On Tuesday, the industry leader unveiled its most ambitious push beyond the online gambling scene with plans to take control of International Entertainment Corp. or IEC.
IEC is the Hong Kong-listed parent firm that operates New Coast Hotel Manila, once known as the New World Manila Bay Hotel, in Malate.
Management’s view
“This move marks a defining step toward DigiPlus’ long-term goal to create the most innovative and enjoyable experiences through an entertainment ecosystem, powered by cutting-edge technology and localized products for different cultures,” said DigiPlus chair and business tycoon Eusebio Tanco.
“Through this transaction, we are expanding our omnipresent ecosystem—bridging digital innovation with real-world experiences—to create a new era of entertainment that is engaging, responsible, and globally competitive,” he added.
What’s the deal about?
DigiPlus is buying convertible notes worth HK$1.6 billion (about P12 billion) that will give it the option to acquire nearly 54 percent of IEC.
The notes, before they are converted, will pay an annual interest rate of 3 percent.
Online gambling slowdown
The move comes as the operator of popular gaming platforms such as BingoPlus, ArenaPlus, and GameZone seeks new growth avenues as core online gambling earnings slow down amid an ongoing regulatory crackdown.
At the same time, traditional casino operators are moving into lucrative online games, but it hasn’t been an easy transition.
These challenges were also noted by tycoon Enrique Razon Jr.’s Bloomberry Resorts, which acknowledged the slower-than-expected ramp-up of its online gaming platform MegaFUNalo!
Last August, SM Investments CEO Frederic DyBuncio said their gaming affiliate Belle Corp. had paused plans to enter online gaming due to unclear regulations.
Gaming expert’s view
Unicapital gaming analyst Jeri Alfonso said DigiPlus appears to be countering the changing gaming landscape with an offensive move of its own.
“The tighter regulations that were imposed mid-year significantly dented participation activity of PLUS’ online gaming platform, and dimmed its growth prospects moving forward,” she said.
“In response, the company appears to be pivoting, and expanding its revenues beyond the ‘still-weak’ e-gaming industry by entering the land-based casino business model,” she added.
DigiPlus boosts hotel, restaurants portfolio
“By getting into a physical casino, it won’t just earn from the casino game offerings alone, but they can also make money from hotel rooms, restaurants, and the function areas,” Alfonso said.
“The buyout is essentially a package deal and gives the company a multi-faceted business in a single acquisition,” she added.
New Coast Hotel Manila expansion is underway
IEC will use part of the funds from DigiPlus to support ongoing renovations at New Coast Hotel Manila, which currently has 203 rooms, 96 gaming tables, and 495 slot machines.
The casino revamp is targeted for January 2026 while the hotel upgrade is slated for completion by the third quarter of next year.
IEC, which assumed operations of New Coast Hotel Manila in May 2024, said revenues from gaming reached HK$509.9 million (P3.8 billion) while revenues from hotels and restaurants amounted to about P550 million.
The hotel’s casino was formerly one of Pagcor's privatized Casino Filipino sites, known as Casino Filipino New Coast, before it was turned over to the new operator last year.
HK firm eyes $1-B integrated casino
IEC also secured a Philippine Amusement and Gaming Corp. provisional license in Sept. 2023 to build and operate a $1-1.2 billion casino and integrated resort in Manila.
The license runs until July 11, 2033, IEC said in a regulatory filing.
The project is expected to have a total gross floor area of 250,000 square meters, 800 luxury hotel rooms and 20,000 sqm of gaming and retail space.
Cautious trading on PLUS
DigiPlus, trading under stock symbol PLUS, opened flat at P26.30 each after a one-hour trading suspension.
Its shares slumped 2.3 percent to P25.70 each on Tuesday’s morning session.
The company has gained 30 percent over the past 12 months but is trading down 60 percent from its recent high of P65.30 each amid higher regulatory controls on online gambling.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
