BIZ BUZZ: DFNN warns vs rise of gray online gaming sector

Just when things started heating up, the gaming sector saw one of its most daunting challenges yet.

We’re talking about Sen. Sherwin Gatchalian’s proposed bill imposing stricter rules on the sector, a move that has dealt a huge blow to former stock market darling DigiPlus Interactive Corp.

While the Eusebio Tanco-led gaming and entertainment giant has already launched a P6-billion share buyback program to jolt life back into its falling share price, other challenges loom that may continue to unnerve investors.

DFNN Inc., which operates gaming technology provider IEST Inc., stressed that new regulations must be properly calibrated to accommodate “distinct gaming formats.”

See Also

BIZ BUZZ: UN nod secured for digital progress

Otherwise, low-income players could end up seeking “alternatives from unlicensed or offshore platforms.”

“These grey market operations, which often exist beyond regulatory reach and with nonexistent player safeguards, could undermine the very protections that the legislation seeks to reinforce,” DFNN warned in a statement over the weekend.