DigiPlus Says Brazil Gambling Ban Is a Temporary Disruption as Deposits Stop on September 25

DigiPlus Interactive Corp. has moved to reassure investors after Brazil abruptly shut down its regulated iGaming and sports betting markets under a Provisional Measure issued by President Luiz Inácio Lula da Silva. For PSPs and operators, the immediate issue is not the headline ban itself, but the operational mess around deposits, withdrawals, and whether this is a pause or a longer regulatory reset.

1. Brazil’s regulated market was effectively turned off overnight after the Provisional Measure, with platforms remaining accessible until 11:59 pm on October 5. Deposits were suspended immediately on Friday, September 25, which means the payment flow has already been cut while customer access to sites is still winding down.
2. DigiPlus said it is monitoring the regulatory development closely and has taken the necessary steps to comply with the measure. The company said its immediate priority is orderly handling of customer withdrawals and the return of customer funds within the prescribed period, which is the part PSPs and operators always end up doing under pressure when a market is pulled midstream.
3. The company also said the situation remains fluid and is not final, because the relevant legislative and legal processes are still developing. That matters because the current shutdown is not being treated by the industry as a clean, settled exit; it is a live regulatory change with legal and political moving parts.
4. DigiPlus said the development would not have a material impact on the company, even though other operators in the market are clearly exposed. Among the names mentioned are Entain, Paddy Power, FanDuel, PokerStars, and Sportsbet.
5. Flutter called the move “extreme disappointment” and said it was exploring all available options, including an appeal. The company also argued that without Congressional approval, the measure would not be valid in 120 days of its initial announcement.

The broader issue for high-risk payment teams is that licensees do not appear to be getting compensation for upfront licensing fees, while illegal gambling sites are already mushrooming in the wake of the measure. In other words, Brazil has created the kind of environment where money flow, refund processing, and enforcement pressure all collide at once.