Stake wins law suit against Brazil, but...

[shinratensei_]

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.

Stake already fully complied with the regulation implemented on Brazil, and they also paid significant fees for that. So a sudden ban by Lula is unfair for any of casino that operated legally like stake. No doubt it's a huge lose for the platform because they already fulfilled what government demanded from them.
Apart from that Brazil received close to the $500m from january - august 2026. They made huge sum of money from gambling tax. This is why court gave stake more time to operate their platform, which is fair. yet their future may be depending on the result from election and congress whether to continue to allow gambling or doing a complete ban on it.

[hedgeh0g]

Stake already fully complied with the regulation implemented on Brazil, and they also paid significant fees for that. So a sudden ban by Lula is unfair for any of casino that operated legally like stake. No doubt it's a huge lose for the platform because they already fulfilled what government demanded from them.
Apart from that Brazil received close to the $500m from january - august 2026. They made huge sum of money from gambling tax. This is why court gave stake more time to operate their platform, which is fair. yet their future may be depending on the result from election and congress whether to continue to allow gambling or doing a complete ban on it.

I believe countries need to recognize that the gambling industry generates significant tax revenue, but they must also acknowledge the reality of addiction: players can lose everything and fall into debt, potentially ruining their lives. If a state allows gambling companies to operate within its borders, it should implement mechanisms to assist these individuals after all, a player who has lost everything may desperately seek funds to keep playing, often losing sight of just how far they have hit rock bottom. Countries should take a comprehensive approach engaging experts and other relevant parties to move beyond simple bans and instead implement smart restrictions while providing the necessary support for recovery.

[DanWalker]

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?

You have rightly grasped point. Deep legal review regarding constitutionality of entire MP is already underway through ADIs in STF. So, there is still lot more to see ahead. It is not the case that gambling would cease simply because government shut down entire market overnight. On the contrary, in massive market like Brazil, such move would only increase dominance of offshore and black market.

In my opinion, Supreme Court will have to be somewhat flexible in final judgment. Otherwise all human trust in legal framework will vanish forever. Let's see what STF finally decide, but for now can't watch last episode of this drama until 25th October deadline! This might have long term effect on GambleFi project.

[Mayor of ogba]

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.

It's very wrong of you to say that "if the government of Brazil would extend the operation of stake, then the government should equally allow other gambling platforms as well" because after Brazil government banned all the casino that had licence to operate in Brazil, stake was the only casino that took Brazil government to court and demanded they should be allowed to operate until their license is over or ends. So any casino or gambling platform that wants to receive equal treatment as stake should fight for its right in the law court.

[tread93]

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?

Yes it seems that Brazil is actively looking at perhaps changing or revising their current laws that restrict gsmbling and I think it is interesting that they would Crack down on this and not just impose a tax and then make money from the regulation on the industry

[Orpichukwu]

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’s not a win if you ask me; it’s just shifting their operation for about 2 weeks, maybe as compensation for the money they have spent in lawsuits, unless there are other things in the case file which I’m not seeing, and on top of that, they have also given conditions which will also limit the number of people they can reach, in turn reducing the amount they can make from the country that they break. It's typical just enough time so that people can make withdrawals from the casino. It's not easy to win a case against a sitting government.

[Mr_Brilliant$]

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.

This will just pull people to access gambling sites using VPN. But still, not all of them can use it. And if they do, they will still face some barriers.

Barriers like payment and withdrawal. That's really not an issue if cryptocurrencies is allowed in the country.

While a large percentage of them might just give up. Some people love using commercial banks. And with this, it will heavily discourage them from gambling.

[free-bit.co.in]

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?

Initial court injunction in favor of Stake granted specific company temporary permission to continue operation. It did not declare entire MP unconstitutional. However, TRF 3 has stayed that injunction consequently Stake cannot continue operating based on that order for time being.

I am wondering will STF strike down the entire ban? Or will it merely grant any temporary stay?
Alternatively, might they uphold certain provision of government's regulation?
Outcome of each scenario would be different. Even if part of MP were to be struck down, it does not mean that all gambling platform would immediately resume operation as before.

[BALIK]

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

What I'm thinking is that court's decision is not just about future of gambling industry. Their decision also affect legal certainty of operator and interest of those who have left balance on platform. So I think it is wise to wait for STF's decision without declaring any definitive victory for either side right now.

I actually don't think that prohibition is only solution. Instead of total ban keeping betting operational through accountability and protection of consumer right would be more rational solution for Brazil.

[Hispo]

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.

