Brazilian Court Overturns Stake’s Temporary Betting Ban Exemption

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Altay Celikkaya

Content Manager

Updated: 12/10/26

Reading Time: 2 minutes

Brazil’s Federal Regional Court of the 3rd Region (TRF3) has overturned an injunction allowing Stake Brasil to continue operating until 25 October, removing the operator’s temporary exemption from the country’s nationwide betting ban.

The decision, issued on 9 October after an appeal by the Attorney General’s Office (AGU), reverses a lower court ruling that had been granted just a day earlier. It restores Brazil’s betting restrictions to apply to Stake while broader legal challenges remain unresolved.

Brazil’s TRF3 overturns Stake’s temporary operating exemption following a government appeal, reinstating betting restrictions on the operator.

Regulation & Compliance

Key Takeaways From Stake's Court Reversal

TRF3 suspended the injunction that permitted Stake to operate until 25 October.
The AGU argued that allowing one operator to remain active would create regulatory inequality.
The ruling removes Stake’s temporary protection but does not resolve the wider constitutional challenge.
Industry associations continue challenging Brazil’s betting prohibition before the Supreme Federal Court.

TRF3 Backs Government Appeal Against Stake

According to Agência Brasil’s 9 October report, TRF3 President Judge Johonsom Di Salvo accepted the AGU’s appeal against Stake’s temporary operating permission. The court concluded that allowing one betting platform to continue operating while competitors faced restrictions could undermine the government’s nationwide policy.

Judge Johonsom Di Salvo said:

Allowing only one company to remain authorised while others face restrictions creates regulatory asymmetry.

The reversal follows an earlier court decision that granted Stake temporary protection, preserving its operating authorisation until 25 October.

That protection has now been suspended, meaning Stake can no longer rely on the earlier injunction to keep accepting bets. The ruling does not constitute a final judgment on the legality of Brazil’s gambling ban.

Wider Legal Challenges Remain Unresolved

The decision comes as Brazil implements Provisional Measure 1,394/2026, which prohibits fixed-odds sports betting and online casino operations nationwide. The measure underpins Brazil’s betting ban and the industry’s response, requiring operators to cease betting activities and fulfil outstanding regulatory obligations.

Meanwhile, the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) are challenging the measure’s constitutionality before the Supreme Federal Court (STF). Their petitions remain under Justice Luiz Fux.

What the Reversal Means for Operators

For licensed operators, the ruling highlights how difficult it is to secure individual exemptions from a nationwide restriction. The decision also reinforces the operational uncertainty facing betting businesses during the player refund and shutdown process.

While Stake’s temporary protection has ended, the wider constitutional dispute remains unresolved. Further judicial decisions could determine whether operators can challenge the restrictions individually or whether Brazil’s nationwide prohibition will remain enforceable throughout the ongoing proceedings.