Supreme Federal Court acts.

Reporting: SBC Americas

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