This will just pull people to access gambling sites using VPN. But still, not all of them can use it. And if they do, they will still face some barriers.

Barriers like payment and withdrawal. That's really not an issue if cryptocurrencies is allowed in the country.

While a large percentage of them might just give up. Some people love using commercial banks. And with this, it will heavily discourage them from gambling.

Though, those who actually want to gamble and continue to have access to gambling services will continue to have access thanks to VPNs and other tools.
That is something regulators and governments seem never to take into serious consideration, they can block all the want and place restrictions, but ultimately on the internet there will be always some wild wests in which people will be able to gamble buy and sell whatever they want, as long as they have money and time to invest on it. And the case of Brazil and Lula won't be different.

Those most affected will be people who got used to use their fiat bank accounts in order to fund and withdrawal their money from casinos and bookies.

[OsaiEmma]

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.

Stake already fully complied with the regulation implemented on Brazil, and they also paid significant fees for that. So a sudden ban by Lula is unfair for any of casino that operated legally like stake. No doubt it's a huge lose for the platform because they already fulfilled what government demanded from them.
Apart from that Brazil received close to the $500m from january - august 2026. They made huge sum of money from gambling tax. This is why court gave stake more time to operate their platform, which is fair. yet their future may be depending on the result from election and congress whether to continue to allow gambling or doing a complete ban on it.

But, why did stake go to court for this in the first place? This MP affected every single gambling site, and them taking legal action to reverse the ban just on them will certainly cause an uproar, because that will be unfair to others.

Yeah, no doubt, they've invested heavily—paid all the stipulated amount for licencing, and fees; met with every compliance etc—but this alone won't be enough to detar the MP on them. And besides, they're not the only one who has invested heavily.

But them having a temporary injunction means they had a good case, and this injunction was due to the fact that the MP stated a period of 30 days to cease operations. Meanwhile, Lulu ordered the minister of justice to block all online casinos within 10 days: I think this argument gave them that temporary injunction.

[Goasvuean]

a court win is one thing, but the practical impact depends on what the ruling actually covers and whether further restrictions apply.

[Die_empty]

But, why did stake go to court for this in the first place? This MP affected every single gambling site, and them taking legal action to reverse the ban just on them will certainly cause an uproar, because that will be unfair to others.

Yeah, no doubt, they've invested heavily—paid all the stipulated amount for licencing, and fees; met with every compliance etc—but this alone won't be enough to detar the MP on them. And besides, they're not the only one who has invested heavily.

But them having a temporary injunction means they had a good case, and this injunction was due to the fact that the MP stated a period of 30 days to cease operations. Meanwhile, Lulu ordered the minister of justice to block all online casinos within 10 days: I think this argument gave them that temporary injunction.

Every individual or organisation has the right to seek redress in court if they believe their rights have been infringed. Stake went to court to get a judgement that will make them operate till the end of their licence period. I think this is a just course because it was thesame government that issued the operational licence to them. Why the sudden ban without sufficient grace period to reorganise thier business in Brazil? Stake also has the financial capacity to cover the cost of litigation. Other casinos might not have enough money to seek redress in court.

[swogerino]

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.

I would also consider a casino no matter how powerful this is to be winning against a government, even small countries you cannot do anything to overturn a result let alone a big country like Brazil. If they want to spend money on lawyers and legal battles it is their choice to do so but most likely this will still remain a lost cause for Stake unless a massive change happens in the government. Even if some other party wins and even if they intend to allow gambling I think they cannot do so after passing some months which is a regulation in almost every legislation in the world.

[SuperBitMan]

But, why did stake go to court for this in the first place? This MP affected every single gambling site, and them taking legal action to reverse the ban just on them will certainly cause an uproar, because that will be unfair to others.

Yeah, no doubt, they've invested heavily—paid all the stipulated amount for licencing, and fees; met with every compliance etc—but this alone won't be enough to detar the MP on them. And besides, they're not the only one who has invested heavily.

But them having a temporary injunction means they had a good case, and this injunction was due to the fact that the MP stated a period of 30 days to cease operations. Meanwhile, Lulu ordered the minister of justice to block all online casinos within 10 days: I think this argument gave them that temporary injunction.

Every individual or organisation has the right to seek redress in court if they believe their rights have been infringed. Stake went to court to get a judgement that will make them operate till the end of their licence period. I think this is a just course because it was thesame government that issued the operational licence to them. Why the sudden ban without sufficient grace period to reorganise thier business in Brazil? Stake also has the financial capacity to cover the cost of litigation. Other casinos might not have enough money to seek redress in court.

