DIGIPLUS Interactive Corp. is exploring the possibility of teaming up with a local partner in Brazil to support the company’s expansion.
“We’re always exploring possibilities. It’s better to have a local partner,” DigiPlus Chairman Eusebio H. Tanco said at a recent media briefing.
“It is not so much about the funding. We have sufficient resources, maybe more of a strategic partner,” he added.
Mr. Tanco also confirmed that the company’s operations in Brazil will begin with sports betting, which could go live “probably towards the end of the year.”
“We’ll start with sports first. They love football there. We’ll test the market first,” he said.
DigiPlus Vice-President for Investor Relations Celeste M. Jovenir said that the company has engaged a local Brazilian investment bank to search for potential partners.
“We haven’t identified anyone yet. The team is still searching and looking at different companies there. We have an investment banker in Brazil helping us. It’s a local Brazilian investment bank,” she said.
“The senior management is interviewing people from Brazil to form the team. Actually, we already have a team of ten people there since last year to apply for the license,” she added.
Last month, DigiPlus announced that its subsidiary DigiPlus Brazil Interactive Ltda. secured a gaming license from the Brazilian Ministry of Finance’s Secretariat of Awards and Bets.
With the gaming license, DigiPlus is now authorized to conduct land-based and online sports betting, electronic games, live game studios, and other fixed-odds betting activities in Brazil.
The company has initially earmarked P660 million to cover the license fees, minimum capitalization, financial reserves, and other operational expenses for the first three months of its operations in Brazil. It will use the ArenaPlus online sports betting platform for the Brazilian expansion.
DigiPlus previously mentioned that the Brazil expansion coincides with the country’s recent move to open up its gaming market, citing the population of over 200 million and its potential as one of the fastest-growing gaming markets in Latin America.
On Tuesday, DigiPlus shares rose by 0.84%, or 25 centavos, to P29.90 per share. — Revin Mikhael D. Ochave
