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Brazil federal court overturns CDA Gaming injunction due to ‘regulatory instability’

| By Gildo Mazza
Brazil’s latest legal battle over betting regulation has taken another turn, with CDA Gaming losing its temporary right to operate.
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On Friday, the president of the Federal Regional Court of the 3rd Region (TRF3), Luís Antônio Johonsom di Salvo, suspended the injunction that had allowed CDA Gaming to operate with its three brands in Brazil.

The AGU appealed against the decision of Judge Adriana Pileggi, who suspended the effects of MP 1.394/2026, which prohibited betting in the country.

In ruling in favour of CDA Gaming’s request, the judge acknowledged that the termination of licences within such a short timeframe caused harm to those authorised companies.

She referred to the disregard for the “constitutional principles of legal certainty, reasonableness and proportionality”.

Risk to public order

In his ruling, the president of the TRF-3 referred to a previous case, involving Stake, which was granted the right to temporarily resume operations by Judge Pileggi, before Johonsom di Salvio overturned the decision.

“As already stated in the previous decision, the issue of the ‘bets’ in light of the provisional measure is sub judice before the Supreme Federal Court, and it would be inconvenient for public order for lower courts to anticipate their understandings,” stated Johonsom di Salvo.

For him, keeping the betting operations running would be a “concrete risk of serious harm to public order, insofar as maintaining the granted protection introduces a scenario of normative instability incompatible with the management of public policy of national scope”.

Johonsom di Salvo reiterated that he had legitimacy to suspend the judge’s injunction based on the understanding that the merits of the case were not submitted to the full court, so that “the competence of this presidency prevails, pursuant to article 4 of Law No. 3,437/92”.

CDA Gaming had launched the Casa de Aposta and Betsul brands online before its right to continue operations was overturned. Before Jogo da Sorte went live, the president of the TRF-3 overturned the injunction.

Attorney General’s Office anticipates further actions

The Attorney General’s Office expects further legal action to try to contain the effects of Provisional Measure 1,394. Attorney General Paulo Gonet has asked the Supreme Federal Court to suspend all proceedings in Brazil that discuss the constitutionality of the provisional measure.

The request aims to prevent the proliferation of lawsuits regarding the provisional measure. What the Attorney General’s Office wants is for all actions to be suspended until the final ruling of the Supreme Federal Court, which held a public hearing on betting last week.

While the effect of censoring decisions may not materialise, new lawsuits will arise and it is unlikely they can be shelved.

With this request, the attorney general wants to prevent legal action against Provisional Measure 1,394. Supreme Federal Court Minister Luis Fux has already said he needs more time to analyse the matter, and Gonet wants to block decisions in Regional Federal Courts.

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