DigiPlus ramps up patron care with P1-B bond to secure winnings

DigiPlus Interactive Corp. is ramping up its consumer protection efforts with the launch of the local online gambling industry’s first surety bond program.

The program promises to guarantee up to P1 million per player. This was rolled out as the sector faces tight government scrutiny.

In a regulatory filing on Thursday, the company led by billionaire Eusebio Tanco said it had partnered with Philippine First Insurance Co. Inc. (PhilFirst) for the initiative.

This means PhilFirst, also led by Tanco, will take responsibility in case DigiPlus defaults on its obligation to pay winnings to players of BingoPlus, ArenaPlus and GameZone.

The surety bond is automatically applied to the deposits of all eligible players of these three games, according to DigiPlus.

“DigiPlus is proud to be the first in the industry to roll out this level of consumer protection,” DigiPlus chair Tanco said in a statement. “With this surety bond, they can play confidently on BingoPlus, ArenaPlus and GameZone, knowing that their funds are safeguarded.”

Players are not required to purchase a separate policy as long as their electronic know-your-customer information is updated, and if they have made at least one successful deposit and are in good standing within the platform’s guidelines.

This comes amid mounting pressure on the local online gambling industry, which may soon face tighter regulations if lawmakers push for reforms.

For its part, DigiPlus has expressed support for “smart, balanced regulation” to protect its patrons. The industry giant recognizes the rise of illicit platforms, which do not provide safeguards for players.

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The firm has likewise highlighted its “self-exclusion” options that are embedded within the DigiPlus app. For example, Tanco said players could set their own time limit, define gaming schedules and apply loss caps.

However, the lack of clarity on online gambling regulations still battered the share price of DigiPlus. It is the most recent addition to the 30-member benchmark Philippine Stock Exchange Index.

Its shares have plunged by 66 percent to P22.20 from its 52-week high of P65.30.

In hopes of plugging the heavy bleeding, DigiPlus launched a P6-billion share buyback program in July.