The Federal Regional Court of the 3rd Region (TRF-3) has suspended the recent decision that permitted Stake to continue its operations in Brazil until October 25. Judge Luis Antonio Johonsom di Salvo made this ruling on Friday, responding to a request from the Attorney General's Office (AGU). This decision overturns a preliminary injunction issued the previous Thursday by Federal Judge Cristiane Farias Rodrigues dos Santos, which had allowed Stake to operate until late October.
With this ruling, Stake’s betting operations are once again halted in the country. The AGU had contended that the earlier injunction provided Stake with an undue advantage over other betting companies, thus creating an unfair competitive landscape. The judge recognized these concerns and stated that the authorization could lead to disparities in regulatory adherence, potentially prompting other companies to seek similar injunctions.
"In this case, I consider the evidence of serious harm to administrative public order to be sufficiently established," the ruling said.
Although Stake had opposed the AGU's request to TRF-3, its objections were not upheld. The initial injunction granted to Stake had been partial; a request to continue operations through December 31, 2029—aligning with the expiration of its original license—was rejected by the 9th Federal Civil Court of São Paulo.
This suspension will remain in effect until the resolution of the matter or until a new ruling is issued by the court’s presidency, effectively removing Stake's ability to operate for another 16 days.
Following this latest ruling, federal authorities are empowered to implement restrictions and block Stake's operations, as outlined in the provisional measure announced by Brazilian President Luiz Inácio Lula da Silva late last month. Judge Johonsom di Salvo stated that allowing Stake to continue its operations would lead to regulatory inconsistencies and hinder the uniform application of public policy.
In his decision, the judge highlighted the necessity of protecting bettors amid concerns over the transparency of online gambling operations. Notably, the ruling does not delve into the core issues of the case nor does it determine the constitutionality of the provisional measure, which is currently challenged by two key gambling trade associations before Brazil's Supreme Federal Court.
