Brazilian Court Suspends Stake's Betting Operations as Over R$1 Billion Refunded to Bettors

The Federal Regional Court of the 3rd Region (TRF-3) on October 9, 2026, suspended a previous judicial decision that allowed the online betting platform Stake to operate in Brazil until late October. This suspension, requested by the Advocacia-Geral da União (AGU), halted Stake's temporary operation in the country, which had been permitted until October 25, 2026. The court denied Stake's petition seeking to extend its authorization to operate until December 2029. TRF-3 President Luis Antonio Johonsom di Salvo highlighted concerns that the initial ruling had created an unfair competitive advantage for Stake compared to other betting platforms that remained under government restrictions. This move aligns with President Luiz Inácio Lula da Silva's broader government initiative aimed at eliminating fixed-odds betting and online casinos, a policy that took effect with the revocation of existing betting authorizations in September 2026.

In a parallel enforcement effort, more than R$1 billion in balances from online betting platforms have been returned to users, lowering the outstanding funds owed to bettors from R$1.2 billion to approximately R$159 million. These refunds cover 22.5 million bettors across 70.5 million accounts. Financial institutions are required to complete these reimbursements by October 14, or else Caixa Econômica Federal will step in to manage the payments. Despite significant progress, eight companies have not yet provided necessary data to facilitate refunds, prompting the AGU to prepare legal measures to enforce compliance.

The majority of remaining balances owed are minimal, with 90% of accounts having less than R$1 to be refunded and 97% under R$10. Furthermore, the government has intensified efforts to suppress illegal betting activities, blocking 16,627 illicit websites and demanding removal of nearly 3,700 digital pages and social media profiles. Platforms targeted include Telegram and TikTok, which harbor a combined audience of over 18.9 million users involved in unauthorized betting communities.

These judicial and administrative actions underscore Brazil's rigorous stance against unregulated online gambling, reinforcing the government’s commitment to ensure fairness, consumer protection, and adherence to regulatory standards in the betting sector.