A Brazilian federal appeals court has suspended the injunction that allowed iGaming operator Stake Brazil to resume online betting operations until October 25.
The operator’s website and mobile app went offline again on October 10, two days after their return.
The Federal Regional Court of the 3rd Region (TRF-3) issued the decision on October 9 in response to an emergency appeal from the Attorney General’s Office (AGU).
Federal Appellate Judge Luis Antonio Johonsom di Salvo, the court’s president, issued the ruling, which reinstated the restrictions under Provisional Measure No. 1,394/2026. Stake no longer has the judicial protection that had temporarily allowed it to operate, and the case remains ongoing.
Court rejects an exemption for a single operator
In its appeal, the AGU challenged the authorization granted exclusively to Stake. The government argued that permission for a single company to continue operating could undermine the uniform application of federal measures for the betting market.
Di Salvo ruled that permission for one operator to continue taking wagers while its competitors remained banned was legally indefensible. He considered that the injunction could create unequal regulatory treatment between companies subject to the same restrictions. He also noted the risk that other operators could seek similar rulings to continue operating while the restrictions remain in force.
“The fact that only one company remains authorised to regularly carry out economic activity while the others are subject to restrictions established by the Public Authorities demonstrates a regulatory asymmetry capable of affecting the execution of the implemented public policy,” the judge said.
The suspension is provisional. It will remain in effect until a final ruling is issued or the court’s presidency issues a new decision.
A two-day return to the market
The TRF-3 decision overturned an injunction granted on October 8 by Federal Judge Cristiane Farias Rodrigues dos Santos of the 9th Federal Civil Court of São Paulo. The judge had authorized Stake to resume operations until October 25, 2026, or until a further judicial decision.
That ruling set conditions for continued operations. Stake had to maintain user identification mechanisms and preserve funds available for withdrawals, and it was prohibited from launching new promotional campaigns aimed at expanding its customer base.
The court rejected Stake’s request to remain operational until December 31, 2029, the scheduled expiry date of its original license.
At the time, Stake called the ruling “an important signal” for the operator and for the Brazilian gaming sector as a whole. Its website and app re-entered service on October 8 but were inaccessible again by October 10.
Provisional measure faces Supreme Court review
President Luiz Inácio Lula da Silva announced Provisional Measure No. 1,394/2026 on September 25. The measure established restrictions on the operation, offering, intermediation, and advertising of fixed-odds betting in Brazil, and it ordered the termination of authorizations granted to the companies it covers.
Brazil’s online betting operators were ordered offline earlier this month, and the restrictions affected platform operations and consumers’ ability to access the services.
The AGU has defended the federal prohibition against a wave of emergency injunctions from operators and trade bodies. Attorneys defending the measure contend that the executive branch acted on concrete empirical data gathered since Brazil’s regulated betting framework took effect in 2025, specifically rising household indebtedness and problem gambling metrics.
Industry associations have also petitioned Brazil’s Supreme Federal Court (STF) over the restrictions, which takes the dispute beyond Stake’s individual case. Justice Luiz Fux is reviewing a constitutional challenge against the measure, but he has indicated that he will withhold any ruling on suspending the ban until after the presidential election.
The TRF-3 decision does not resolve the constitutional question. The court suspended Stake’s judicial authorization without determining whether the provisional measure is constitutional.
Election runoff adds uncertainty for operators
Brazil will hold its presidential election runoff on October 25. Political prediction markets currently give opposition candidate Flávio Bolsonaro an 87% chance of defeating Lula.
Both candidates have criticized the industry. However, Bolsonaro has publicly questioned the abrupt timing of Lula’s shutdown and has suggested that sports betting and online casino gaming should be subject to separate regulatory models. That position could open a path to a partial market reopening under his administration.
Major economic trade groups have warned of severe fiscal fallout if the prohibition persists. A recent study by LCA Consultores estimated that the ban could put R$73 billion ($14.7 billion) in tax revenue at risk over the next four years. The research also warned that more than 15,500 jobs could be lost if the ban remains in place.