Philippines banned Pogos catering to Chinese betters, but world’s top gambling stock thrives
- DigiPlus shares are up 151%, and unaffected by the Philippines’ offshore ban, but lawmakers are reviewing regulations on local online gambling
The world’s hottest gambling stock is riding strong demand for online betting at home in the Philippines, even as the global industry faces increasing scrutiny.
Shares of DigiPlus Interactive Corp. are up 151 per cent so far this year, more than any other casino stock with a market value of over US$1 billion. The stock has surged twelvefold in two years, with help from a pivot to the internet during the pandemic. It closed 5.2 per cent higher on Wednesday after flirting with a fresh record high.
The gains stand out amid growing concerns over the impact of online gambling on society around the world. The Philippines last month banned offshore operations that cater to Chinese gamblers, as part of efforts to curb crimes including money laundering.
DigiPlus is benefiting from its prime position in the domestic online gaming market, which saw revenue surge 525 per cent in the latest quarter compared with a year ago. The company formerly known as Leisure & Resorts World Corp. established a presence as a bingo hall operator before changing its name and shifting to target tech-savvy younger players with disposable income.
“We view its growth trajectory to be sustainable,” said Gabryle Aguila, equity research head at Unicapital Securities Inc. “Its move into the digital space with great execution translated into growing a brand that has already built decades worth of awareness.”
Financial success has also helped boost the stock’s appeal. DigiPlus’s second-quarter net income expanded about 400 per cent year-on-year to 3.2 billion pesos (US$57 million). That’s more than double the profit posted by Philippine bricks-and-mortar casino operator Bloomberry Resorts Corp.