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Stake’s Brazil revival short-lived as court overturns resumption of operations

Our write-up of a story first reported by iGaming Business

Stake’s Brazil revival short-lived as court overturns resumption of operations

Court blocks Stake again

Stake is barred from operating in Brazil again after the president of the Federal Regional Court of the 3rd Region (TRF-3), Luís Antônio Johnson di Salvo, revoked an injunction that had allowed the operator to stay live until 25 October.

The ruling came on Friday, when the judge granted an appeal by the federal prosecutor's office (AGU) and overturned the preliminary injunction issued a day earlier by federal judge Cristiane Farias Rodrigues dos Santos. AGU argued the temporary permission gave Stake an unfair competitive advantage over other bookmakers that were already blocked. The judge agreed, writing that the injunction created unequal application of the rules and could push other companies to look for the same route. 'I consider that the harm to the administrative public order is sufficiently evident,' the decision said.

Stake opposed the appeal and its objections were rejected. On Thursday the company had won only partial relief: the 9th Federal Civil Court of São Paulo turned down its request to keep operating until 31 December 2029, the term of its original licence.

Licence dispute continues

The new TRF-3 decision stands until the case is finally resolved or a further ruling is issued. Federal authorities can now apply blocking measures against Stake under the temporary decree announced by President Luiz Inácio Lula da Silva late last month.

Johnson di Salvo said keeping the permission in place would break the uniformity of regulation and could put player protection at risk, given the limited transparency of how online betting mechanics work. The ruling does not address the substance of the case or the constitutionality of the temporary decree, whose legality two large industry associations are challenging at the Supreme Federal Court.

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