The market remains wary after President Marcos’ surprise ban on Philippine Offshore Gaming Operators (POGOs), announced during his 2024 State of the Nation Address.
DigiPlus, now trading at P19.54 per share, is down about 28 percent year-to-date after plunging 70 percent from its recent peak of P65.30.
It still holds a commanding P88.4-billion in market value, nearly double that of casino giant Bloomberry Resorts (-6.5 percent to P4.03), but that has offered little comfort to investors amid a stampede toward the exit and a still-uncertain regulatory fate.
“PLUS suffered another brutal selloff amid renewed regulatory concerns,” Jeri Alfonso, gaming analyst at Unicapital Securities, said in a text message to InsiderPH on Thursday.
“If President Ferdinand Marcos Jr. announces a ban on online gaming, or even just tighter restrictions that could significantly dampen player participation, during his upcoming SONA [State of the Nation Address], PLUS’ revenues could fall,” Alfonso added.
Prior to this, he upheld the ban on online cockfighting, or e-sabong.
The online gaming sector has been a fast-growing revenue driver for the Philippine government.
And while there’s a strong case against an outright ban, since it could drive operators underground, where they may thrive unchecked. many investors would rather sell now and ask questions later.
“It’s difficult to tell where the bottom is. As long as there’s no firm regulatory direction, the market will likely stay cautious. We will have to wait for the SONA,” Alfonso said.
Further complications for index rebalancing
DigiPlus is also a heavy favorite to join the 30-member PSE index next month.
“Now, that creates a tricky situation for index-tracking funds should PLUS get in the PSEi this August. They’ll be holding a gaming stock facing regulatory headwinds, with no quick way out until the next rebalancing,” Alfonso said.
DigiPlus supports strong regulations
On Thursday, DigiPlus reiterated its call to strengthen gaming regulations.
Last week, it also launched a P6-billion stock buyback program to support the share price.
As for risks from proposed new regulations, the company, which booked P4.2 billion in profit during the first three months of 2025, said it is too early to assess.
“We highlight that the bills are still in the early stages of the legislative process and has not been enacted into law,” it said in a stock exchange filing on Thursday.
“DigiPlus remains fully operational and committed to delivering value to our customers and shareholders. We continue to conduct business as usual and remain confident in the long-term growth potential of the company,” it added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
