DigiPlus approved to operate in Brazil

DigiPlus [PLUS 21.10, up 1.7%; 48% avgVol] [link] was one of 93 companies that received authorization to operate betting websites in Brazil. The list of winning applications was published on October 1 by Brazil’s Ministry of Finance. PLUS had originally said that it expected to obtain this authorization by “the end of November” after it applied to take part in Brazil’s newly legalized domestic gambling industry.

MB bottom-line:  Maybe big if true, but it feels a little weird to not hear about it from PLUS directly. Brazil is a massive potential market, and like my discussion with ALTER yesterday, this move by PLUS told me that it was looking to expand but only in jurisdictions that play to its strengths. PLUS likes Brazil because it’s a newly-legalized market where it can (potentially) make big sweeping marketshare gains. It won’t be fighting against reinforced incumbents in an already saturated market. Its application was approved along with nearly 100 other companies, so they’re likely not the only group who had this idea, and the competition will be fierce, but I at least like their approach. We still don’t know the scope of PLUS’s plans in Brazil, so it’s hard to get a feel for how significant this could be for FY25.

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