DIGITAL GAMING company DigiPlus Interactive Corp. is nearing its Brazil expansion after a subsidiary passed the gaming license qualification stage.

DigiPlus Brazil Interactive Ltda., a subsidiary of DigiPlus Interactive, has successfully passed the initial requirements for obtaining a federal gaming license from the Brazilian Ministry of Finance’s Secretariat of Awards and Bets (SPA), the listed company said in a regulatory filing on Thursday.

“This milestone advances DigiPlus into the final stages of the licensing process, bringing it closer to participation in Brazil’s newly regulated iGaming sector, one of Latin America’s most dynamic and rapidly growing gaming markets,” the company said.

DigiPlus has 30 days to complete post-qualification regulatory requirements, including platform certification and license fee payments.

Once completed, the SPA will issue the final list of operators authorized to operate from Jan. 1, 2025 onwards.

“As we navigate the final steps of the licensing process, we remain confident in our ability to align with Brazil’s regulatory requirements and introduce world-class gaming experiences to this dynamic market. This underscores our dedication to expanding into a new region while maintaining our focus on the Philippines as our core market,” DigiPlus Chairman Eusebio H. Tanco said.

DigiPlus filed for the gaming license in August, citing Brazil’s population of over 200 million as well as its potential as one of the fastest-growing gaming markets in Latin America.

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 President Andy Tsui said in a recent virtual briefing that the gaming license in Brazil, valid for five years, will cost around $6 million.

“We understand that Brazil has a big population, which is about two times that of the Philippines, and also has a deep-rooted passion for sports. We understand that the market size is about $2 billion for 2024 and is expected to grow about 15% to 20% over the next five years, so the market size may reach around $4 billion by 2029,” he said.

“We can leverage our existing platform and make necessary changes to meet the local compliance requirements. We’ll continue to explore different options to enter the market. We are also exploring options to work with a local partner so that we can kick-start a little faster,” he added.

For the first nine months, DigiPlus posted a 314% growth in net income to P8.75 billion from P2.1 billion in 2023, led by its retail games, new product offerings, and cost efficiencies.

Revenue increased by 223% to P51.56 billion from P15.98 billion in 2023.

On Thursday, DigiPlus shares rose by 1.3% or 26 centavos to P20.20 apiece. — Revin Mikhael D. Ochave