Stake temporarily retains its license in Brazil following a federal court ruling

Provisional Measure No. 1.394/2026 has prohibited the exploitation, offering, intermediation, and advertising of betting products in Brazil since early October. As other operators weighed their next steps, Stake single-handedly challenged the order in court and secured a reprieve from a judge in the 9th Federal Civil Court.

Until the end of October, or until a new court ruling is issued, authorities cannot treat Stake’s license as terminated, block its website, or penalise the brand. While its website is back online, 187 licensed and over 13,000 illegal websites have already shut down.

However, there’s an important distinction in the wording of the order. Operators were required to cease their activities by October 6 under the temporary ban on online gambling, while their licenses remain valid until October 25, 30 days after the order was published. Federal government lawyers have already said they will appeal the ruling.

Brazil’s Betting Ban Is Put to the Test

The abrupt betting ban has raised concerns about legal certainty for businesses that invested in the country under the previous rules. New restrictions threaten a significant source of sponsorship income for Brazilian football. 

Brazil’s deadline for players to withdraw funds from their betting accounts has now passed. While $125 million has already been pulled out, operators are still holding around $280 million, which they must transfer to banks responsible for returning the money to players.

Layoffs Have Already Begun

The betting ban is already taking a toll on employment. According to Folha de S.Paulo, job cuts have affected companies including H2Bet, Rivalo, Rei do Pitaco and Ana Gaming, which operates the 7K and Cassino brands. Though Betano and Superbet have reportedly kept their staff so far, more companies are being affected by the shutdown.

The financial fallout for operators doesn’t end there. Brazil’s Attorney General’s Office (AGU) has taken more than a dozen brands to court, seeking $171 million in moral damages in a civil lawsuit.