Stake to appeal against the lifting of the injunction in Brazil

Stake's lawyers will take new legal steps in Brazil after a court lifted the injunction that gave the operator temporary protection.

President Luiz Inácio Lula da Silva had banned licensed betting activities at the end of September. A preliminary injunction had been issued allowing Stake to continue operating until 25 October, but the following day the president of the 3rd Regional Federal Court (TRF3), Luis Antonio Johonsom di Salvo, suspended the ruling. Stake was therefore once again covered by the ban.

Udo Seckelmann, a partner at the law firm Bichara e Motta Advogados, which is handling the case, told iGB that they will appeal the decision. Seckelmann said, "Of course this is not over. This is only a step back." He said they are weighing two possible routes and have not yet decided which one to file. He did not explain the grounds for the appeal. He added that if a favorable decision comes in the coming days, other operators could achieve a similar result, so they carry responsibility on behalf of the entire sector.

The sector's reaction to the ban has largely centered on the investments made for licenses. Entering the Brazilian market required a license fee of 30 million BRL (6 million dollars) and a financial reserve of at least 5 million BRL. International companies such as Stake were also required to set up a base in the country. One of the main pillars of Stake's defense is that the decision undermines the legal predictability operators relied on when entering the market.