Hot gaming stock DigiPlus catches strays amid ban confusion

A government phase out order on China-focused Philippine Offshore Gaming Operators (POGOs) has caused collateral damage to gambling stocks such as DigiPlus Interactive, even though it is not part of the ban.

DigiPlus, one of the strongest names in the market thanks to surging online bingo revenues, slumped nearly 7 percent on Tuesday morning

It recovered during the afternoon session and finished flat by the closing bell. 

“Articles following the speech qualified the directive to mean only online gaming firms that are China-centric,” Abacus Securities’ research head Nicky Franco said in a note to investors.

Nicky Franco 
Research Head, Abacus Securities 

Buy rating 

He also noted the decline in the share price ahead of President Marcos’ State of the Nation Address “may have been in anticipation of the ban”.

“[W]e don’t think it will be affected and the drop is a chance to add or initiate positions,” said Franco, who has a “Buy” rating on the stock. 

Confusion 

Part of the confusion stemmed from the reclassification of POGOs to Internet Gaming Licensees, or IGLs.

According to the state-run Philippine Amusement and Gaming Corp., POGOs and IGLs cater to overseas players, mainly from mainland China, but also US and European markets.

IGLs are different from online or e-games, which serve domestic players and include games such as e-bingo, sports betting, and online poker.

DigiPlus, which operates the popular BingoPlus online platform, has gained about 240 percent over the past year thanks to surging gaming earnings. CLICK ON IMAGE FOR FULL CHART. (Chart from TradingView) 
About the author
Miguel R. Camus
Miguel R. Camus

Miguel R. Camus has been a reporter covering various domestic business topics since 2009.

Featured News
Explore the latest news from InsiderPH
Thursday, 20 February 2025
Insight to the one percent
© 2024 InsiderPH, All Rights Reserved.