Stake wins law suit against Brazil, but...

[OsaiEmma]

Stake got a partial injunction from the law suit against the sanction to stop operations based on the provisional measure which effectively stopped gambling operations in Brazil. On the 9th of October (2 days ago), Federal Civil Court of São Paulo granted a partial preliminary injunction to Stake to operate until the 25th of October. After the president of Brazil  Luiz Inácio Lula da Silva signed Provisional Measure (MP) No. 1,394/2026 on September 25, 2026, this effectively barred all gambling platforms in Brazil from operating. But Stake brazil, through the Bichara e Motta law firm, filed a  lawsuit, and requested the suspension of Provisional Measure 1.394. They also asked for Stake to be allowed to operate until 31 December 2029, when its operator licence expires.
(Source)

These are the terms they gave to Stake, and the reason for the temporary operation date:

The decision to allow Stake’s operation until 25 October corresponds to the date set by the provisional measure for the expiration of the operators’ licences.

According to the judge, “if the authorisation were legally nonexistent from the publication of the provisional measure, there would be no reason for the rule to establish a specific later date for its termination”.

According to Cristiane Farias, the administration cannot “fully anticipate the termination effects to a date prior to the time frame foreseen in the measure itself”.

Conditions for Stake’s operation
The Federal Court authorised the resumption of the operation, but imposed 12 conditions:

Prohibition of betting by individuals barred by law, government programmes or regulatory mechanisms;
Prohibition of gambling with money from social programmes;
Maintenance of the mechanisms for identifying the bettor;
Prohibition of advertising aimed at children and teenagers;
Prohibition of new promotional campaigns and initiatives to expand the user base;
Maintaining the possibility for the bettor to withdraw their balance;
Preserving sufficient funds to cover outstanding balances;
Preservation of registration, financial and transactional records;
Maintaining the transmission of reports required by regulatory bodies;
Prohibition on operating through unauthorised domains;
Prohibition against using the court decision to “legitimise clandestine operators or third parties who misuse the Stake brand”;
Maintaining measures against fraud, counterfeiting, trademark misuse and the actions of unauthorised operators.

Before now, other bodies (Brazil trade bodies) had been calling for the overturn of the President's directive to ban all gambling platforms. (Source)

Now here's a twist: immediately after the decree in favor of Stake brazil, The Attorney General of the Union (AGU) moved a notion to suspend the favorable decree. Source to get the full story and the reason for suspending the decree.

But this is the part that caught my eyes:

The appellate judge also stressed that the constitutionality of the MP no. 1394/2026 is already under analysis of the Supreme Court (STF), in the Ações Diretas de Inconstitucionalidade (ADIs) no. 8,024, 8,027 and 8,028. In this context, it considered inappropriate specific judicial interventions that could compromise the stability of the rules applicable to the sector.

This means the court is still deliberating on the provision itself. That means there is still room to change the provision and resume gambling activities again in Brazil. What do you all think?

[stompix]

Stake didn't win a thing

Stake had asked the court to suspend the application of the Provisional Measure against its business until its existing state license expires in December 2029.
However, Judge Cristiane Farias Rodrigues dos Santos declined that request, stating she could not guarantee continued operations through 2029 without first hearing from federal authorities.

All they got a temporary suspension to allow them stay in business two more weeks, which was nowhere near what they demanded, and then that also fell apart two days later.
It's bye-bye, and they are just wasting money on lawyers at this point, they should wait for the election results and then try again.

[coinrifft]

Yes, it was just a short victory. But I don't think that they can win the war inside Brazil, the President is against all gambling form and so they are going to reject anything about it and they are for sure going to have a new law mandated and approved on whatever government bodies they have.

And it's only the question of time, as for the gamblers in Brazil, they might have to find a way to play. Maybe using online but that is going to be risky on their side.

[qwertyup23]

I find it weird that the government would allow Stake to continue its operations to the prejudice of others. I mean, what's the difference between Stake and other gambling platforms? If they would extend the operations of Stake, then the government should equally allow such exemption to the other gambling platforms as well.

