Call for online gaming ban spooks DigiPlus stocks
Gaming stocks are seen succumbing to what may be the next phase of government crackdown on local online gambling firms, at least in the near term, with one of the country’s hottest stocks already taking a hit.
Unicapital Securities Inc. equity research analyst Jeri Alfonso told the Inquirer that gaming stocks were expected “to face volatility in the near term,” especially due to the sector’s sensitivity to regulatory risks.
“Investors must remain cautious on trading the stocks in the gaming sector,” Alfonso said in a text message.
This comes after Senate President Francis Escudero called for a review of the Philippine inland gaming operator (Pigo) scene, which includes listed companies, such as DigiPlus Interactive Corp. and Bloomberry Resorts Corp.
These firms are among the 44 Pigo licensees of the Philippine Amusement and Gaming Corp. (Pagcor) as of June last year.
DigiPlus, which operates popular games like Bingo Plus and the only noncasino operator on the list, closed 3.31 percent lower to P33.60 each on Monday following the news, although it went as low as P31.35 within the day.
Melco’s rethinking
Belle Corp., a listed portfolio company of the SM Group, closed at P1.53 per share, down by 0.65 percent.
Macau casino tycoon Lawrence Ho-led Melco Resorts & Entertainment Ltd. is exploring “potential strategic alternatives” for City of Dreams Manila. It has hired financial advisors to decide on its next move.
Bloomberry, operator of Solaire Resort and Casino, was an outlier as it rebounded by 5.64 percent to P3.37 per share. This came after a decline of 10.1 percent last week amid talks that it may be stricken off the Philippine Stock Exchange Index during the next rebalancing in August.
Not just Pogo
Meanwhile, Escudero’s proposal comes months after President Marcos ordered a total ban on Philippine offshore gaming operators (Pogos).
Alfonso pointed out, however, that “a full-on ban is unlikely,” noting that the Pigo sector was a revenue provider for the government, with Pagcor ranking as the third-biggest revenue source after the Bureau of Internal Revenue and Bureau of Customs.
Alfonso also stressed that it could “deal a heavy blow to government funds.”
“Rather than a full ban, we think the government will implement stricter policies instead,” she added.
Will Cabangon, president of AAA Southeast Equities, said on X that Monday’s decline may be “a good entry” for DigiPlus investors before a potential PSEi inclusion.
“[I] think the chances of an online gaming ban are very low,” he said. “More like this is just a headline grabbing ahead of an election.”
Unlike traditional online gambling, Pigo games—first introduced in 2018—need to be connected to physical gaming machines or tables.
