DigiPlus hits bump in Brazil venture

Digital entertainment company DigiPlus Interactive Corp. has faced an unexpected hurdle in its Brazilian venture. According to a stock exchange filing, Brazil's President Luiz Inácio Lula da Silva has issued a provisional measure that prohibits the operation, offering, intermediation, and advertising of fixed-odds betting and online gaming activities.

This measure, which began immediately upon publication, must still be approved by Brazil's Congress within the constitutionally mandated period, which could last up to 120 days. DigiPlus is currently evaluating the situation and its potential effects, but for now, it seems unlikely the measure will significantly impact the company's financial health or performance.

The company stated it will continue monitoring the situation and will disclose any material developments. The company's shares dropped to near their 52-week low of P7.90, closing at P7.95, a 6.47 percent decline from the previous close of P8.50. DigiPlus' 52-week high stands at P28.30. The company initially entered the Brazilian market in October last year, intending to capitalize on a market of over 200 million people with a strong interest in sports betting.

However, in September 2025, the company temporarily paused its Brazilian operations following a soft launch. This pause was considered a strategic move to introduce a stronger digital entertainment offering. Last July, DigiPlus became a member of the Brazilian Institute of Responsible Gaming (IBJR), an organization representing over 60 percent of Brazil's regulated betting market, demonstrating its commitment to regulation and efforts against illegal gaming.

Despite Brazil being a significant focus, DigiPlus is also expanding its operations to South Africa, with plans to launch in 2027. The company is developing the team that will oversee this new venture, which will include the launch of BingoPlus, ArenaPlus, and GameZone. DigiPlus obtained licenses to operate in South Africa last April from the Western Cape Gambling and Racing Board.