The Federal Regional Court of the 3rd Region (TRF-3) has overturned its previous decision that permitted Stake to continue its operations in Brazil until October 25. This reversal was executed on Friday by Judge Luis Antonio Johonsom di Salvo after a request from the Attorney General's Office (AGU). It effectively blocked Stake's operations in the country once more.
The AGU contended that the prior injunction provided Stake an unfair competitive edge over other betting companies. Judge Johonsom di Salvo acknowledged these concerns, addressing that the authorization could foster inequality among competitors and motivate them to pursue similar legal actions. "In this case, I consider the evidence of serious harm to administrative public order to be sufficiently established," stated the ruling.
Stake had opposed the AGU's request to the TRF-3 but was unsuccessful. Although Stake originally sought a full injunction to extend its operations until December 31, 2029, the 9th Federal Civil Court of São Paulo only granted them partial permission, which was ultimately annulled by the TRF-3 decision.
Now, the suspension is effective until the conclusion of legal proceedings or a new ruling from the court. This new TRF-3 measure nullifies the possibility for Stake to operate for an additional 16 days.
Consequently, federal authorities are authorized to implement restrictions against Stake as detailed in the provisional measure announced by Brazilian President Luiz Inácio Lula da Silva last month. Judge Johonsom di Salvo remarked that allowing Stake to operate would create regulatory imbalance. He underlined the need for uniformity in public policy, particularly safeguarding bettors given the inherent lack of transparency related to online gambling operations. The ruling, however, does not address the fundamental merits of the case or the constitutional validity of the provisional measure, which has recently faced scrutiny from leading gambling trade associations before Brazil's Supreme Federal Court.
