Stake Goes Dark in Brazil Again After Court Vacates Temporary Injunction

Stake’s brief return to Brazil’s online gambling market came to a abrupt halt after a federal appeals court overturned an injunction that had temporarily shielded the crypto casino operator from the country’s blackout list.

The decision was issued by the Federal Regional Court of the 3rd Region (TRF-3) following an emergency appeal filed by Brazil’s Attorney General’s Office (AGU).

The reversal came just two days after a São Paulo federal judge granted Stake temporary protection from the ban, allowing it to resume operations until October 25.

At the time, Stake declared the ruling “an important signal” for both the operator and the broader Brazilian gaming sector. However, while Stake’s website and mobile application briefly re-entered service on Oct. 8, they were rendered inaccessible again by Oct. 10.

When Casino.org attempted to access Stake Brazil via a Brazilian VPN, it received a notice saying that operations were suspended.

“On October 8, 2026, a federal court ruling authorized Stake Brazil to resume operations. However, that decision was overturned by the Federal Regional Court of the 3rd Region. As a result, Stake Brazil’s website and app have once again been unavailable since October 10, 2026,” the notice said.

“We sincerely apologize for this situation,” it added.

Exemption Would Undermine Federal Ban, Judge Rules

TRF-3 Judge Luis Antonio Johonsom di Salvo ruled that allowing a single commercial operator to continue taking wagers while competitors remained banned was legally indefensible.

“The fact that only one company remains authorised to regularly carry out economic activity while the others are subject to restrictions established by the Public Authorities demonstrates a regulatory asymmetry capable of affecting the execution of the implemented public policy,” he said.

Brazil’s online betting operators were ordered offline earlier this month as a result of a provisional measure introduced by President Luiz Inácio Lula da Silva.

The AGU has aggressively defended the federal prohibition against a wave of emergency injunctions from operators and trade bodies. Defense attorneys contend the executive branch acted on concrete empirical data gathered since Brazil’s regulated betting framework took effect in 2025—specifically citing rising household indebtedness and problem gambling metrics.

Supreme Court Ruling Awaited After Presidential Election

The long-term status of Brazil’s commercial gaming sector remains highly volatile.

While Supreme Court Justice Luiz Fux is reviewing a constitutional challenge against the provisional measure, he has signaled he will withhold any ruling on suspending the ban until after the upcoming presidential election.

Brazil is set to hold its presidential election runoff on Oct. 25. Political prediction markets currently give opposition candidate Flávio Bolsonaro an 87% chance of defeating incumbent President Lula.

While both political figures have voiced criticism of the industry, Bolsonaro has publicly questioned the abrupt timing of Lula’s shutdown. Bolsonaro has suggested that sports betting and online casino gaming should be subject to separate regulatory models, opening a potential path to a partial market reopening under his administration.

Meanwhile, major economic trade groups are warning of severe fiscal fallout if the prohibition persists.

A recent study by LCA Consultores estimated that the prohibition could put R$73 billion ($14.7 billion) in tax revenue at risk over the next four years.

The research also warned that more than 15,500 jobs could be lost if the ban remains in place.