Stake wins law suit against Brazil, but...

[uneng]

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.

The point above is important to notice. Lula signed a MP, and as the name says, it's provisional, not long lasting or definitive. The congress can easily tear down the measure through voting. Also, if this MP isn't approved by the congress in 120 days or 4 months, it just expires. Let's see if they are going to do something about it right after elections. In negative case, congress is going to enter vacation, and then they only return in February 2027 with the newly elected deputies and senators.

[5W-KILO]

I will like to know how they will do it, because you can't tell me that people from Brazil don't know how to use VPN connection or they dont know how to use casinos that has no KYC requirements.

Many Brazilian can't leave that country because of visa and legal documents, gambling is what they know about and with this new approach they will have to find another way.

The government won't go around asking citizens for their smartphones to know if they are gambling or not, they ban gambling doesn't mean people won't figure something out.

[Comeacross]

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.

Let assume it's a spoon in a basket, you would still have a visible spot. Brazil can not even be compared to a single spoon in a basket, it's like a half basket because they are among the top 10 most populous country in the world with estimated population of over 200 million people. Imagine losing that customers and you think it can be easily replaced.

You can imagine how hard this would affect their profit otherwise they could have stayed silent but Brazil is obviously one of the their biggest markets. If it's not worth fighting for, they won't even bother but they realised how huge they would loss with this development.

[Dr.Bitcoin_Strange]

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.

Well, the fact that they are still running their casino in other countries does not mean that they will be happy or feel ok to lose their operation in one state. Aside the analog you have used here, if I used a different analogy, you will still see how important numbers of customers every business. Assuming you call a number "100" For example, if 10 is deducted from that number, can you still call it 100? The answer is no. Stake is happy to have a certain number of customers from Brazil, if their service is cut off there, they know that losing that number of customers in that place is bad, they rather want to expand more and not shrink. So, I see reason why are fighting to stay.

[BitBakerr1]

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.

We are not in people’s mind and we can never know what they will do next especially since change is constant, we all may think and believe someone may act or take a particular action but may not and that is because people change.
Someone may plan to do a particular thing but because of the information he saw online or the discussion he or she had with someone he or she may change there mind, so let’s just watch and see how things goes.

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.

LOL it’s actually possible, people have a different way to transfer their aggression or react to failure.
Yeah anything is possible.

[aioc]

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.

There are three branches of government in a democratic form of government: the executive, legislative, and judiciary, so Stake is trying to win their case through the judiciary. The reason why Stake want to stay is that they spent a lot on Brazil.

Stake Brazil paid a 30 million reais (about $6 million) license fee, put in 87.8 million reais (about $17.5 million) of share capital, and invested around 128.2 million reais (about $25.6 million) in the country. It has 41 employees and held 508,084 player wallets on Sept. 23, 224,566 of them with money in them.

Stake Is Back Online in Brazil After Court Reprieve From Betting Ban.

But the government has a way to convince the court of what they want, so their chances to extend their license up to 2029 is pretty slim.

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.

It always depends on who's sitting. An online casino with a large market share in a country will always lobby to maintain its presence in that territory, so it will not be forever, given that casinos are willing to invest in the countries where they operate.

[Die_empty]

I will like to know how they will do it, because you can't tell me that people from Brazil don't know how to use VPN connection or they dont know how to use casinos that has no KYC requirements.

Many Brazilian can't leave that country because of visa and legal documents, gambling is what they know about and with this new approach they will have to find another way.

The government won't go around asking citizens for their smartphones to know if they are gambling or not, they ban gambling doesn't mean people won't figure something out.

Using a VPN to bypass these restrictions placed on gambling service providers could attract sanctions. As a means to enforce these restrictions, the Brazilian government has the power to freeze bank accounts linked to gambling activities. The government might also adopt different technological strategies to identify illegal gambling platforms and their users.

It might be safer to seek other forms of entertainment than to risk the consequences of facing sanctions.  

Elections are around the corner. Stake and other casinos would just hope that incumbent President Luiz Inácio Lula da Silva loses the elections.

[New Judgement]

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.

Stake are right to fight for the right by saying they should allow them stay till the expiration of their license. You don’t know the level of investment Stake have made in Brazil, believing that before the expiration of their license they would have profited from the those investments. If the government don’t want them to operate again in Brazil, they should pay them for any damages they will put forward. If the government don’t want the gamble platforms in their country, they would have said, once your operating license expires, don’t come for renewal shut down in this country and leave. The government waking up one morning and telling people that have followed all legal means to do business in the country to just stop operations doesn’t make sense.

[Sammysmart001]

I will like to know how they will do it, because you can't tell me that people from Brazil don't know how to use VPN connection

You are actually right that determined players will always find a way using VPNs and no KYC casinos, but for Stake a giant platform like that replying on VPNs is terrible for their business. As Comeacross pointed out Brazil is a massive market.

Stake will loss the ability to run local advertisements, sponsor Brazilian football teams and would easily accept local fiat deposits, if they are officially banned. The hardcore crypto gamblers operating legally brings in the mainstream masses, VPNs only brings them in.
But since it just a provisional measure and not a permanent law yet. They no that fighting in court is 100% worth of the legal fees to go protect one of their biggest revenue global streams.