All they got a temporary suspension to allow them stay in business two more weeks, which was nowhere near what they demanded, and then that also fell apart two days later.
It's bye-bye, and they are just wasting money on lawyers at this point, they should wait for the election results and then try again.

I see- so they requested a temporary extension to allow them to stay in the country for two weeks? I find it odd that they are really pushing their buttons to the point of going to court with this request.

I mean, if Brazil enacts a law prohibiting gambling from their country, then such extension should cover equally to all kinds of gambling platforms. Laws can supersede contracts under their inherent police power for the welfare and benefit of their citizens.

[stompix]

I see- so they requested a temporary extension to allow them to stay in the country for two weeks? I find it odd that they are really pushing their buttons to the point of going to court with this request.

No, they requested to stay in business till December 2029, when their license expired.
The judge only granted them a brief period till 25th of October this year!

This is why I said they won nothing- just a timeout till a new ruling, and this fell apart too because that federal court decision suspended it.

[alani123]

These conditions are so strict that stake might as well close shop and go somewhere else.
Brasil is entering a pre election environment and it would be better off and more ethical if stake as an outside entity took a pause at least until after the elections. Otherwise it's going to be a bit obvious that they're trying to influence the political environment as an outside entity which will make any government even more hostile, unless the politicians completely sell their people out.

[TryNinja]

Stake didn't win a thing

Stake had asked the court to suspend the application of the Provisional Measure against its business until its existing state license expires in December 2029.
However, Judge Cristiane Farias Rodrigues dos Santos declined that request, stating she could not guarantee continued operations through 2029 without first hearing from federal authorities.

All they got a temporary suspension to allow them stay in business two more weeks, which was nowhere near what they demanded, and then that also fell apart two days later.
It's bye-bye, and they are just wasting money on lawyers at this point, they should wait for the election results and then try again.

Yep. I mean, Flavio Bolsonaro will win 100%, and it's very likely that he will allow gambling websites again (he has mentioned sportsbetting, so maybe slots/mines/etc will remain banned). The MP only lasts 120 days, and the right has the majority in the Senate and the National Congress. All they need to do is wait for a bit.

[Charles-Tim]

No, they requested to stay in business till December 2029, when their license expired.
The judge only granted them a brief period till 25th of October this year!

That shows how powerful the federal government can be. They can influence court decision and which it is obvious the used they supreme court to do that.

Yep. I mean, Flavio Bolsonaro will win 100%, and it's very likely that he will allow gambling websites again (he has mentioned sportsbetting, so maybe slots/mines/etc will remain banned). The MP only lasts 120 days, and the right has the majority in the Senate and the National Congress. All they need to do is wait for a bit.

Allowing sportbooks is better than total ban on all gambling products, but why such thinking when sport betting can also have the same effect on people as casino games? I think all should be allowed.

[Crypto Library]

These conditions are so strict that stake might as well close shop and go somewhere else.
Brasil is entering a pre election environment and it would be better off and more ethical if stake as an outside entity took a pause at least until after the elections.

In our common view, it doesn't seem like the stake or their court is doing anything unconstitutional. They are fighting for their rights in court, not that they are forcibly imposing their services there. Now, if it is not permitted by the Brazilian constitution or the courts, then of course, Stake cannot forcefully operate their services there illegally.

Otherwise it's going to be a bit obvious that they're trying to influence the political environment as an outside entity which will make any government even more hostile, unless the politicians completely sell their people out.

Is it even possible to change the political environment by an online gambling site? Definitely, I don't believe that. So how will stakes influence the outcome of their election? I don't know the logic here.

