DigiPlus Reports No Material Impact from Brazil’s Provisional Online Gambling Ban as Flutter Details Revenue Exposure

Brazil‘s President Luiz Inácio Lula da Silva has banned all sports betting and online casino games through a provisional measure published on 25 September. The action took effect immediately ahead of next month’s election, although regulated platforms remain accessible until 11:59 p.m. on 5 October to permit customer withdrawals.

DigiPlus Interactive Corp, granted an iGaming license in late 2024, stated it is closely monitoring recent regulatory developments in Brazil and taking all necessary steps to comply with the government’s directive. The operator added that the situation remains fluid and is not final, as the relevant legislative and legal processes continue to develop.

DigiPlus placed immediate priority on orderly response measures, including timely processing of customer withdrawals and return of funds within the prescribed period. Based on its assessment, these developments are not expected to have a material impact on DigiPlus’ overall financial or operating position. The company will continue to monitor the processes and provide updates as appropriate.

Flutter Entertainment, operator of FanDuel, PokerStars, Sportsbet and Paddy Power, has ceased operating sports betting and iGaming in Brazil. Flutter is extremely disappointed by this development and is reviewing all available options, including the potential to appeal. It continues to engage constructively with the Brazilian authorities on sensible, effective regulation to protect customers from the risks of the unregulated market.

The executive order is expected to require Congressional approval or amendment within 120 days to remain in effect. Should Congress reject this measure, Flutter would expect its online sports betting and iGaming activity to recommence. As reported by Inside Asian Gaming, if Flutter Brazil is unable to operate for the remainder of the year, this is expected to result in a reduction to 2026 revenue of approximately $70 million and a reduction in adjusted EBITDA of approximately $20 million. The company is assessing associated non-cash accounting implications.

The Provisional Measure’s Built-in Uncertainty

The 120-day Congressional review window introduces a structural limitation on the ban’s permanence. Operators face an environment where executive action can impose swift market closure, yet legislative veto remains a realistic path to reinstatement. This sequence compresses decision timelines for compliance, customer handling and financial provisioning.

Licensees’ Exposure to Policy Reversal

DigiPlus’ assessment of immaterial impact reflects a diversified global portfolio that absorbs Brazil-specific disruption without broader strain. Flutter’s quantified exposure, by contrast, demonstrates how concentrated online revenue streams can produce measurable hits even in a short suspension. Licensed operators must now calibrate withdrawal logistics against the possibility that Congressional inaction revives the regulated market before year-end. Those positioned across multiple jurisdictions hold an advantage in absorbing such provisional shocks without derailing forward guidance.

Reporting: Inside Asian Gaming

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