The president of the Federal Regional Court of the 3rd Region (TRF-3) has suspended the decision that allowed Stake to continue operating until 25 October.
The action taken on Friday by Judge Luis Antonio Johonsom di Salvo responded to a request from the Attorney General’s Office (AGU) and overturned a preliminary injunction granted last Thursday by Federal Judge Cristiane Farias Rodrigues dos Santos, which allowed Stake to operate until late October.
As a result, the betting operation is once again blocked in the country.
The AGU appeal argued the injunction favoured only Stake over other betting companies, giving it an unfair competitive advantage.
The judge accepted the request, also considering that the authorisation created inequality in the application of the rules and could encourage other companies to seek similar decisions.
“In this case, I consider the evidence of serious harm to administrative public order to be sufficiently established,” the ruling read.
Stake expressed its opinion against granting the AGU’s request to the TRF-3, but its request was not granted.
The injunction it received on Thursday was only partial, with its request to be allowed to continue operating until 31 December 2029 – the expiration date of its initial licence – denied by the 9th Federal Civil Court of São Paulo.
The suspension is valid until the definitive end of the action or until a new decision by the court’s presidency.
With this, the new measure from the TRF-3 eliminates the possibility of Stake continuing to operate for another 16 days.
Stake did not respond to a request for comment from iGB.
Stake without judicial protection
With the new ruling, federal agencies will be able to implement the measures to restrict and block Stake, as stipulated in the provisional measure announced by Brazil’s President Luiz Inácio Lula da Silva late last month.
Judge Johonsom di Salvo considered that maintaining the authorisation for Stake to continue operating created regulatory asymmetry.
According to the magistrate, this could compromise the uniform application of public policy.
In the ruling, the judge cited the protection of bettors in the face of a lack of transparency in the mechanics of online gambling.
The decision does not judge the merits of the case, nor does it declare the constitutionality or unconstitutionality of the provisional measure, which has been questioned by two of Brazil’s major gambling trade bodies before the Supreme Federal Court.