The Federal Regional Court of the 3rd Region (TRF-3) has suspended a recent decision permitting Stake to operate in Brazil until October 25. This suspension, ordered by Judge Luis Antonio Johonsom di Salvo on Friday, countered a preliminary injunction issued just a day earlier by Federal Judge Cristiane Farias Rodrigues dos Santos, which had given Stake the green light to continue its betting operations for several more weeks.
The Attorney General's Office (AGU) initiated the request for suspension, arguing that the injunction unfairly favored Stake over other betting companies, creating an unbalanced competitive landscape. The judge agreed with this assessment, stating that the initial approval could lead to an unequal application of rules and inspire other betting operators to request similar extents of operation.
"In this case, I consider the evidence of serious harm to administrative public order to be sufficiently established," Judge Johonsom di Salvo noted in his ruling.
Stake had expressed opposition to the AGU’s appeal to the TRF-3, but ultimately, the court did not side with them. Notably, the injunction granted the previous day was only partial; Stake's request to continue operations until December 31, 2029, which is the expiration date of its original license, was denied by the 9th Federal Civil Court of São Paulo.
With this latest ruling in place, the suspension remains active until there is a final resolution or another decision issued by the presidency of the TRF-3. Stake’s opportunity to operate for an additional 16 days has now been eliminated.
Consequently, federal authorities are now authorized to enforce restrictions on Stake, as outlined in the provisional measure announced by Brazilian President Luiz Inácio Lula da Silva last month. Judge Johonsom di Salvo emphasized that permitting Stake to operate without limitations disrupted regulatory consistency and could undermine the general application of public policy.
In his ruling, the judge expressed concern for the protection of bettors, particularly regarding transparency issues within online gambling operations. Importantly, the ruling does not address the case's substantive merits and refrains from making any declarations about the constitutionality of the provisional measure, which is currently being contested by two significant gambling trade organizations in Brazil's Supreme Federal Court.
