Harry Grant
DigiPlus Confirms Compliance, Cites No Material Impact
DigiPlus Interactive Corp. responded to the Brazilian government’s decision to ban regulated iGaming and sports betting markets, stating that the development will not have a material impact on the company. The operator, described as one of the leading online gaming companies in the Philippines, confirmed it has taken all necessary steps to comply with the new Provisional Measure.
“The situation remains fluid and is not final, as the relevant legislative and legal processes continue to develop,” DigiPlus said in a statement. “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.”
Provisional Measure Suspends Operations
President Luiz Inácio Lula da Silva issued the Provisional Measure last week, effectively shutting down Brazil’s regulated iGaming and sports betting markets overnight. The move occurred without prior industry input, despite the Brazilian government having launched the industry in December 2023. The measure is part of a broader political landscape where the incumbent seeks reelection as the race for the presidency intensifies.
Under the new rules, all deposits in Brazil were suspended with immediate effect on Friday, September 25. Platforms operated by licensed providers will remain accessible to users until 11:59 pm on October 5. After that time, access to the regulated market is expected to cease, pending further legal developments.
Legal Challenges and Industry Reaction
The ban has affected several major operators, including Entain, Paddy Power, FanDuel, PokerStars, and Sportsbet. Flutter, another key player in the Brazilian market, expressed “extreme disappointment” regarding the decision. The company stated it is exploring all available options, including an appeal against the measure.
Flutter argued that the Provisional Measure would not be valid for 120 days from its initial announcement without Congressional approval. According to the company, the lack of legislative backing creates a legal vulnerability in the enforcement of the ban. This 120-day window represents the validity period for the measure if it does not receive approval from Congress.
Financial and Market Consequences
Licensees in Brazil had paid licensing fees upfront to operate legally, but they will not receive compensation as a result of the market’s sudden closure. The abrupt nature of the shutdown has also led to an immediate increase in illegal gambling websites, which are reported to be mushrooming in the wake of the provisional measure.
DigiPlus noted that it invested in Brazil at the onset of market legalization in 2023. The company’s statement emphasizes its commitment to an orderly wind-down of operations in the region, focusing on the return of customer funds. The legal status of the ban remains uncertain, with legislative and legal processes still ongoing.
Why It Matters
The suspension of deposits and upcoming shutdown of platforms directly affects the operational status of licensed operators in Brazil, including DigiPlus, Entain, and Flutter. The 120-day validity period of the Provisional Measure creates a specific window for legal challenges and potential legislative reversal. For readers tracking the global iGaming landscape, this development highlights the regulatory risks associated with emerging markets where political shifts can rapidly alter the business environment without prior industry consultation.
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