Brazil enters a new phase of the betting crisis with Stake out of the game, 3,500 layoffs and the open battle in Congress and the Supreme Court

The online gambling situation in Brazil continues to get complicated just two weeks after the approval of Provisional Measure 1.394/2026, which prohibited the exploitation, offer, intermediation and advertising of fixed-odds bets throughout the country.

The latest development is a major setback for Stake. The platform had obtained a court ruling on October 8 that allowed it to continue operating until October 25, becoming the first major judicial crack in the closure of the regulated market, as reported by INFOPLAY.

However, that victory has been short-lived.

The Federal Regional Court of the 3rd Region (TRF3) has revoked the injunction allowing Stake to operate after an appeal filed by the Attorney General's Office. The court found that allowing a single platform to continue operating while the others were subject to the ban would create a regulatory asymmetry incompatible with the public policy put in place by the government.

The decision completely modifies the scenario that INFOPLAY advanced on October 9, when Stake had managed to provisionally maintain its authorization despite the new ban.

While the legal battle continues, the labor consequences are beginning to take on a considerable dimension.

A survey by the National Association of Games and Lotteries (ANJL) already puts the number of workers dismissed since the publication of the Provisional Measure at more than 3,500. The figure represents approximately 23% of the workforce of the companies participating in the study.

Another 4,167 employees are on collective vacation, which brings to about 7,600 the professionals directly affected by the market stoppage. If the situation continues, the ANJL estimates that the layoffs could reach 5,600 within 90 days.

The impact is not limited to the operators themselves either. The reduction in activity is beginning to reach technology providers, marketing agencies, affiliates, event companies and other services linked to betting, while some companies have already begun to reduce structures.

At the same time, the political procedure remains open.

Provisional Measure 1.394/2026 is now in the National Congress, where the deadline for submitting amendments remains open until October 13. The law has a deliberation period until November 23 and will enter into a parliamentary emergency regime from November 9 if it has not been resolved before.

This means that, although the ban is already taking effect, its final configuration may still change during the parliamentary process.

In parallel, the decisive front before the Supreme Federal Court (STF) continues. The ANJL and the Brazilian Institute of Responsible Gaming (IBJR) have challenged the ban and are demanding the suspension of the Provisional Measure. The proceedings are under the responsibility of Minister Luiz Fux.

The Attorney General's Office, on the other hand, has asked the Supreme Court to maintain the ban, defending the Government's decision for reasons of public health, economic protection of families and prevention of problems associated with gambling.

While this standoff is being resolved, the licensed operators have withdrawn their platforms and the process of returning funds belonging to players is underway.

INFOPLAY has already reported that companies must identify outstanding balances, affected bettors and bank accounts necessary to make refunds, while the financial and regulatory obligations arising from the closure will last until December. SEE INFOPLAY INFORMATION

The sector's response has also reached football. Under messages such as "Proibir não é proteger" and "Não se muda a regra no meio do jogo", the industry has taken its protest to Brazilian stadiums to warn that closing the regulated market can move players to illegal platforms. INFOPLAY reported on this campaign.

Brazil is thus in an exceptional situation: the regulated market is closed, a first court victory by Stake has been annulled, thousands of workers have already lost their jobs, the Supreme Court is studying the constitutionality of the measure and Congress can still modify its content.

And all this less than two weeks before the presidential runoff on October 25, which INFOPLAY has already analyzed as a particularly relevant moment to determine which model of online gambling may end up prevailing in one of the most important markets in Latin America. SEE INFOPLAY ANALYSIS.