DigiPlus says Brazil betting ban unlikely to materially affect group

Philippines-listed online gaming operator DigiPlus Interactive Corp says Brazil’s newly-announced ban on online gaming and sports betting is unlikely to have a material impact on the group, less than three months after it relaunched operations in the Latin American country. In a statement sent to GGRAsia on Monday, DigiPlus said it was taking steps to comply with the Brazilian government’s directive. “DigiPlus is closely monitoring recent regulatory developments in Brazil and is taking all necessary steps to comply with the government’s directive,” the company said. “The situation remains fluid and is not final, as the relevant legislative and legal processes continue to develop,” it added. The firm stated: “Our immediate priority is to ensure an orderly response, including the timely processing of customer withdrawals and the return of customer funds within the prescribed period.” Brazilian President Luiz Inácio Lula da Silva announced on Friday a ban on online gambling in the country. The government issued a provisional measure that day prohibiting the operation, offering, intermediation and advertising of fixed-odds betting. The measure covers both sports betting and online games. Existing licensed operators were barred from accepting new deposits when the measure took effect. Customers have until October 5 to withdraw their balances voluntarily, while betting websites and apps are due to go offline from October 6, according to the government’s order. DigiPlus had said in a separate stock exchange filing that Brazil’s provisional order had taken effect immediately upon publication on Friday, but remained subject to approval by the country’s Congress within a period “that could extend to 120 days”. Based on its assessment, the company said the developments were “not expected to have a material impact” on its overall financial or operating position. It did not disclose the size of its Brazilian business or the amount of customer funds held there. The provisional measure provides for existing betting authorisations to expire 30 days after publication. Brazil’s government has also set out a process for banks to return balances that customers have not withdrawn by the October 5 deadline. DigiPlus obtained authorisation for operating sports betting and online games in Brazil through its wholly owned subsidiary, DigiPlus Brazil Interactive Ltda, effective from January 2025. The firm launched its GamePlus platform in September last year, but paused the initial rollout the following month while developing a product tailored to the local market. The company relaunched in Brazil with its BingoPlus platform in July this year. DigiPlus said on Monday it would continue to monitor the legislative and legal processes in Brazil and provide further updates as appropriate.