The Federal Appellate Court in Brazil has temporarily reinstated the betting licence of CDA Gaming Ltda., the operator behind Casa de Apostas, Betsul, and Jogo Online. This decision, issued on 3 November, follows a wave of licence revocations affecting multiple operators in the country.
Appeal Overturns Initial Licence Revocation
CDA Gaming's licence was originally revoked as part of a broader regulatory crackdown. The company's first attempt to challenge the decision was unsuccessful, with the lower court determining that public interest outweighed the operator’s arguments regarding legal certainty. However, the appellate court sided with CDA Gaming, restoring its licence through an emergency ruling.
Key Legal Arguments in the Ruling
The court highlighted several reasons for its decision. It noted that the government had cancelled a licence for which a 30 million real fee had been paid, without offering a refund or compensation. The ruling also emphasised that abruptly ending a valid licence contradicted principles of legal certainty, reasonableness, and proportionality under Brazil’s constitution. Additionally, the judge questioned the legality of imposing a daily fine of 200,000 reals for non-compliance with interim measures, and stated that referencing public interest does not justify sudden changes to existing agreements.
Implications for the Brazilian Betting Sector
For operators, this case sets a significant precedent. The court’s decision to restore CDA Gaming’s licence—at least temporarily—demonstrates that regulatory actions can be successfully challenged, especially when there are concerns about due process or compensation. However, the ruling applies only to CDA Gaming and does not automatically reinstate licences for other operators affected by the recent revocations.
Why This Matters for Stakeholders
This development signals to operators, affiliates, and suppliers that the Brazilian legal system may offer recourse against abrupt regulatory changes. For affiliates and partners of CDA Gaming’s brands, the restoration of the licence enables continued business operations. Regulators may also need to consider the legal risks of sudden enforcement actions without clear transitional provisions or compensation mechanisms.
Key takeaways
- CDA Gaming's betting licence in Brazil has been temporarily reinstated after an appeal.
- The court criticised the lack of compensation and abrupt licence termination.
- This ruling applies only to CDA Gaming and does not affect other operators.
- The case highlights the importance of legal certainty for operators in regulated markets.