Online gaming firm DigiPlus Interactive Corp. on Monday said it is closely monitoring recent regulatory developments in Brazil and is taking all necessary steps to comply with Brasilia’s directive.
Over the weekend, Brazil President Luiz Inácio Lula da Silva, issued a Medida Provisória, or a provisional measure, that bans the operation, offering, intermediation and advertising of fixed-odds betting and online gaming activities in Brazil.
The provisional measure took effect immediately upon publication and is subject to approval by the Brazilian Congress within the constitutionally prescribed period, which may extend to 120 days.
DigiPlus, however, said the situation remains fluid and is not final, as the relevant legislative and legal processes continue to develop.
‘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,’ the company said in a statement.
‘Based on our assessment, these developments are not expected to have a material impact on DigiPlus’ overall financial or operating position,’ it said.
Abacus Securities said Brazil’s move, done ahead of the presidential election, was to address rising household debt and online gaming addiction.
There had been no discussions of regulating the market for online gaming and instead, an outright ban was imposed.
It said the biggest hit here would be on DigiPlus, as it has been positioning itself to compete in the South American market.
The company already launched its online gaming platform last year but this has not gained traction against the biggest names in the online gaming space around the world, Abacus said.
‘However, the company has shown optimism in continuing its venture indicating that more investments in marketing and in its platform would occur. The recent move would be a negative for PLUS but at the same time, could stop the bleeding for its venture in Brazil.’
DigiPlus has already allocated some P660 million, and has likely to have spent more for its Brazilian venture, the broker said.
‘This could further re-test new lows for PLUS and we reiterate our recommendation to avoid the stock,’ Abacus said.
Meanwhile, retail stock broker COL Financial said the issue would have limited impact on its fair value (FV) estimate on the stock.
‘We see limited near-term impact on our earnings and FV estimate, as our current forecasts do not account for PLUS’ potential expansion into Brazil,’ it said.
The broker currently has a buy rating on the stock, with fair value estimate of P15.07 per share.
DigiPlus said it has started to generate revenues from its gaming operations in Brazil.
Erick Su, DigiPlus chief global growth officer, said the tweaks they have made to their online gaming platform has resulted in better revenues compared on how it fared during the soft launch in the third quarter last year.
The Digiplus platform ran for about three weeks starting in September last year before the company took a strategic pause on October 10, 2025 to retool the platform for better cultural alignment with Brazilian players.
‘I think it’s going okay. We improved the revenue we have and you probably can see some of the reports in the third quarter when we have a financial release,’ Su said at the sidelines of the Inside Asian Gaming Expo.
‘Obviously, it’s still relatively low compared to what we have in the Philippines…We are still progressing and see if we can expand the business, increase the revenue… So, our international market is still in exploration stage,’ he said.
Su also noted that they are also facing challenges in Brazil. Aside from its being a very competitive market, he said recently there’s a lot of turbulence about the policy and the President talked about banning online gambling.