Stake Wins Historic Court Injunction Against Brazil’s Gambling Ban

The Brazilian gambling landscape is currently facing a significant legal upheaval. Stake Brazil has achieved a notable victory in a federal court in São Paulo. While the government under President Lula attempts to curb the sector with drastic measures, a judge ruled that authorities acted too hastily in enforcing the ban. The shutdown of the website has been temporarily reversed, granting Stake a grace period until October 25.

This date is no coincidence, as it marks the day of the presidential runoff election. The judge argued that the government disregarded its own deadlines. While Provisional Measure 1,394 stipulates that licenses expire after 30 days, authorities ordered the redirection of the Stake domain to a government page as early as October 6. This overzealousness met with resistance from the judiciary, as the company had received an official authorization in February 2025, which was originally intended to be valid until the end of 2029.

Numbers and facts

The dimensions of the case are immense. Stake stated in court that it paid a license fee of 30 million R$ and invested an additional 128.2 million R$ in operations, compliance, and infrastructure. The company employs 41 people in Brazil. As of September 23, the operator managed 508,084 player wallets, of which 224,566 had a positive balance. A total of 3.69 million R$ was available for withdrawal.

However, the preliminary injunction is tied to strict conditions. Stake is not allowed to launch any new promotions or bonuses to expand its user base. Furthermore, rigorous controls for identity verification and anti-money laundering must be maintained. Most notably, individuals receiving funds from social programs must be consistently blocked. The judge made it clear that the public interest must be weighed against the trust created by the state in its own authorizations.

Background

Brazil's Ministry of Justice had attempted to radically clear the market. In doing so, licenses from 85 companies operating a total of 186 brands were effectively devalued overnight. The association ANJL, representing 32 of these operators, has also initiated legal action. They accuse the government of violating entrepreneurial freedom and legal certainty. The government counters with lawsuits against 17 operators, seeking at least 1 billion R$ in damages for social and health costs caused by gambling addiction.

„An authorization granted after a paid application process gives its holder an individualized legal position that cannot be removed without weighing the public interest against the trust the state created.“ - Cristiane Farias Rodrigues dos Santos, Federal Judge at the 9th Federal Civil Court in São Paulo

The decision currently only affects Stake. Other providers must still expect to be shut down by October 25 unless they obtain their own rulings. The Attorney General’s Office (AGU) has already announced that it will appeal the decision before the Federal Regional Court of the 3rd Region.

Why it matters for German players

For German players, this case primarily demonstrates one thing: legal certainty is a paramount asset. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) regulates the market. Anyone wishing to play safely in this country should exclusively choose providers listed on the official whitelist of the Joint Gambling Authority of the States (GGL). These casinos guarantee protection through the LUGAS system, which monitors the monthly deposit limit of 1,000 euros across all providers.

Brazil is currently experiencing regulatory chaos reminiscent of the times before the GlüStV 2021 in Germany. While sites there are now being blocked overnight, players in GGL-licensed casinos in Germany enjoy protection through the OASIS exclusion system and the strict stake limit of 1 euro per spin for online slots. Such chaotic conditions as in South America are virtually impossible due to clear German legislation.

What it means for GGL-licensed casinos

For operators with a German license, the situation in Brazil underscores how vital a cooperative relationship with the supervisory authority is. While Stake in Brazil fears for investments exceeding 128 million R$, the German market offers a reliable, albeit strictly regulated, basis through the GGL. Compliance with player protection measures is not an option in Germany but a prerequisite for market access. The Stake case also serves as a reminder to German companies to meticulously document compliance processes to be legally prepared in the event of political shifts.