[Africolo]

Stake got a partial injunction from the law suit against the sanction to stop operations based on the provisional measure which effectively stopped gambling operations in Brazil. On the 9th of October (2 days ago), Federal Civil Court of São Paulo granted a partial preliminary injunction to Stake to operate until the 25th of October. After the president of Brazil  Luiz Inácio Lula da Silva signed Provisional Measure (MP) No. 1,394/2026 on September 25, 2026, this effectively barred all gambling platforms in Brazil from operating. But Stake brazil, through the Bichara e Motta law firm, filed a  lawsuit, and requested the suspension of Provisional Measure 1.394. They also asked for Stake to be allowed to operate until 31 December 2029, when its operator licence expires.
(Source)

These are the terms they gave to Stake, and the reason for the temporary operation date:

The decision to allow Stake’s operation until 25 October corresponds to the date set by the provisional measure for the expiration of the operators’ licences.

According to the judge, “if the authorisation were legally nonexistent from the publication of the provisional measure, there would be no reason for the rule to establish a specific later date for its termination”.

According to Cristiane Farias, the administration cannot “fully anticipate the termination effects to a date prior to the time frame foreseen in the measure itself”.

Conditions for Stake’s operation
The Federal Court authorised the resumption of the operation, but imposed 12 conditions:

Prohibition of betting by individuals barred by law, government programmes or regulatory mechanisms;
Prohibition of gambling with money from social programmes;
Maintenance of the mechanisms for identifying the bettor;
Prohibition of advertising aimed at children and teenagers;
Prohibition of new promotional campaigns and initiatives to expand the user base;
Maintaining the possibility for the bettor to withdraw their balance;
Preserving sufficient funds to cover outstanding balances;
Preservation of registration, financial and transactional records;
Maintaining the transmission of reports required by regulatory bodies;
Prohibition on operating through unauthorised domains;
Prohibition against using the court decision to “legitimise clandestine operators or third parties who misuse the Stake brand”;
Maintaining measures against fraud, counterfeiting, trademark misuse and the actions of unauthorised operators.

Before now, other bodies (Brazil trade bodies) had been calling for the overturn of the President's directive to ban all gambling platforms. (Source)

Now here's a twist: immediately after the decree in favor of Stake brazil, The Attorney General of the Union (AGU) moved a notion to suspend the favorable decree. Source to get the full story and the reason for suspending the decree.

But this is the part that caught my eyes:

The appellate judge also stressed that the constitutionality of the MP no. 1394/2026 is already under analysis of the Supreme Court (STF), in the Ações Diretas de Inconstitucionalidade (ADIs) no. 8,024, 8,027 and 8,028. In this context, it considered inappropriate specific judicial interventions that could compromise the stability of the rules applicable to the sector.

This means the court is still deliberating on the provision itself. That means there is still room to change the provision and resume gambling activities again in Brazil. What do you all think?

The president of Brazil is really against gambling in the country and I think this will really affect gamblers in the country but there's hope if the lawsuit has an injunction on it's provision and it's suspended for the time being, then it means that the case can be deliberated upon which the gambling can still be resume in the country, I understand that gambling is bad and it has frustrated many individuals and they have become addicted to it but in the same vein there are people whose gambling is their source of livelihood and they depend solely on gambling, I pray the rules get analyze and stopped.

A well registered and licensed casino can generate revenue for the government by paying tax to the government so in a way gambling can be useful to the government, though the government has alot of influence on court matters and it might be ban permanently in Brazil.

[Outhue]

Stake didn't win a thing

Stake had asked the court to suspend the application of the Provisional Measure against its business until its existing state license expires in December 2029.
However, Judge Cristiane Farias Rodrigues dos Santos declined that request, stating she could not guarantee continued operations through 2029 without first hearing from federal authorities.

All they got a temporary suspension to allow them stay in business two more weeks, which was nowhere near what they demanded, and then that also fell apart two days later.
It's bye-bye, and they are just wasting money on lawyers at this point, they should wait for the election results and then try again

It's looking like Stake Brazil is huge for business, I don't see any reason why stake is even doing this because they are also serving many other countries not just Brazil, if a spoon is lost from a basket of spoons it wouldn't and shouldn't bother the owner, it can easily be replaced not even instantly but when the owner is ready for an extra spoon, if this isn't the case then Stake is benefitting alot from Brazil people then, they should have just stayed silent.

[yahoo62278]

Stake didn't win a thing

Stake had asked the court to suspend the application of the Provisional Measure against its business until its existing state license expires in December 2029.
However, Judge Cristiane Farias Rodrigues dos Santos declined that request, stating she could not guarantee continued operations through 2029 without first hearing from federal authorities.

All they got a temporary suspension to allow them stay in business two more weeks, which was nowhere near what they demanded, and then that also fell apart two days later.
It's bye-bye, and they are just wasting money on lawyers at this point, they should wait for the election results and then try again

It's looking like Stake Brazil is huge for business, I don't see any reason why stake is even doing this because they are also serving many other countries not just Brazil, if a spoon is lost from a basket of spoons it wouldn't and shouldn't bother the owner, it can easily be replaced not even instantly but when the owner is ready for an extra spoon, if this isn't the case then Stake is benefitting alot from Brazil people then, they should have just stayed silent.

Eventually if enough spoons disappear, the basket gets empty. Stake is just trying to keep their business growing instead of shrinking IMO. Look at the number of US states that have no banned their .us product. They are trying to preserve their business, they cannot afford to lose state after state or country after country.

[Fortify]

This means the court is still deliberating on the provision itself. That means there is still room to change the provision and resume gambling activities again in Brazil. What do you all think?

Gambling is often seen by politicians as a soft target, because it's easy to vilify and the only people defending them are the operators themselves. Betting is often seen as a scourge and it can lead to addiction, but it really should be down to individual freedoms. Just like prohibition didn't work, people will continue to find ways to gamble either illegally or legally. It can also be a good source of tax income if the government regulator works with the casinos rather than forces them away. It really takes the big operators who will be making a fair chunk from this market to spend money in order to keep it open, but they might also be pushing for artificial barriers that will make it harder for smaller operators to reach.

[BitBakerr1]

No, they requested to stay in business till December 2029, when their license expired.
The judge only granted them a brief period till 25th of October this year!

That shows how powerful the federal government can be. They can influence court decision and which it is obvious the used they supreme court to do that.

Yeah the federal government are very powerful because they control all the system in a country however, this those not happen in all countries, especially those countries that are very developed, the government in a developed and well structured country can’t influence the judiciary in anyway.

Yep. I mean, Flavio Bolsonaro will win 100%, and it's very likely that he will allow gambling websites again (he has mentioned sportsbetting, so maybe slots/mines/etc will remain banned). The MP only lasts 120 days, and the right has the majority in the Senate and the National Congress. All they need to do is wait for a bit.

Allowing sportbooks is better than total ban on all gambling products, but why such thinking when sport betting can also have the same effect on people as casino games? I think all should be allowed.

I believe they are allowing sport books not because they don’t want to stop it too, I believe they just want to take it one step at a time, some government are very smart they know how to make things work out well for them.
But I really don’t understand why they are fighting casinos like this, the citizens have the right to choose what ever they want.

[ZeroVinsonN]

Allowing sportbooks is better than total ban on all gambling products, but why such thinking when sport betting can also have the same effect on people as casino games? I think all should be allowed.

There is no point in banning one and then allowing the other and I'm sure he will understand that when the time comes, online casinos will still be a thing maybe with more regulations then they currently have but nothing that will push them away from operating in the country.

Eventually if enough spoons disappear, the basket gets empty. Stake is just trying to keep their business growing instead of shrinking IMO. Look at the number of US states that have no banned their .us product. They are trying to preserve their business, they cannot afford to lose state after state or country after country.

The ban wouldn't last but if people stop using you for long enough they will look for an alternative and even when you come back you will no longer be able to pull the same user base as you did before. Stake understands this and are trying to avoid it, most people are saying they should just be patient but they know how much they will lose during that waiting period.