[Findingnemo]

Winning a law suit is different and it looks like the deadline to stop their operation is extended and probably will be extended further in the next hearing but it can only be stretched for a little longer not for 2 or 3 years. And complete ban on gambling is never a good idea, governments will realize that once it comes in place so they better provide whatever the strict guidelines they want to keep the operation under their nose.

[crwth]

Hmm. I do think that if the Supreme Court issues a final ruling based on the Constitution, it could change. The current decision isn't final yet, right? But there's no guarantee it can be overturned or that it will go in Stake's favor.

The question for the Supreme Court is whether it's constitutional, and that could be their saving grace. This could set a precedent for other platforms, not just Stake.

[Hispo]

I believe it is a matter of common sense to have big casinos like Stake bringing in lawsuits against the Brazilian government, after all we are talking about licensed which were paid for millions of Reales to the government of Lula and now those licenses are being stripped away from Stake and other casinos.

Though, it would make sense if stake and other casinos waited for the result of these coming presidential elections. I am sure Bolsonaro and even Lula would allow casinos to continue to operate if they already have their presidency on the bag and they do not longer need to do some political manouvers in order to win extra votes.

[Bitcoin Maxi]

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.

There is no way Stake can win the government even though they hire the best lawyers in the country.
A ban on casinos is a ban on all and I don't think the government is gonna allow Stake to continue to be in operation while other casinos are shorting down. This shows that the president doesn't want any form of gambling in the country to limit their citizens from having access to any form of gambling. Unless another new president is elected, the fight against gambling would not stop.

[YOSHIE]

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?

As far as I know, the decision to suspend Stake Brazil is an important thing, considering that the 85 casinos holding licenses in Brazil do not get things like what Stake gets, they cannot operate and remain prohibited.

Stake once stated:

“This ruling is an important signal for Stake Brazil and for all parties operating under state authorization and supervision.”

The case between Stake and the Brazilian government currently has no winners or losers, only a suspension, this case continues in the Brazilian Supreme Court, even though the court rejected Stake's main application, but with this relief it has become a positive thing for Stake, of course there is a final decision to continue the story about Stake with Brazil, in essence everyone hopes that the final decision will be better, especially for the 41 employees and 508,084 players.

[Smartprofit]

In my opinion, Stake Casino has fallen victim to political infighting in Brazil. Brazilian politicians have chosen the easy way out (the path of bans). Imposing bans is, in principle, much easier than creating anything meaningful. 🙋

If the current Brazilian president had promised his voters to build new highways, new factories, new cities in Brazil, to fight crime, and turn the country into a tourist oasis, he would have had a hard time fulfilling such promises. But stifling the gambling industry and depriving a large number of Brazilians of jobs is certainly easy.

Gambling didn't appear yesterday, and it won't disappear tomorrow... Brazil has a very large population. Many gamblers. I think that even with the gambling ban, Brazilians won't stop playing. They'll learn to use VPNs, find online casinos that ignore user verification, and continue playing.  In fact, South American countries could be paradise on earth if their leaders didn't constantly change the rules of the game. However, in Brazil, Argentina, and other South American countries, businessmen can't feel confident because the rules are constantly being rewritten. Unfortunately, this applies not only to gambling.🤷

[Sticky Bomb]

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.

That is no victory, even if they are allowed operate until the 25th, the conditions are too much to operate comfortably. The president has signed the decree, effective immediately, so they would have to stop and hope the president looses in the forth-coming second round of elections so they can have a chance with the new leadership.

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.

Gamblers always find a way around bans, off-shore casinos are there and good thing there are still casinos that allow the use of VPNs, so they can mask their locations. This move would in no way stop Brazilian gamblers from using the casinos.

[Bigjoe33]

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.

Don't forget it's 1+9=10. If you subtract 1 from 10, it becomes 9. Thus, for a complete number, the 1 is really needed.

I think it's purely business, and like you said, Stake is making a lot from them and that's why they can't easily let go. There are other countries they operate, and they are also making money, but that doesn't mean you would just let that go. Every business man will always want to protect his interest. Perhaps, like it was mentioned, they still have a contract running till 2029, and so, they already paid for the contract, and they also need to make money. Let's see what becomes of the election.

[gracreavix]

All this indecision delay is causing stake some deep pockets already or maybe not. I believe it is. They should give judgement and let stake know whether to continue operating in Brazil or leave.

I am even wondering, is the Brazilian government not benefiting from gambling tax? If they are, I see no reason why they want to close it. Seems this is personal. I feel it is. But my feelings are just mere and doesn't prove anything.

[Iranus]

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 way Lula government shut down entire market by issuing Provisional Measure without any proper preparation is completely irrational. Bringing axe down in this manner on platform that have poured vast sum of money into obtaining license and establishing their business will impact entire market.

Strategy adopted by law firm Bichara e Motta to protect Stake's interests is truly worthy of praise. Securing temporary relief from Sao Paulo court at least until October 25th was major win for Stake. AGU's immediate counter action against decree aggravated the situation. But final fight episode is still left!

[coin-investor]

I hope it's not a big concern for the marketing team of Stake.com, the people who manage the campaign of Stake.com, most of whom are from Brazil.

Carrollzinha has been a great manager of Stake.com. I hope they allow access to Stake in case a total ban is implemented, but I hope the Jury will still allow Stake to finish their contract.

Let's see where this leads. Brazil is such a huge market, but if ever, it's not going to be permanent once a new gambling-friendly administration emerges.