DIGIPLUS Interactive Corp. (PLUS), the listed gaming and leisure company behind BingoPlus, has applied for three gaming licenses in South Africa, which analysts said is part of its strategy to expand overseas and reduce exposure to stricter gambling rules in the Philippines.
In a disclosure on Wednesday, the company said it submitted applications to South Africa’s Western Cape Gambling and Racing Board (WCGRB), the provincial regulator of betting and gaming activities, for a national manufacturer license, a bookmaker license, and a bookmaker premises license.
The company said WCGRB is considered a preferred jurisdiction for international operators because of its “transparent regulatory processes and digital readiness.”
“The filing of our online gaming license in South Africa marks another milestone in DigiPlus’ global growth journey, as we bring our proven track record of innovation, responsible gaming, and player protection, together with our strength in localizing games for diverse markets, to one of Africa’s most dynamic economies,” DigiPlus Chairman Eusebio H. Tanco said.
On Sept. 22, DigiPlus launched its GamePlus platform in Brazil, giving users access to more than 150 free-to-play and real-money games.
AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said the South Africa applications appear to be the “natural next step” after the company’s Brazil expansion.
“There’s an urgency for PLUS to diversify its revenue stream as the Philippines tightens its rule on online gambling, and we feel this is the right time for PLUS to explore other markets,” he said in a Viber message.
China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the move highlights the importance of risk diversification.
“There’s the evident growth angle since the entry into new markets is expected to boost overall revenues,” he said.
“It makes sense to spread their chips across different jurisdictions so that they’re not overexposed to country-specific regulatory risk,” he added.
He also said the company’s overseas expansion story continues to attract investors.
“From what I’ve seen so far, DigiPlus is carefully executing its expansion strategy. They’re selecting promising gaming markets, [so] this should reassure investors that the company will be disciplined in deploying capital and maintaining profitability,” Mr. Colet said.
Shares of DigiPlus fell by 2.03% or 50 centavos to close at P24.10 each on Wednesday. — Alexandria Grace C. Magno
