Brazil Betting Ban Reaches Stake After 9 October Ruling
BRAZIL · JUSTICE
Key Facts
- —The country Brazil, Latin America’s largest economy, banned online sports betting and casino games by emergency decree on Friday, 25 September.
- —What happened On Friday, 9 October, a federal appeals judge in São Paulo suspended an order that let the bookmaker Stake keep operating.
- —Why it matters The judge said leaving one company authorised while rivals obey the ban was unequal, so the Brazil betting ban again covers every licensed bookmaker.
- —The US link FanDuel owner Flutter, listed in New York, stopped operating in Brazil and expects about US$70 million less 2026 revenue.
- —The money Stake told the court it paid R$30 million (about US$6 million) for a licence meant to run until 2029.
- —What it means for you No sports-betting or online casino site may serve anyone in Brazil, residents or visitors, even if the operator is based abroad.
- —Still open Whether Stake appeals, when the Supreme Court rules, and whether Congress confirms the decree within its legal deadline.
The Brazil betting ban, which has already shut the Brazilian business of FanDuel owner Flutter, applies to every licensed bookmaker again. On Friday, 9 October, an appeals judge in São Paulo suspended the order that let the bookmaker Stake keep operating, Agência Brasil reported.
Stake had won the right a day earlier to stay online until 25 October, the day of Brazil’s presidential runoff. Flutter, listed in New York, has told US investors the shutdown could cut its 2026 revenue by about US$70 million.
What the Appeals Judge Decided
The ruling came from Judge Luis Antonio Johonsom di Salvo, Folha de S.Paulo reported. He presides over the Federal Regional Court of the 3rd Region (TRF3), the federal appeals court for São Paulo and Mato Grosso do Sul.
He acted on an appeal by the Attorney General’s Office (AGU), the federal government’s legal arm, which announced the result on Friday. The AGU had said on Thursday that it would fight the order, Folha noted.
Letting one company work while all others face the restrictions creates “regulatory asymmetry” that can affect how the policy is carried out, the judge wrote. The ban itself is being challenged separately at the Supreme Federal Court, Agência Brasil noted.
Stake did not respond to a request for comment from Folha on Friday. Founded in 2017 and headquartered in Curaçao, Stake held about 1% of Brazil’s legal betting revenue, according to Folha.
Why Stake Won a Brief Reprieve
On Thursday, 8 October, Stake Brazil Ltda. won a partial injunction from the 9th Federal Civil Court of São Paulo, Diário de Pernambuco reported. Judge Cristiane Farias Rodrigues dos Santos ordered that its licence not be treated as cancelled before 25 October.
Stake had asked to operate until 31 December 2029, the end of its original licence. The judge refused, writing that there was not enough certainty “to guarantee full continuity until 2029.”
Stake told the court it had invested more than R$128 million (about US$25.5 million) in Brazil. It also said it paid R$30 million (about US$6 million) for its licence, Diário de Pernambuco reported.
The order came with strings attached: no new promotions, no sign-up bonuses and no steps to grow its customer base, ICL Notícias reported. Withdrawals had to keep working, and customer balances had to be preserved.
How the Brazil Betting Ban Works
President Luiz Inácio Lula da Silva of the left-wing Workers’ Party imposed the Brazil betting ban through Provisional Measure 1,394, published on 25 September. A provisional measure is a decree that takes effect at once but lapses unless Congress confirms it.
The measure bans running, offering, brokering and advertising fixed-odds bets, online or in person, “including when carried out by an agent based abroad.” Existing licences end 30 days after publication, which falls on 25 October, with no refund of licence fees.
Under the measure, Anatel, the national telecoms regulator, was to take betting sites offline from the first minute of Tuesday, 6 October, Folha reported. After the withdrawal deadline, the accounts of 26.5 million bettors still held R$1.32 billion (about US$263 million), the Finance Ministry said, g1 reported.