Yes, every individual has the right to go to court when he’s right has been infringed on or when he feeds that the government has broken their apart of their promise or agreement.
The issue here is that the government has influence and they will surely make the court to Favour them however, in a well developed country the court will always favour the person that is right.

But the thing is that the government has the right to make any decision that they believe will help in the development and growth of the country and no one can stop them from doing that remember that there responsibility is to take care of the country.

[shinratensei_]

Stake already fully complied with the regulation implemented on Brazil, and they also paid significant fees for that. So a sudden ban by Lula is unfair for any of casino that operated legally like stake. No doubt it's a huge lose for the platform because they already fulfilled what government demanded from them.
Apart from that Brazil received close to the $500m from january - august 2026. They made huge sum of money from gambling tax. This is why court gave stake more time to operate their platform, which is fair. yet their future may be depending on the result from election and congress whether to continue to allow gambling or doing a complete ban on it.

But, why did stake go to court for this in the first place? This MP affected every single gambling site, and them taking legal action to reverse the ban just on them will certainly cause an uproar, because that will be unfair to others.

Yeah, no doubt, they've invested heavily—paid all the stipulated amount for licencing, and fees; met with every compliance etc—but this alone won't be enough to detar the MP on them. And besides, they're not the only one who has invested heavily.

But them having a temporary injunction means they had a good case, and this injunction was due to the fact that the MP stated a period of 30 days to cease operations. Meanwhile, Lulu ordered the minister of justice to block all online casinos within 10 days: I think this argument gave them that temporary injunction.

Yeah i aware of it. So sad stake's return is only last for a day in brazil, and the ban is applied again after appeals by the government. It's due to the reason you mentioned above. it seems we can only wait and see what's gonna be the winner from the election.
If Bolsonaro will win the 2nd round, there will be a chance for the ban by lula to be overtuned, and i hope it's gonna be happen.

[stompix]

~

I would also consider a casino no matter how powerful this is to be winning against a government, even small countries you cannot do anything to overturn a result let alone a big country like Brazil. If they want to spend money on lawyers and legal battles it is their choice to do so but most likely this will still remain a lost cause for Stake unless a massive change happens in the government.

Stake has a problem winning lawsuits and operating legally.
Basically, right now they are banned from operating in most of the EU and the entire Commonwealth, not to mention the US.
Tried their luck with the UK Gambling Commission, it all went to pieces, not to mention the advertising scandal that saw them exit the UK.

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.

Stick it deeper you might reach the Ileocecal valve!

[lombok]

I would also consider a casino no matter how powerful this is to be winning against a government, even small countries you cannot do anything to overturn a result let alone a big country like Brazil. If they want to spend money on lawyers and legal battles it is their choice to do so but most likely this will still remain a lost cause for Stake unless a massive change happens in the government. Even if some other party wins and even if they intend to allow gambling I think they cannot do so after passing some months which is a regulation in almost every legislation in the world.

The sovereign power of the rule of law in the state shall always be in charge of establishing the boundary of risky commercial enterprises. Legal disputes with regard to the corporations will usually hit a wall when faced with the absolute power of the government.

Change in political stance will not ensure an immediate softening of the regulations within just a few months' time. The lengthy process in which the new set of regulations is established will come first before gambling facilities can get their licenses.

[Hazink]

Stake already fully complied with the regulation implemented on Brazil, and they also paid significant fees for that. So a sudden ban by Lula is unfair for any of casino that operated legally like stake. No doubt it's a huge lose for the platform because they already fulfilled what government demanded from them.
Apart from that Brazil received close to the $500m from january - august 2026. They made huge sum of money from gambling tax. This is why court gave stake more time to operate their platform, which is fair. yet their future may be depending on the result from election and congress whether to continue to allow gambling or doing a complete ban on it.

That's not a fair judgment Brazil government has rubbed casino operators, assuming the court granted a stake for a few years and not just weeks (according to what I understand from the information). That could have been considered to be fair enough even if it's not up to the license expiration date, but the court's decision is of not much difference from where the country, through their presidency, stands on the issue of gambling legality.

[Davidvictorson]

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?

So in short, gamble at your own risk if you are in Brazil. Another way to look at it is, do not trust any platform right now that says it is still operating in Brazil.

This will be a hard battle for Stake to win. They know it that is why they asked to operate until 2029 when their licence was supposed to expire, but the court only gave them until October 25 because that is the date the MP set, and even that has now been suspended. It is possible that there is still a chance things change if the Supreme Court rules against the MP, but until then I wouldn’t count on it.

Waiting to see what happens next.