The Philippine gaming industry is facing a major turning point. Regulatory policy changes and market transformation are reshaping this important industry, which accounts for 1.2% of the national GDP.
Philippine listed company DigiPlus Interactive Corp recently encountered strategic setbacks. According to the Manila Standard, the company, which owns well-known online platforms such as BingoPlus and ArenaPlus, has seen its planned land-based casino acquisition project come to a standstill.
Acquisition Plan Obstacles and Strategic Transformation Challenges
DigiPlus has been seeking to acquire a physical casino operation license to establish a "online + offline" dual business model. Sources reveal that the negotiation stalemate is mainly due to the uncertainty of domestic gaming regulatory policies in the Philippines.
This is not the first time DigiPlus has attempted to expand its physical business. In November 2024, there were rumors that the company intended to acquire CasinoPlus, which holds a casino license in the Clark area's Hotel Stotsenberg, but DigiPlus denied the rumors at the time citing "no definite plans."
Strong Financial Performance with Underlying Concerns
Despite the setbacks in acquisition, DigiPlus's latest financial data remains strong. The mid-year financial report shows:
• Net profit increased by 60.9%, reaching 8.4 billion pesos (about $147 million)
• Revenue exceeded 47.78 billion pesos (about $827 million)
• Both indicators are leading the industry average
The performance growth is mainly due to the new gaming licenses and business expansion approved by the Philippine Amusement and Gaming Corporation (Pagcor). The company is advancing its market plan in Pasay, expected to commence operations in the fourth quarter of 2025, with an initial investment of 660 million pesos (about $11.4 million).
However, the company's over-reliance on online business (contributing over 90% of revenue) is bringing potential risks, especially in an increasingly strict regulatory environment.
Continuously Tightening Regulatory Environment
The Philippine gaming industry is facing significant regulatory changes:
• July 2024: President Marcos issued an offshore gaming ban
• August 2025: The Senate proposed the "Anti-Online Gambling Act," intending to prohibit electronic wallets from accessing gaming platforms
• The Philippine Central Bank has already required payment institutions like GCash and Maya to sever connections with gaming platforms
Pagcor Chairman Alejandro Tengco publicly opposes the comprehensive ban, pointing out that legal gambling contributes over 200 billion pesos (about $3.47 billion) in public funds to the country each year. However, the uncertainty of the legislative process has already affected market confidence.
Industry Overall Facing Transformation Pressure
DigiPlus's situation reflects the general challenges of the Philippine gaming industry. Physical casino expansion requires obtaining scarce licenses issued by Pagcor, and also involves complex land approval and local relationship coordination.
At the same time, the industry also faces challenges from illegal operations. In 2024, Pagcor successfully blocked 75% of illegal gaming websites, but nearly 2000 platforms are still actively operating, increasing the compliance costs for legitimate businesses.
Future Outlook and Development Path
The Philippine gaming industry is at a crossroads of transformation. On one hand, Pagcor promotes a "safe, fair, and sustainable" development model; on the other hand, legislative bodies seek stricter regulatory measures.
DigiPlus is expanding into overseas markets such as Brazil and South Africa to diversify risks, but the Philippine domestic market remains the cornerstone of its business. The company's ability to find a balance between "shrinking online business" and "obstructed offline expansion" will have a decisive impact on its future development.
As Pagcor Chairman said, "What we need is not a ban, but to let the sun shine in every corner." This statement may indicate the future direction of the industry—achieving sustainable development of the gaming industry through enhanced transparency and compliance.
