DigiPlus, which trades under the stock symbol PLUS, fell amid speculation a proposed law to ban Philippine Offshore Gaming Operators, or POGOs, could lead to broader online gambling restrictions.
President Marcos earlier ordered a full POGO ban to be implemented by the end of 2024.
Razon reinstated as gaming king
Razon’s Bloomberry Resorts Corp., operator of Solaire resorts and casinos, rose about 3 percent to P8.60 per share.
This values the company at P98.5 billion against DigiPlus Interactive’s P79.34 billion, which held the lead after reaching a a high of P24.60 per share last Aug. 28.
On Monday, PLUS rebounded from the session low of P15.30 each to finish 5.63 percent higher at P18 per share. Trading value reached nearly P731 million, accounting for nearly a fifth of turnover during the session.
PLUS’ rapid rise was fueled by surging online bingo and other digital gambling revenues.
It is trading about 27 percent lower from its recent high but gains since the start of the year remain strong at 125 percent.
Analyst view
Alfred Benjamin R. Garcia, head of research at AP Securities, commented that the e-gaming concerns were likely an overreaction.
He noted that the price drop aligns with their hold rating for DigiPlus Interactive (PLUS), with a price target of around P18 per share.“A ban on e-games is not going to fly,” Garcia said.
“Pagcor has incentivized the segment too much to allow it to get shut down all of a sudden,” he added, referring to state-run gaming regulator Philippine Amusement and Gaming Corp.
“We might see tighter regulation, but not an outright ban,” he said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
