Federal court reinstates a sportsbook's license
A betting operator has resumed operations in Brazil. Federal Appellate Judge Adriana Pileggi, of the Federal Regional Court of the 3rd Region, granted preliminary appellate relief to CDA Gaming Ltda. and suspended the effects of Provisional Measure 1.394/2026 for the company, thereby authorizing the reinstatement of its online domains as well as the operational, financial, and payment services necessary for it to function.
The timing of the decision is just as significant as its content. It was issued on Tuesday, the 3rd, the very day the Federal Supreme Court was holding a public hearing on the ban, and the legal grounds invoked by the judge mirror those raised hours earlier in Brasília by Justice Luiz Fux: legal certainty, reasonableness, and proportionality. Two different courts, on the same day, following the exact same line of reasoning.
The case features concrete figures that explain why it succeeded. CDA Gaming, which operates the Casa de Apostas, Betsul, and Jogo Online brands, had secured authorization from the Secretariat of Prizes and Betting of the Ministry of Finance through Ordinance SPA/MF No. 255/2025, valid until December 2029, after paying R$ 30 million for the license.
Crunching the numbers adds substantial weight to the company's argument. When the provisional measure was published on September 25, there were 39 months remaining on the authorization—just over three years and three months—which equates to roughly R$ 9.2 million for each year of the licensing term rendered void by the measure. The company paid for a set period, and the ban cut it short with less than a third of its duration completed.
The point underscored by the judge is precisely what is absent from the text of the measure. The ruling highlights the lack of any provision for refunding the fees paid or compensating the affected operators, meaning the State revoked a paid license without establishing any mechanism to offset what was paid for the unused term.
This served as the cornerstone of her legal reasoning. She argued that the prevalence of the public interest does not grant the Public Administration the power to abruptly alter a previously established legal status, particularly when payments were made on the basis of a fixed-term license.
The judge also evaluated the time factor as an injury in its own right. She determined that shutting down operations on such short notice could inflict excessive harm on the company, echoing the argument Fluminense had presented the day before to the Supreme Court, noting that Brazil banned a regulated activity while offering a mere ten-day grace period.
There is another factor highlighted in the decision that illustrates the pressure on anyone attempting to continue operating. The provisional measure imposes a fine of R$ 200,000 per day on companies that fail to comply with its provisions, meaning that 150 days of penalties equate precisely to the R$ 30 million CDA Gaming paid for its license.
It is important to be clear about the scope of the ruling, as it does not strike down the ban entirely. The relief exclusively benefits CDA Gaming, remains in effect until the mandado de segurança filed in the court of first instance is definitively reviewed or pending further judicial deliberation, and the company remains subject to regulatory requirements and state oversight.
What it does open, however, is a path forward. A federal court has accepted that the principle of legitimate expectations is sufficient grounds to restore a license via an injunction, establishing a precedent available to any operator that paid for authorizations under the previous regulatory regime. If individual claims multiply, the practical effect of the ban could be steadily eroded before the Supreme Court ever rules on the merits.
Provisional Measure 1.394/2026 was published on September 25 and banned the offering, operation, and advertising of sports betting and online gaming across Brazilian territory, two years after Law 14.790 of 2023 established the federal licensing framework managed by the Secretariat of Prizes and Betting. A tutela recursal is an interim measure granted by an appellate court while an appeal is processed, and a mandado de segurança is a legal action through which an individual or company seeks judicial protection against an administrative act deemed unlawful.
Tags: Brazil, TRF-3, CDA Gaming, MP 1.394/2026