DigiPlus Interactive Corp., one of the leading online gaming operators in the Philippines, has responded to the recent shuttering of Brazil’s regulated iGaming and sports betting markets. The company, which has invested in the country at the onset of the market legalization, has said that it was following the evolving situation in Brazil closely.
DigiPlus Cautious about Brazil, But Doesn’t Think “Temporary” Disruption Will Be Calamitous
Last week, President Luiz Inácio Lula da Silva issued a Provisional Measure, which effectively banned the market overnight. It was da Lula’s government that launched the industry in December 2023, only to shutter it without any industry input – almost on a whim – as the race for the Presidency intensifies and the incumbent is seeking reelection.
Platforms in Brazil will remain accessible until 11:59 pm on October 5, but all deposits have been suspended with immediate effect on Friday, September 25. DigiPlus is monitoring the regulatory development, the company said in a statement, adding that it has taken all necessary steps to comply with the provisional measure.
“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 added.
Companies Raise Hackles Over Abrupt and Unexpected Decision
DigiPlus also noted that the current developments, despite their reach, would not have a material impact on DigiPlus. However, there have been many companies affected locally, and some of the world’s largest, among which are Entain, Paddy Power, FanDuel, PokerStars, Sportsbet, and others.
Flutter expressed its “extreme disappointment” with the development and argued that it was exploring all available options, including an appeal. The company similarly argued that without Congressional approval, the measure would not be valid in 120 days of its initial announcement.
However, the damage to the industry may already be done, as licensees will not receive any compensation even though they have paid for licensing fees upfront. While this may be a temporary disruption, da Silva’s reelection may still present trouble for the sector.
In the interim, there has been a lot happening. New illegal gambling websites are mushrooming in the immediate wake of the provisional measure, putting further pressure on the government to address the threat from the illegal gambling market.