DigiPlus Eyes South Africa Expansion Amid Regulatory Uncertainty in the Philippines

1. International Expansion: DigiPlus Moves Into South Africa

Background:
DigiPlus Interactive Corp. has announced its entry into the South African market, marking a significant step in its global expansion strategy. The company, already present in Southeast Asia and Latin America, now sets its sights on Africa.

Why South Africa?
The expansion comes amid rising regulatory uncertainty in the Philippines, where DigiPlus is headquartered. To mitigate risks and diversify its exposure, the company is accelerating its international footprint.

Market Potential:

• South Africa is the most developed online gambling market in Africa
• Digital sports betting accounts for nearly half of the country’s gambling revenue
• Between 2023 and 2024, the industry exceeded ZAR 28.97 billion (approx. USD 1.6 billion)
• Average annual growth forecast: 5%, driven by mobile penetration and demand for live sports wagering

Executive Commentary:
Chairman Eusebio Tanco said:
“South Africa is not only the largest online gambling market in Africa but also the gateway to Africa’s digital future. From Southeast Asia to Latin America and now Africa, we are committed to responsible innovation, local compliance, and building culturally connected products.”

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2. Local Licensing Strategy in South Africa

Licensing Plan:
DigiPlus intends to apply to the Western Cape Gambling and Racing Board (WCGRB) for multiple licenses:

• National manufacturer license
• Bookmaker license
• Bookmaker retail license
• Key employee permits

Application Process:

• Requires integrity checks on the company and its ultimate beneficial owners
• Involves platform testing and WCGRB review
• Estimated licensing timeline: at least six months

Regulatory Environment:

• The company will establish a local South African entity in compliance with foreign ownership rules
• South Africa is considering the Remote Gambling Bill, which proposes the legalization of online casinos (currently prohibited)
• The bill signals regulatory openness and long-term opportunity for compliant operators

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3. Philippines Context: Regulation vs. Prohibition

Domestic Pressure:
There is a growing call within the Philippines for a full ban on online gambling.

Company Position:
Tanco broke the company’s silence, stating:
“We are not part of the problem — we are part of the solution.”
He warned that outright bans would push consumers into unregulated, riskier platforms and emphasized that online gambling is an irreversible trend.

Supporting Data:

• According to the International Association of Gaming Regulators (IAGR), 177 out of 195 countries globally have chosen to regulate online gambling
• Research by Regulus Partners and Arden Consult suggests that restricting legal gambling often increases illegal platform usage

Voluntary Compliance Measures (since Nov 2024):

• Know-Your-Customer (KYC) verification
• Age validation
• Self-exclusion systems
• Responsible gambling tools such as spending limits and usage alerts

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4. Call for Inter-Agency Regulatory Framework

Current Progress:

• PAGCOR has enhanced accreditation, tightened ad policies, and launched responsible gambling initiatives
• DigiPlus supports these efforts and calls for them to be strengthened — not scrapped

Proposed National-Level Coordination Involving:

Agency	Regulatory Role
BSP (Central Bank)	Payment systems & financial compliance
SEC (Securities Commission)	Market disclosure & capital oversight
NTC (Telecoms Commission)	Online content and advertising regulation
NBI (National Bureau of Investigation)	Crime prevention, anti-money laundering

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5. Conclusion: Globalization as a Strategic Response

DigiPlus’s push into South Africa represents both a strategic response to domestic headwinds and a first-mover advantage in Africa’s emerging regulated markets. The company’s core message:

“We are not avoiding regulation — we are committed to helping build it.”