Home Gambling RegulationsBrazilian Court Overturns Stake’s Operating Injunction

Brazilian Court Overturns Stake’s Operating Injunction

by Sienna Marques
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Brazilian Court Overturns Stake's Operating Injunction

The president of Brazil’s Regional Federal Court of the 3rd Region (TRF3) has rescinded an injunction that previously allowed Stake to continue its operations in the country following the implementation of an online gambling ban. Judge Johonsom Di Salvo made this ruling after the Union highlighted that the injunction posed "serious harm to public order" and could potentially create a ripple effect across the gambling industry.

The original injunction, which was issued just one day earlier, came from federal judge Cristiane Farias Rodrigues dos Santos of the 9th Federal Civil Court of São Paulo. The Union's petition to the TRF3 argued that the injunction unfairly favored a single operator, undermining a nationwide public policy and potentially encouraging other operators to file similar legal challenges.

Judge Di Salvo supported the Union’s assertions, stating that the Provisional Measure was intended to be uniformly applicable to all operators within the gambling sector. He emphasized that the prohibition is aimed at safeguarding consumers and gamblers.

However, the ruling does not address the primary concern raised by the lower court regarding the Provisional Measure's stipulation of a 30-day cancellation period for authorization, a time frame that the Administration cannot foresee. It also does not discuss the twelve conditions imposed on Stake meant to mitigate any “reverse danger” to bettors. While the ruling mentions the potential for a multiplier effect, it does not indicate any ongoing actions related to this danger.

In light of the voiding of the injunction, the website stake.bet.br is now directed to the Ministry of Justice and Public Security, as outlined in the Provisional Measure. The president of TRF3 has instructed that the lower court be notified without delay. The case remains under the jurisdiction of the 9th Court, where relevant information is expected to be gathered from authorities including SPA/MF, Anatel, and the Central Bank. The Federal Public Prosecutor will subsequently provide an opinion on the matter. Additionally, there is an option to appeal the decision made by the presidency to the extended composition of TRF3.

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