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Stake's Operation in Brazil: A Temporary Reprieve Cut Short

By jili tutorial · October 12, 2026

Stake’s Operation in Brazil: A Temporary Reprieve Cut Short

The story of Stake’s provisional permission to operate in Brazil has taken a dramatic turn, leaving the company’s legal status in limbo. This comprehensive guide delves into the events, legal battles, and implications of this unfolding saga.

The Initial Permission: A Glimmer of Hope for Stake

Last week, Stake received provisional permission to continue its operations in Brazil until 25 October 2023. This decision was granted by Judge Rodrigues dos Santos of the 9th Federal Civil Court of São Paulo, making Stake the sole licensed operator permitted to remain active in the country. This ruling came in the wake of President Lula’s executive order to ban all forms of gambling, effective 25 September 2023.

The permission was seen as a rare win for Stake, especially as it positioned the company as a de-facto national monopolist in the short term. However, this victory was short-lived.

The Appeal: Stake’s Permission Revoked

The provisional permission was swiftly challenged, leading to its suspension by Judge Di Salvo of the Federal Regional Court. The court overseeing the case ruled that allowing only one company to operate while others faced restrictions created a regulatory asymmetry. This asymmetry, according to the court, posed a risk to the administrative order and the implementation of public policy.

“The circumstance that only one company remains authorised to regularly exercise economic activity while the others submit to the restrictions established by the Public Power shows regulatory asymmetry capable of affecting the execution of the public policy implemented, characterising risk to the administrative order.”

This decision effectively nullified Stake’s provisional permission, leaving the company in the same position as other licensed operators—barred from conducting business in Brazil.

The Broader Context: Brazil’s Gambling Ban

President Lula’s gambling ban has sparked significant backlash from both domestic and international stakeholders. The ban, which came into force on 25 September 2023, has been criticized for its abruptness and its impact on the regulated gambling industry.

Licensing and Investments:

Since being permitted to enter Brazil in 2024, licensed gambling operators have invested millions of dollars in compliance and infrastructure. Many companies hold five-year licenses issued by the Secretariat of Prizes and Bets (SPA), the country’s gambling regulator. The sudden ban has left these investments in jeopardy.

Trade Bodies and Opposition:

Two prominent trade bodies—the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gambling (IBJR)—have been vocal in their opposition to the ban. They argue that Lula’s decree undermines the legislative framework established two years ago, which guaranteed licensed operators multi-year licenses and market access.

While the specifics of the appeal remain undisclosed, it is plausible that complaints were lodged by the Attorney General’s Office (AGU) and the Federal Public Prosecutor’s Office (PGR). Both institutions have consistently supported President Lula’s gambling ban, aligning with the administration’s stance on the issue.

What’s Next? The Role of Brazil’s National Institutions

The ultimate fate of Brazil’s gambling industry lies in the hands of its National Congress and, potentially, the Supreme Court. Both institutions retain the authority to deliberate on the matter after the current Presidential election cycle concludes on 25 October 2023.

Stakeholders’ Perspectives:

The revocation of Stake’s provisional permission underscores the complexity of Brazil’s gambling regulations and the contentious nature of President Lula’s ban. As legal battles continue, the gambling industry remains in a state of uncertainty, awaiting final decisions from Brazil’s highest institutions.