One day after release, a new decision by the SP Court prevents the Stake betting platform from operating in Brazil

Online betting. — Photo: Joédson Alves/Agência Brasil

This Friday (9), the Federal Court suspended the decision that allowed the Stake betting platform to continue operating temporarily in Brazil until October 25, despite the federal government's provisional measure that foresees the extinction of betting authorizations. The Federal Regional Court of the 3rd Region (TRF-3) responded to a request from the Union and overturned the injunction granted on Thursday (8) by the 9th Federal Civil Court of São Paulo.

This Friday's decision does not definitively judge the merits of the action nor declare the provisional measure unconstitutional. In other words, it only suspends the effects of the injunction that benefited the company.

The decision was signed by the president of the TRF-3, federal judge Luis Antonio Johonsom di Salvo. The suspension is valid until the original action becomes final or until a new deliberation by the court president.

On Thursday (8), judge Cristiane Farias Rodrigues dos Santos had denied Stake's request to continue operating until December 31, 2029, but authorized the provisional maintenance of activities until October 25. The decision also prevented authorities from considering the authorization automatically terminated before that date and lifted blocks on the online casino website.

The Federal Attorney General's Office (AGU) appealed to the court. According to AGU, the injunction created an unequal situation in the sector, by allowing a single company to continue operating while all others were subject to the restrictions of the provisional measure.

When analyzing the case, the president of TRF-3 considered that maintaining Stake's authorization generated regulatory asymmetry, could compromise the uniform application of public policy and encourage other companies to seek similar judicial decisions.

The judge also cited the protection of consumers and gamblers in the face of a lack of transparency in the mechanics of massive online games.

Understand the case

The dispute began after the issuance of the Provisional Measure (MP), signed by President Lula (PT) in September, which provides for the extinction of authorizations for the operation of betting platforms achieved by the rule.

Bets started to stop working in Brazil on Tuesday (6). The ban also includes online games and virtual casinos in the country, such as "Jogo do Tigrinho".

After that, Stake went to court to try to preserve its federal license and suspend the effects of the MP in relation to the company. The main request, to continue operating until the end of 2029, was denied.

The judge, however, had partially granted an alternative request to preserve the authorization until October 25, through strict rules to protect users and prohibition of new promotional campaigns.

What happens now

With the suspension of the injunction, Stake no longer has the temporary judicial protection that maintained its operations in the country. In practice, the decision once again allows federal bodies to carry out the domain restriction and blocking measures provided for in the provisional measure.

The court ordered urgent communication to the 9th Federal Civil Court of São Paulo to inform the court of origin.

Until the last update of this report, g1 was unable to contact Stake representatives in Brazil.

See what happens to the money, bets and accounts after the betting ends. — Photo: g1

Prohibition of betting

The government of President Luiz Inácio Lula da Silva (PT) announced on September 25, in São Paulo, the total ban on fixed-odd betting in the country, known as bets. The ban also includes online games and virtual casinos in the country, such as "Jogo do Tigrinho".

The ban, made nine days before the elections, was formalized in a Provisional Measure (MP) signed by President Lula. The measure was published in an extra edition of the Official Gazette of the Union (DOU) this Friday.

🔎Provisional measures are issued by the federal government and sent to the National Congress. To become laws they definitively need to be voted on within 120 days in the Chamber of Deputies and the Federal Senate.

Lula also sent a bill to Congress that establishes penalties for those who explore, operate or publicize so-called bets (see more details below).

"I made the decision to take the necessary hard and drastic measure. It's like cancer, either remove the tumor, or the tumor will kill us. [...] It was a lot of fighting, it was a lot of discussion, it was a lot of let's do this, do everything, do nothing, do it halfway, no. Since we have to do it, let's do what has to be done. End the bets", said Lula.