[Charles-Tim]

It's looking like Stake Brazil is huge for business, I don't see any reason why stake is even doing this because they are also serving many other countries not just Brazil, if a spoon is lost from a basket of spoons it wouldn't and shouldn't bother the owner, it can easily be replaced not even instantly but when the owner is ready for an extra spoon, if this isn't the case then Stake is benefitting alot from Brazil people then, they should have just stayed silent.

The reason Stake remain dominant in the crypto gambling industry is because they do not prefer to leave any stones unturned. Stake has done just as how a good gambling site should do. Many people in Brazil will later be using unlicensed gambling site to gamble in Brazil.

I believe they are allowing sport books not because they don’t want to stop it too, I believe they just want to take it one step at a time, some government are very smart they know how to make things work out well for them.

If Flavio Bolsonaro wins the election, do not be surprised if he does not allow casinos. Maybe he is going to change his mind, but his intention right now is to allow just sportbooks. I do not think there is any point he will want to include casinos, but not talking about it.

But I really don’t understand why they are fighting casinos like this, the citizens have the right to choose what ever they want.

Who knows if the president was gambling and lost high amount of money. Just kidding, but anything is possible.

[rdluffy]

...
Yep. I mean, Flavio Bolsonaro will win 100%, and it's very likely that he will allow gambling websites again (he has mentioned sportsbetting, so maybe slots/mines/etc will remain banned). The MP only lasts 120 days, and the right has the majority in the Senate and the National Congress. All they need to do is wait for a bit.

Exactly
I’d say that neither Stake nor any other company would ever be able to get a provisional measure (MP) like this overturned or secure an exception just for itself
Especially since the context of this ban is entirely political and comes on the eve of a presidential election

The most likely outcome is that the provisional measure will expire and everything will return to “normal”

I don't think companies can even expect compensation or anything like that, since the responsibility will fall on the current administration, which will likely already be out of govern by then

Maybe... just maybe they'll be able to get a little head start before the provisional measure expires, but that's just my guess, the normal scenario would be for the new president to let the provisional measure expire on its own

[Y3shot]

Yes, it was just a short victory. But I don't think that they can win the war inside Brazil, the President is against all gambling form and so they are going to reject anything about it and they are for sure going to have a new law mandated and approved on whatever government bodies they have.

And it's only the question of time, as for the gamblers in Brazil, they might have to find a way to play. Maybe using online but that is going to be risky on their side.

Since the Brazilian government doesn't want gambling companies, I don't see any reason why Stake is still pushing hard for a victory to continue the business. Whatever the government decides, nothing will change their decision not to allow it.

As for the gamblers, they will always look for a way to access gambling by any means. This suspension from the government might not even last, just like how some countries made the same decision in the past, which was later reversed.

[ArabBTC]

It's looking like Stake Brazil is huge for business, I don't see any reason why stake is even doing this because they are also serving many other countries not just Brazil, if a spoon is lost from a basket of spoons it wouldn't and shouldn't bother the owner, it can easily be replaced not even instantly but when the owner is ready for an extra spoon, if this isn't the case then Stake is benefitting alot from Brazil people then, they should have just stayed silent.

I don’t think that the main reason why stake is pressing more is because they are benefiting so much from Brazil, the thing is regardless of how big a business, casino or company is they won’t want to lose any of their customers. It is often very difficult to gain recognition in a country/area so am not surprise that Stake is trying so hard to maintain relevance in Brazil, if this case finally ends in Stakes favor it will actually also add to their review and boost their customer base, but i advise they press with caution because the truth is no one can fight and win the government, they should just appeal with the government for considerations, citing their long-standing pedigree.

[L E G E N D A R Y]

One thing we need to understand is that a temporary injunction doesn’t necessarily mean that the court automatically support stake’s argument against the measure itself.  What it implies is that the legal process is still unfolding and what whatever the final outcome might be, could end up affecting other operators who are probably facing the same restrictions. So for now businesses and bettors would still be left dealing with considerable uncertainty, except of course the Supreme Court settled the constitutional questions.