Stake to contest Brazilian federal court reversal of betting ban injunction
The operator will challenge a TRF-3 ruling that struck down its interim permission to continue operating in Brazil following President Lula's betting ban.
- TRF-3 President Judge Luis Antonio Johonsom di Salvo revoked Stake's preliminary injunction one day after it was granted.
- The Attorney General's Office sought the suspension, arguing the injunction handed Stake an unfair advantage over competitors.
- The legal battle follows President Lula's provisional measure banning licensed betting, which has prompted 3,500 layoffs and a constitutional challenge.
Stake has confirmed plans to appeal against a ruling by a Brazilian federal court that overturned a preliminary injunction allowing the operator to circumvent a national ban on licensed betting. The operator's decision comes after the Federal Regional Court of the 3rd Region (TRF-3) set aside an interim ruling that had granted the company legal permission to maintain services in the country.
The operator had originally secured a preliminary court order granting it the right to continue trading until 25 October. That legal shield was rapidly dissolved when Judge Luis Antonio Johonsom di Salvo, the president of TRF-3, issued an order suspending the injunction just one day after it had been approved.
AGU Intervention and Competitive Arguments
The intervention at the federal appellate court followed a direct request from Brazil's Attorney General’s Office (AGU). In its submission, the AGU argued that granting Stake temporary relief placed the operator at an unfair competitive advantage in comparison to the rest of the market, which remained subject to the shutdown. Stake is pursuing its legal remedies via the law firm Bichara e Motta Advogados, which acts as the operator's legal representative in Brazil.
The initial court-mandated deadline of 25 October directly aligned with the broader political calendar, with the second round of Brazil’s national elections scheduled to take place on that day.
Fallout from Executive Ban
The court dispute forms part of a wider sector crisis sparked in late September, when Brazilian President Luiz Inácio Lula da Silva introduced a provisional measure that prohibited licensed betting. The executive directive brought a halt to a regulated domestic betting framework that had opened only months earlier, having officially launched on 1 January 2025.
Resistance to the executive order extends beyond individual operators. Two Brazilian gambling trade associations have jointly lodged a motion before the Supreme Federal Court (STF), challenging the constitutionality of the government’s provisional betting ban.
Workforce Redundancies and Market Demands
The regulatory intervention has produced rapid consequences for the domestic industry's workforce. According to a partial survey conducted by the National Association of Games and Lotteries, more than 3,500 staff members have been laid off across Brazil's betting sector since President Lula enacted the provisional measure in late September.
The sector's curtailment comes after companies complied with onerous commercial and regulatory criteria to qualify for licensing ahead of the January launch. Authorisation required operators to pay a BRL30 million ($6 million) licence fee and set aside a minimum financial reserve of BRL5 million. Additionally, foreign entities were compelled by statutory guidelines to maintain a corporate headquarters within Brazil.
Stake's forthcoming appeal through Bichara e Motta Advogados proceeds as the wider gaming sector awaits further determinations from both the regional federal courts and the STF regarding the legality of the state's provisional prohibitions.
