DigiPlus Interactive Corp., a Philippine-based gaming company, is actively seeking a local strategic partner to help launch its online gaming operations in Brazil. The company was granted a license to operate sports betting and online gaming within the country, marking a significant milestone in its global expansion.
Pursuit of a strategic partner:
Eusebio Tanco, the chairman of DigiPlus, shared in a recent interview that the company is well-funded for its Brazilian venture but is keen on finding a local partner with expertise in the gaming industry. Tanco emphasized that while DigiPlus has the necessary resources to fund the expansion, a partner knowledgeable about the Brazilian market would be crucial for success.
“We haven’t identified a partner yet. The team is still on the search, looking at different companies there. We have an investment banker helping us. It’s a local Brazilian bank,” said Celeste Jovenir, DigiPlus Vice President for Investor Relations, as Manila Standard reports. The company has already assembled a dedicated management team for the Brazilian operation, but the key focus remains on securing a strategic partner to navigate this new market.
The Philippines-listed company has earmarked an initial budget of P660 million (approximately $11.2 million) for its Brazil initiative. This amount will cover the costs related to securing the gaming license and operational expenses for the first three months of the business. According to Daily Tribune, DigiPlus is poised to leverage its existing online betting platform, ArenaPlus, as a foundation for its entrance into the Brazilian market.
Brazil, with its population exceeding 200 million, presents a promising market for sports betting and online gaming. The country recently opened up its gaming sector, allowing only a select few applicants to receive licenses. DigiPlus is one of the few companies granted this approval, positioning itself as one of the early players in Brazil’s gaming landscape.
The Brazilian gaming market, valued at $2 billion in 2023, is expected to grow significantly over the next few years. Analysts project the market will reach $4 billion by 2029, with an annual growth rate ranging between 15% and 20%. DigiPlus is optimistic about tapping into this rapidly expanding market, especially considering the immense popularity of football and sports betting in the country.
DigiPlus’s sports betting operations in Brazil will include both land-based and online sports betting, electronic games, live game studios, and other fixed-odds betting activities. With such a broad spectrum of offerings, DigiPlus plans to cater to a wide range of gaming preferences and needs within the Brazilian market.
The role of local expertise:
While DigiPlus is financially equipped to fund the expansion on its own, Tanco emphasized the importance of partnering with a local entity that understands the intricacies of operating within Brazil. “We have sufficient resources, but maybe as a strategic partner,” Tanco mentioned. This underscores the company’s desire to align with a partner that brings valuable local knowledge and experience, which could prove essential for long-term success.
In addition to its sports betting ventures, DigiPlus plans to explore other avenues within the gaming sector, with the aim of making a strong impact in Brazil’s growing market.
DigiPlus’s push into Brazil is part of the company’s larger vision of broadening its footprint in international gaming markets. The company’s strategic focus on Brazil demonstrates its confidence in the country’s market potential, as well as its commitment to providing high-quality gaming experiences.