Brazil Appeals Court Suspends Stake's Injunction After One Day

Brazil Appeals Court Suspends Stake's Injunction After One Day

A Brazilian appeals court has suspended the injunction that let Stake keep its betting site running in the country, cutting short the operator's return to the market after barely a day.

The Federal Regional Court of the 3rd Region (TRF-3) suspended the injunction on October 9, 2026, a day after it was granted, following a request from Brazil's Attorney General's Office (AGU). 

The injunction had allowed sports betting site Stake Brazil Ltda to keep operating fixed-odds betting online until October 25, 2026, despite restrictions imposed under Provisional Measure 1394/2026, Brazil's online betting ban. 

It was originally granted by federal judge Cristiane Farias Rodrigues dos Santos of the 9th Federal Civil Court of Sao Paulo.

Court Cites Regulatory Inequality

TRF-3 President and appellate judge Johonsom Di Salvo, who delivered the suspension, accepted the AGU's argument that letting a single operator continue while others faced restrictions under the same provisional measure would create regulatory inequality and undermine the uniform application of a nationwide public policy. 

The decision also pointed to a risk that similar rulings could multiply, progressively weakening enforcement of the measure and generating legal uncertainty across the betting industry, as well as consumer protection concerns over transparency in how Stake's games function.

The ruling leaves Stake's Brazilian operations in the same position as other operators affected by the provisional measure, which introduced a national framework restricting online betting providers. 

The constitutionality of Provisional Measure 1394/2026 itself remains under review at Brazil's Supreme Federal Court (STF), via three pending Acoes Diretas de Inconstitucionalidade, ADIs 8024, 8027 and 8028, meaning Thursday's brief reprieve and its reversal are unlikely to be the final word on the measure's legal standing.


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Suspension Holds Until The Case Is Settled

According to the ruling, the effects of the original São Paulo injunction remain suspended until the underlying case reaches a final judgment or TRF-3's presidency issues a further decision, rather than for a fixed period. 

The court framed its decision as upholding the "uniformity of administrative action, legal certainty and the effectiveness of federal measures" behind the betting restrictions, siding with the AGU's position that the case was about consistent enforcement of national policy rather than the specifics of Stake's own operations.


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One Day From Injunction To Reversal

The episode marks the second rapid reversal in Stake's Brazilian legal battle in as many months, after the operator secured and then lost separate court permissions tied to the same underlying ban. 

For now, Stake Brazil Ltda is subject to the same restrictions as other betting operators under Provisional Measure 1394/2026, with no operator-specific exception in place following TRF-3's ruling. 

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