Stake announces appeal against Brazil betting ban
Company challenges suspension of injunction that had allowed operations until 25 October
Key Takeaways
- Stake will appeal the court order that suspended an injunction allowing it to operate in Brazil until 25 October.
- Judge Luis Antonio Johonsom di Salvo (TRF-3) stayed the injunction at the request of the Prosecutor General's Office.
- Licensed operators paid BRL30 million in licence fees, had to keep BRL5 million in reserve and, if foreign, maintain a local office.
- Bichara e Motta Advogados, representing Stake, is considering two legal strategies according to partner Udo Seckelmann.
Stake has announced it will file an appeal against the court order that suspended an injunction allowing it to temporarily resume betting operations in Brazil. The company had obtained an injunction permitting it to operate until 25 de octubre, but Judge Luis Antonio Johonsom di Salvo, president of the Tribunal Regional Federal da 3.ª Região (TRF-3), stayed that order the next day at the request of the Prosecutor General's Office.
Reasons for the appeal
Law firm Bichara e Motta Advogados represents Stake; partner Udo Seckelmann confirmed the company is preparing an appeal to challenge the suspension. Seckelmann said the legal team is studying two possible strategies and argued that a favorable decision could benefit other licensed operators.
"Companies that were fully licensed made investments expecting betting to be legal," said Udo Seckelmann.
According to Stake's statement, the ban raises questions about the legal certainty on which operators based their entry into Brazil's regulated market. Companies that obtained licences paid BRL30 millones (approximately $6 millones) as a licence fee, were required to keep at least BRL5 millones as a financial reserve and to maintain a local office if they were foreign.
State reaction and litigation consequences
The Prosecutor General's Office appealed the original injunction, invoking competitive advantage if Stake remained operational. The appeal and Stake's challenge are still pending, and their outcome will determine whether licensed operators can resume operations in Brazil.
The case also raises questions about employment and economic activity linked to betting operations in the country. Stake argues there is no data justifying the ban and notes that public claims about gambling debt, addiction and illegal gambling do not demonstrate liability by licensed operators. For regulatory follow-up see the [regulation](/regulation) section, indicated as regulación.
Frequently Asked Questions
What happened to the injunction that allowed Stake to operate in Brazil?
The injunction that permitted Stake to operate until 25 October was suspended by Judge Luis Antonio Johonsom di Salvo, president of the Tribunal Regional Federal da 3.ª Região (TRF-3), at the request of the Prosecutor General's Office.
What legal argument does Stake present in favour of its appeal?
Stake argues that licensed companies invested under the assumption that betting was legal; Bichara e Motta Advogados and partner Udo Seckelmann have said a favourable decision could also benefit other licensed operators.
What economic requirements did licencees have to meet in Brazil?
Companies that obtained licences were required to pay BRL30 million (about $6 million) as a licence fee, maintain at least BRL5 million as a financial reserve and, if foreign, have a local office.
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Miguel Sandoval
Regulatory Affairs Correspondent
Miguel Sandoval tracks gambling legislation, licensing, and regulator enforcement — from Spain's DGOJ and the Latin American authorities to the UKGC, the MGA, and the state-by-state map in North America. The reports answer three questions precisely — what changed, where, and who it affects — with jurisdictions, dates, and penalties cited exactly as published. Operators and compliance officers read Miguel Sandoval to know which rulebook moved before their next meeting.
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