The president of Brazil's Federal Regional Court of the 3rd Region (TRF-3), Judge Luis Antonio Johonsom di Salvo, has suspended a recent ruling that allowed betting company Stake to continue its operations until October 25. This action came on Friday in response to a request from the Attorney General's Office (AGU). The judge overturned a preliminary injunction issued by Federal Judge Cristiane Farias Rodrigues dos Santos just a day earlier, which had permitted Stake to keep operating until late October.
As a result of this suspension, Stake’s betting services are once again barred in Brazil. The AGU's appeal argued that the earlier injunction provided Stake with an unfair competitive advantage over other betting companies. The judge agreed, stating that the order created an imbalance in regulatory enforcement and could prompt other companies to request similar favorable decisions.
The ruling emphasized concerns about potential harm to public order, noting that the authorization for Stake to operate could lead to regulatory disparities. “In this case, I consider the evidence of serious harm to administrative public order to be sufficiently established,” the decision stated.
While Stake expressed its opposition to the AGU's request during the TRF-3 proceedings, the court sided with the AGU. Furthermore, the injunction granted to Stake was only a partial one. The company also sought permission to operate until December 31, 2029, but this request was denied by the 9th Federal Civil Court of São Paulo.
The suspension will remain in effect until a final decision is made regarding the matter or until another ruling is issued by the court’s leadership. Consequently, the TRF-3's latest ruling effectively removes Stake's ability to continue operations for another 16 days.
With the court’s decision, federal authorities are now authorized to take action against Stake, implementing measures to restrict and block the company's activities. This follows a provisional measure announced by President Luiz Inácio Lula da Silva at the end of last month. Judge Johonsom di Salvo remarked that allowing Stake to operate would create an uneven regulatory environment and could jeopardize the consistent application of public policy. He further highlighted the necessity of protecting consumers due to a lack of transparency in online gambling operations.
The ruling does not address the fundamental merits of the case or determine the constitutionality of the provisional measure, which is currently under scrutiny by two leading gambling trade organizations in Brazil at the Supreme Federal Court.
