Stake plans legal challenge to Brazil’s betting ban

Stake announces that they will challenge the Brazil’s court decision of an injuction allowing the operator to temporarily resume betting operations. The case could have broader implications for licensed gambling operators seeking to reverse Brazil’s betting ban. The operator recured a preliminary injunction allowing it to continue operating until October 25 after the ban. Anyway Judge Luis Antonio Johonsom di Salvo, president of the Federal Regional Court of the 3rd Region (TRF-3), suspended the injunction the following day at the request of the Attorney General’s Office. Udo Seckelmann, a partner at law firm Bichara e Motta Advogados, which represents Stake, confirmed that the company is preparing to challenge the ruling. He said the legal team is considering two possible strategies and noted that a favourable decision could benefit other operators. According to take, the prohibition casts doubt on the legal certainty upon which operators relied upon their entry into the regulated market in Brazil. The companies that were fully licensed had to pay BRL30 million (about $6 million) as a license fee, have at least BRL5 million as a financial reserve, and have a local office if they were from abroad. As per Seckelmann, however, the operators did these investments in the environment where betting was considered to be legal, and thus the ban created an obstacle for them. He added that there was no data that could justify the government’s decision since the claims of the public regarding gambling debts, gambling addiction, and illegal gambling proved that licensed operators were not to blame for these issues. Court ruling raises questions over market access The Attorney General’s Office Office appealed the decision of the injunction placed on Stake’s operation of their business. The motive being that if Stake is allowed, it would gain an advantage over its competitors. Seckelmann said that ruling was tainted by politics. These allegations are made in line with Stake’s case. In the meantime, the future of betting operations in Brazil appears to be uncertain due to the ban, raising problems of economy and workforce for the operations. The result of the appeals remains to be seen as it will determine the possibility for the licensed operators to operate in Brazil.