LISTED DigiPlus Interactive Corp. is targeting an expansion into Brazil’s digital gaming sector, citing the recent legalization of betting activities in the country.
The company’s subsidiary, DigiPlus Brazil Interactive Ltda., expects the result of its license application filed in Brazil to be issued on or before the end of November, DigiPlus said in a regulatory filing on Monday.
On Aug. 18, DigiPlus Brazil applied for a Licença Para Loterias De Apostas De Quota Fixa, a federal license that allows the operation of land-based and online sports betting, electronic games, live game studios, and other fixed-odds betting activities in Brazil.
“DigiPlus is exploring opportunities in Brazil’s iGaming market following the recent legalization of gaming and betting activities in the country,” the company said.
“Currently in its preliminary stages, DigiPlus is looking to diversify its portfolio into new markets with an enabling regulatory environment for iGaming,” it added.
Last year, Brazil passed legislation that formed a regulatory framework for its online betting market, which included a condition that operators should have a Brazilian partner with at least a 20% stake in the business.
“DigiPlus recognizes Brazil’s strong potential as one of the fastest-growing gaming markets in Latin America. The country has a population of over 200 million, with internet penetration at 87%,” the company said.
Despite the planned expansion, DigiPlus said it envisions the Philippines to remain its “core market.”
For the first half, Digi-Plus saw a 377% increase in its net income to P5.2 billion from P1.1 billion last year as revenues surged by 263% to P32.5 billion from P8.9 billion a year ago.
The listed gaming group attributed the growth to higher user traffic and fresh contributions from new game offerings.
Some of the company’s platforms include BingoPlus, ArenaPlus, Perya Game, and BingoPlus Poker.
On Monday, DigiPlus shares dropped by 4.69% or 95 centavos to P19.30 per share. — Revin Mikhael D. Ochave