Stake’s Brazil operation has resumed service after winning temporary court protection against a nationwide betting clampdown, allowing the company to bring its local website back online while a legal fight continues.
A federal judge in São Paulo ruled that authorities cannot treat Stake’s license as terminated or block its domain before Oct. 25. The government, however, has said it will appeal, meaning the operator’s return may still be short-lived if a higher court overturns the order.
Judge grants limited injunction
Judge Cristiane Farias Rodrigues dos Santos partly granted an injunction on Oct. 8 in favor of Stake Brazil. The order prevents authorities, for now, from acting as though the company’s license has already ended and from taking steps to block access to its domain.
The decision is tied to transition deadlines in Provisional Measure 1,394, signed by President Luiz Inácio Lula da Silva on Sept. 25. According to the ruling, the measure provides a 30-day window for existing authorizations, which in Stake’s case effectively extends operations through Oct. 25.
Operations allowed, but under 12 conditions
The court reprieve does not amount to unrestricted business as usual. Stake must comply with 12 conditions while operating during the protected period.
Those requirements include maintaining identity checks, age verification, anti-money-laundering procedures, and responsible gambling controls. The company is also barred from accepting bets financed with welfare program funds and cannot run promotions, bonuses, or other user-growth efforts.
In addition, Stake must keep withdrawals available and reserve enough funds to cover player balances, ensuring customers can access their money while the dispute remains unresolved.
Stake returns while most license holders stay offline
Stake Brazil said the ruling marks the first time a licensed operator has obtained this kind of judicial relief under the current betting ban. The company described the outcome as an important signal not only for its own business, but also for operators subject to state oversight.
Even so, the order applies only to Stake. The other 84 license holders remain offline after the ban took effect on Oct. 6, leaving Stake in a distinct position for now.
Appeal could cut the relief short
The protection is temporary and not guaranteed to last until its stated end date. The injunction remains in force until Oct. 25 or until another court order changes the situation.
Brazil’s Attorney General’s Office, the AGU, has already said it plans to appeal. If a regional court suspends the injunction, Stake could be forced offline again before Oct. 25.
Broader legal and political fight continues
The dispute over the measure goes beyond Stake’s case. Challenges to the provisional measure are now before Brazil’s Supreme Court, where the wider legality of the restrictions is being examined.
At the same time, the measure faces a political deadline. Brazil’s Congress must vote on it by Nov. 23, making both the courts and lawmakers central to what happens next for betting operators in the country.
Source: news.bitcoin.com