A federal appeals court in Brazil has suspended an injunction that briefly allowed Stake to accept bets during a nationwide ban on online gambling. Judge Johnsom di Salvo of the 3rd Regional Federal Court (TRF3) reversed the lower court's decision one day after it was issued, following a request from the federal prosecutor's office.
On October 8, a federal court in São Paulo had partially granted Stake's petition, permitting the operator to take bets until October 25, 2026, despite provisional measure MP 1,394/2026. The prosecutor's office argued that allowing one operator to function while others remain blocked creates market inequality. Di Salvo agreed, noting that an exception for Stake could encourage other operators to seek similar relief through the courts, undermining regulatory effectiveness. Consumer protection was also cited as grounds for reversal.
Provisional measure MP 1,394/2026, signed by President Lula da Silva on September 25, prohibits betting and online casino operations across Brazil. Its constitutionality is being challenged in three cases before the Supreme Federal Court (STF) — 8,024, 8,027 and 8,028. Di Salvo said that piecemeal judicial exceptions before the STF rules create legal uncertainty.
Stake Brasil told customers on October 10 that bets settled before October 9 will be paid out as normal, open wagers will be voided with stakes refunded, and account balances will be automatically transferred to the bank details linked to each player's tax number. Search data shows demand for iGaming in Brazil fell 20.1% after the measure took effect.
