Digital entertainment company DigiPlus Interactive Corp. revealed that it will begin its Brazilian gaming operations with sports betting, with activities expected to launch by the end of the year.
According to media outlet BusinessWorld, in a recent media briefing DigiPlus Chairman Eusebio H. Tanco mentioned the enthusiasm of the Brazilian people for football. He also noted that the company plans to “test the market first.”
Meanwhile, Tanco also revealed that the company is exploring the possibility of partnering with a local entity in Brazil to navigate the market more effectively. While the executive expressed that funding is not a major concern for DigiPlus, it is seeking a strategic partner to support its expansion.
The company’s subsidiary, DigiPlus Brazil Interactive Ltda., recently obtained a gaming license from the Brazilian Ministry of Finance’s Secretariat of Awards and Bets. This license authorizes DigiPlus to operate land-based and online sports betting, electronic games, live game studios, and other fixed-odds betting activities.
According to Celeste M. Jovenir, Vice-President for Investor Relations, DigiPlus has engaged a local Brazilian investment bank to help identify potential partners. While no partner has been selected yet, the search is ongoing. Since last year, the company has also assembled a team of 10 people in Brazil to help secure the necessary licenses for operation.
DigiPlus has allocated PHP660 million ($11.4 million) to cover initial costs, including license fees, capitalization, financial reserves, and other operational expenses for the first three months of its operations in Brazil.
The company will use its ArenaPlus platform for online sports betting in the country. DigiPlus sees Brazil’s large population and rapidly growing gaming market as key factors positioning the country as one of the most promising in Latin America for gaming industry growth.
