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Scotts Valley has maintained that federal officials reversed course under intense political pressure from the Yocha Dehe Wintun Nation, a neighboring tribe that opposes the Vallejo casino development.

During Friday’s hearing, McFadden appeared skeptical that Scotts Valley had met the rigorous legal standard required to demonstrate irreparable harm. He has not yet issued a ruling on the preliminary injunction request.

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In 2025, Brazil collected almost BRL10 billion ($1.97 billion) in tax revenue from the licensed sector. In the first seven months of this year alone, BRL8.7 billion generated by the activity was delivered to public coffers. The Federal Revenue Service itself estimates that the sector should reach BRL16 billion in revenue during 2026.

Besides revenue collection, another concern is legal and economic. Companies have paid over BRL2.5 billion for licences since the sector’s regulation. Certainly, the end of the activity would lead to litigation to recover the amounts paid and compensation for investments made. Furthermore, the revenue from betting is already included in the Annual Budget Law and the Budget Guidelines Law, which define the priorities for federal government spending.

What worries the sector is not just the threat of drastic measures against legalised betting. So far, the government has consistently fallen short in its attempts to curb the illegal market, which still represents almost half of the segment.

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“The World Cup, as you know, is largely a customer acquisition opportunity, and it was also combined with a good turnover period for us,” he outlined. “Yes, that has continued.

“Now, having said that, we’ve also been in a low sportsbook activity environment during July when most football leagues have been closed. But we have that underlying improvement in momentum, and we continue that now throughout the rest of the year.”

Beyond SunBet’s growth, another highlight of Sun International’s H1 was a return to growth for its land-based casino segment, for the first time in three years.