Stake’s lawyers are preparing a new legal challenge after a Brazilian appeals court reversed the injunction that had briefly allowed the operator to keep taking bets despite the country’s nationwide betting ban. The move keeps alive one of the most closely watched legal fights to emerge from President Lula’s provisional measure banning licensed betting, with implications for every operator and supplier still invested in the market.
What happened
Stake’s lawyers will pursue further legal action after a Brazilian court overturned an injunction temporarily protecting the operator from a betting ban, after it appeared Stake had a reprieve following a preliminary injunction granted the right to continue operations until 25 October.
The next day, Judge Luis Antonio Johonsom di Salvo, president of the Federal Regional Court of the 3rd Region, suspended the injunction, with Stake once again banned.
Stake’s case is being handled by Brazilian law firm Bichara e Motta Advogados, and partner Udo Seckelmann confirmed to iGB that Stake will challenge the decision overturning its injunction.
He said Stake is going to challenge the decision, with two possible strategies under analysis as the firm decides which to file.
Seckelmann acknowledged the importance of the case for the wider Brazil sector as it attempts to wrestle back its legal status.
The legal wrangling sits alongside a parallel track at Brazil’s Supreme Court. Two trade bodies, ANJL and IBJR, have petitioned Justice Luiz Fux to suspend the ban until a new public hearing can be held, with a fallback request to keep licensed operators online until the end of 2026. The ANJL has said more than 3,500 betting-sector workers have lost their jobs since the ban took hold, and Seckelmann has indicated the Supreme Court is unlikely to rule before Brazil’s presidential runoff on 25 October, the same date Stake’s original injunction window was due to expire.
Why it matters
The Brazil betting ban has already forced licensed operators offline and reshaped FY26 forecasts across the sector. A ruling in Stake’s favour, or a broader Supreme Court intervention, would determine whether any licensed brand can resume trading before the ban’s 120-day congressional review period runs its course. A ruling against it would further entrench the shutdown and strengthen the unlicensed market that has grown in its place.
The case also has a supplier dimension. In a separate interview with SBC News, FIRST.bet chief executive Tom Light
described the ban as a hammerblow for operators that had invested in local entities and compliance, but said it could have been an even bigger threat for the suppliers who depend on the market.
That underlines how the fallout extends well beyond the handful of operators with consumer-facing brands in Brazil, hitting platform providers, payment firms and marketing partners that built out local infrastructure since regulation began in January 2025.
The bigger picture
Brazil’s licensed betting sector was worth close to $5.7 billion in net revenue terms before the ban, and its abrupt suspension has already triggered protests from clubs and trade bodies, alongside warnings that the illegal market is filling the vacuum. Stake’s fight to restore its own licence is, in effect, a test case for the rest of the industry: if its challenge succeeds, rivals are likely to pursue similar routes back to market, while a further defeat would push the sector’s hopes firmly onto the pending Supreme Court review.
For affiliates and performance marketers with Brazil-facing portfolios, the uncertainty complicates planning around SEO investment and player acquisition in a market that had been one of the fastest-growing in Latin America. Traffic strategies built around licensed Brazilian brands remain on hold until the legal picture clears, with the Supreme Court’s post-runoff timeline now the key date to watch.
For more on how regulatory shifts are reshaping operator strategy, visit our industry news section.
Sources
- iGaming Business – Stake to challenge reversal of injunction against Brazil betting ban
- SBC News – FIRST.bet CEO reacts to Brazil betting ban and outlines European & African goals
- FairGambling – Stake Will Fight the Ruling That Shut Its Brazil Site
- Casino.org – Stake Forced Offline Again as Brazil Court Overturns Betting Ban Reprieve
- Yogonet – Brazil appeals court overturns Stake injunction two days after operator’s return
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