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São Paulo · Economy

São Paulo federal court strips Stake of right to operate in Brazil

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A São Paulo federal court had let Stake operate until October 25; Judge Di Salvo of the Federal Regional Court suspended that injunction on October 12, escalating Brazil's gambling-ban fight.

Why it matters

Judge Rodrigues dos Santos of the 9th Federal Civil Court of São Paulo last week granted betting operator Stake provisional permission to keep operating in Brazil until October 25, making it the only licensed operator allowed to stay online after the ban took effect. On October 12, Judge Di Salvo of the Federal Regional Court suspended that injunction on appeal, and Stake lost the right again.

The ruling noted that having only one company authorized to operate while all others submit to official restrictions creates a regulatory asymmetry capable of affecting the execution of public policy and poses a risk to the administrative order.

Background

President Lula's order banning all gambling came into force on September 25. The licensed sector entered Brazil in 2024, and many operators hold five-year licences from the Secretariat of Prizes and Bets (SPA) regulator, having invested millions of dollars in compliance. The National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gambling (IBJR) argue that scrapping the regulated regime the government itself signed into law two years ago tramples on legislatively guaranteed multi-year licences and market access.

The Attorney General's Office (AGU) and the Federal Public Prosecutor's Office (PGR) stand firmly behind the ban. The final say on whether the prohibition remains lies with Brazil's National Congress and, ultimately, the Supreme Court, both of which have retained the right to deliberate after the presidential election cycle concludes on October 25.

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