The Federal Regional Court of the 3rd Region (TRF-3) has put a stop to Stake’s operations in Brazil by reversing a previous court decision on Friday. Judge Luis Antonio Johonsom di Salvo suspended the earlier ruling that permitted Stake to operate until October 25, responding to an appeal from the Attorney General's Office (AGU). This action nullifies a preliminary injunction granted just the day before by Federal Judge Cristiane Farias Rodrigues dos Santos.
As a result of this new ruling, Stake's betting operations are once more prohibited in Brazil. The AGU's argument centered around the idea that the original injunction unfairly favored Stake over other betting firms, creating an uneven playing field. Judge Johonsom di Salvo agreed, noting that allowing Stake to continue operating would lead to inequalities in regulatory enforcement and potentially encourage other companies to seek similar preferential treatment.
In the ruling, the judge stated, "In this case, I consider the evidence of serious harm to administrative public order to be sufficiently established."
Although Stake expressed opposition to the AGU's request and sought to uphold the injunction, their efforts were unsuccessful. They had initially sought permission to operate until December 31, 2029, coinciding with the expiration of their initial license, but this was denied by the 9th Federal Civil Court of São Paulo.
The suspension will remain in place until a final resolution is reached in the case or until a new decision is issued from the court’s presidency. This recent measure from the TRF-3 effectively cuts short the company’s operations by an additional 16 days.
With this ruling, federal authorities can now enforce measures to restrict and block Stake's activities as detailed in a provisional measure announced by President Luiz Inácio Lula da Silva last month.
Judge Johonsom di Salvo highlighted that continuing to allow Stake to operate would disrupt regulatory consistency. He also pointed out the need for bettor protection in light of concerns regarding the transparency of online gambling mechanics. It’s important to note that this decision does not assess the underlying merits of the case nor does it address the validity of the provisional measure, which is being contested by two leading gambling industry associations in Brazil before the Supreme Federal Court.