Two industry groups have asked the Supreme Federal Court (STF) to strike the measure down, Agência Brasil reported. They are the National Association of Games and Lotteries (ANJL) and the Brazilian Institute for Responsible Gaming (IBJR).
Justice Luiz Fux, one of the court’s 11 judges, is handling the case. The AGU, in turn, has asked Fux to keep the Brazil betting ban in force while the challenges are heard.
Why US Investors Are Watching
Flutter Entertainment, whose shares trade in New York and whose brands include FanDuel and Betnacional, has already paid a price. In a filing with the US Securities and Exchange Commission on 28 September, it said it had “ceased operating sports betting and iGaming in Brazil.”
If Flutter Brazil cannot operate for the rest of 2026, revenue should fall by about US$70 million, the company said. Adjusted EBITDA, a measure of operating profit, would drop by about US$20 million.
The Brazilian unit carried US$539 million of goodwill on Flutter’s books at the end of the second quarter. Goodwill is the premium paid for a business above the value of its identifiable assets.
Flutter said it was reviewing all options, including a possible appeal. It expects to resume Brazil sports betting and casino games if Congress rejects the measure.
The decree also obliges app stores and operating-system providers, such as those run by Apple and Google, to block banned betting products. Breaches can bring fines of up to 10% of a group’s Brazilian revenue.
What It Means for You
For travellers, the Brazil betting ban covers any sports-betting or online casino site offered to people in Brazil, including operators based abroad. Banks and payment firms may not process such bets, except to wind them down and refund players.
Under the decree, money left on licensed Brazilian sites goes back to players, and open bets are cancelled with a full refund. Banks and payment firms must return balances, preferably to the account the money came from.
For investors, Flutter has put a figure on what the Brazil betting ban costs a US-listed company. It has said its Brazil business would restart if Congress rejects the decree.
What Is Not Known
Stake has not said publicly whether it will challenge the appeals ruling. Officials have not said whether its site has gone offline since Friday.
It is also unclear when Fux will rule. He has signalled that a decision on the measure will come only after the 25 October runoff, Folha reported on 8 October.
The measure still needs approval from Congress to stay in force. Flutter told investors that lawmakers must approve or amend it within 120 days for it to remain in effect.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
What did the Brazilian court decide on 9 October?
The president of the federal appeals court in São Paulo suspended an injunction that let Stake keep operating until 25 October. The Brazil betting ban therefore applies to Stake like every other licensed operator.
Why does Brazil ban online betting now?
President Lula’s government banned fixed-odds betting and its advertising by provisional measure on 25 September, citing household debt and gambling addiction. Licensed sites had to go offline from 6 October, and all licences end on 25 October.
Does the Brazil betting ban affect American companies?
Yes. Flutter, the New York-listed owner of FanDuel, stopped operating in Brazil and expects about US$70 million less revenue in 2026 if the ban holds.
Can a tourist bet online while visiting Brazil?
Not through any lawful site. The decree bars every operator, including those based abroad, from offering sports bets or casino games in Brazil, and banks may not process them.
Can the ban still be overturned?
Yes. Congress must confirm the provisional measure, and the Supreme Court is weighing industry challenges that Justice Luiz Fux has yet to decide.
Sources: Presidency of Brazil, Provisional Measure 1,394 of 25 September 2026, 25 September 2026; Agência Brasil, AGU says TRF3 overturned Stake injunction, 9 October 2026; Flutter Entertainment, Form 8-K Exhibit 99.1 (US SEC), 28 September 2026; Folha de S.Paulo (C-Level), TRF3 suspends Stake injunction, 9 October 2026; Folha de S.Paulo (C-Level), Stake wins delay until 25 October, 8 October 2026; Diário de Pernambuco, court guarantees Stake operation until 25 October, 8 October 2026; ICL Notícias, court lets betting house operate despite MP, 8 October 2026; g1, balances left in bettors’ accounts after deadline, 6 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief