Brazil appeals court revokes Stake injunction against fixed-odds gambling ban

A federal appeals court in Brazil has suspended an injunction that had allowed Stake to continue operating until 25 October despite the nationwide ban on fixed-odds gambling. The Federal Regional Court of the 3rd Region granted the federal government's request to suspend the earlier ruling by São Paulo's 9th Federal Civil Court, according to the report. The suspension remains in force until the original case concludes or the court issues another decision.

The appeals court acted on 9 October, a day after the São Paulo court's decision. The Attorney General's office, which challenged the injunction, argued that it gave Stake an unfair market advantage. The appeals court agreed that allowing the company to remain active could cause regulatory inequality, lead to inconsistent application of government policy and encourage other operators to pursue similar legal avenues. The court did not examine the merits of Stake's lawsuit or the constitutionality of the government's provisional measure, the report said.

The dispute follows a September provisional measure by President Lula banning all forms of fixed-odds gambling, which forced companies to shut down their services, including local operators active in Brazil for years. Stake challenged the measure in court in an attempt to preserve its business and keep its federal gambling licence. The report said the legal gambling market remains in limbo, with it unclear whether the provisional measure will remain in place.

According to the report, the Attorney General's office has petitioned Supreme Federal Tribunal Justice Luiz Fux to turn down every legal challenge to the ban and to refuse compensation claims from operators. Lawmakers in Brazil's Congress are due to examine the provisional measure, but given the legislative calendar the matter could stay open into 2027. The report added that betting companies, sports clubs and broadcasters face substantial losses, and that Stake's path back to the market now depends on circumstances it cannot directly influence.