Kevin James Mallon, an executive at British sports hospitality firm THG, was told of the decision during an afternoon hearing in Rio yesterday, meaning he is still facing a potential two-year prison sentence over the affair.
Mr Mallon was arrested alongside his translator in the Olympics host city on August 5 after being found in the Next Flats Hotel complex in possession of an estimated 1,000 tickets for the high-profile games.
It is alleged the Dublin finance director of the sports hospitality firm is involved in the illegal re-sale of official tickets for significantly more than their face value.
However, Mr Mallon, his company and his lawyer Franklin Gomes have insisted he is innocent of all charges.
At a hearing in Rio yesterday, Mr Gomes sought bail for his client while the investigation continues, a move which had been initially intended to take place last Friday.
However, judge Ribeiro Dantas turned down the request, meaning the Irishman remains in custody today.
It is believed Mr Mallon’s legal team will now appeal the case to a separate court.
However, attempts to contact Mr Gomes to confirm the next course of action last night proved unsuccessful.
Mr Gomes has previously told reporters his client had done nothing wrong and will be released in the near future.
“He knows he did nothing wrong. He has no idea why this is happening to him. He is calm and in good health and safe,” he said.