Ever since Brazil introduced its controversial ban on iGaming and sent the entire gaming industry on edge, companies have been trying to reach an agreement to return online. One local operator has finally managed to secure temporary relief that allows it to continue offering online gaming products, for now.
Casa de Apostas Returns Online
According to reports, CDA Gaming’s Casa de Apostas brand is back online after the company secured interim appellate relief at the Regional Federal Court of the 3rd Region (TRF3). This comes after the country banned iGaming and online sports betting several weeks ago.
TRF3, which is responsible for São Paulo and Mato Grosso do Sul, ruled that CDA Gaming, which operates Casa de Apostas, Betsul, and Jogo Online, can resume the gaming services offered by the Casa de Apostas and Betsul brands. As a result, the former brand is once again offering online gaming, although sports betting services and the Betsul brand have yet to resume operation.
The relief was granted on November 3, with the judge ruling in favor of the company after arguing that CDA Gaming had invested significant sums in securing a license and setting up its sites. The judge rejected claims that keeping the site closed is in the public interest, arguing that the same argument could have been made when the license was granted two years ago.
For reference, licensees in Brazil had to pay millions to procure a license and even more to set up their operations. The judge argued that Brazil’s sudden iGaming U-turn harms companies and violates basic constitutional principles, such as legal certainty and proportionality.
The judge also cited the apparent lack of urgency for the ban, the refusal to refund operators’ license fees, and the disproportionate daily fines MPs introduced as reasons for the relief.
The Decision May Set a Precedent
The decision could be big news for operators in Brazil as it sets a precedent for the return of other companies. Previously, Stake managed to secure similar relief, although the decision was quickly shot down by the government, much to Stake’s dismay.
The current relief has yet to be confirmed by the full 3rd Panel and could still face difficulties. However, the decision challenges the constitutionality of the very provisional measure that banned iGaming and is standing on firmer legal ground than the Stake ruling that preceded it.
In the meantime, operators remain open to dialogue with the Brazilian government, in hopes of reaching an accommodation before the provisional measure sticks and bans iGaming for good. Many companies expressed disappointment with Brazil’s direction and said that the country is likely to lose investor trust. Despite that, many companies, including provider Kambi, said that they are open to resuming operations in Brazil, should anything change.