Philippine lawmakers are intensifying their scrutiny of the online gambling industry, triggering a market shake-up that has hit key players hard. DigiPlus Interactive Corp., the country’s top digital gaming operator, suffered a sharp stock plunge after a new Senate bill proposed tighter restrictions on the sector.
The bill, introduced by Senator Sherwin Gatchalian, aims to raise the gambling age to 21, ban the use of e-wallets like GCash and Maya for betting, and enforce a PHP 10,000 minimum deposit—measures designed to curb access for individuals at risk. Gatchalian cited addiction, financial hardship, and rising crime as drivers behind the proposed crackdown, warning that mobile phones have become “portable casinos” putting the nation’s youth at risk.
DigiPlus Stock Plummets Amid Uncertainty
Investor reaction was immediate. DigiPlus shares hit the 30% intraday limit before closing down 14% at PHP38.75 on July 3. The sell-off has erased nearly PHP120 billion in market cap since early June, despite the stock still showing a 40% gain year-to-date and a 185% rise over the past year.
Trading volume surged to eight times the three-month average. Bloomberry Resorts Corp., which recently entered the digital space with its MegaFUNalo platform, also slid 6% to PHP4.70.
“The gaming sector is under heavy pressure due to regulatory risk, and DigiPlus is the most exposed,” said Wendy Estacio-Cruz of Unicapital Securities.
Investor Jitters Spread Beyond DigiPlusAnalysts point to a broader lack of confidence in policy direction. Toby Allan Arce of Globalinks Securities noted that uncertainty is driving both institutional and retail investors to exit the sector. DigiPlus was the day’s most actively traded stock, even as the broader Philippine Stock Exchange Index stayed flat.
Industry Pushes Back, Officials Urge Caution
DigiPlus dismissed the sell-off as “speculation” tied to the Senate bill and a separate prohibition bill in the House. The company emphasized that both proposals are far from becoming law and reaffirmed its operational stability. It also highlighted its international growth plans, including a Brazil launch in September and a new Singapore-based global unit.
Meanwhile, the Bangko Sentral ng Pilipinas is crafting new rules to force banks and e-wallets to protect users from gambling-related risks better. The Department of Finance is also exploring new tax and policy measures for digital gaming.
PAGCOR Defends Regulated Online Gaming
Despite growing criticism, the Philippine Amusement and Gaming Corporation (PAGCOR) continues to back regulated e-gaming. In Q1 2025, online platforms brought in PHP51.39 billion, nearly half the industry’s PHP104.12 billion gross gaming revenue—outpacing casinos for the first time.
Chairman Alejandro Tengco emphasized the need to strike a balance between innovation and consumer safeguards, particularly as the market expands more rapidly than regulations can keep pace.
Industry insiders have urged lawmakers to distinguish between legitimate domestic operators and illegal offshore firms like the now-banned POGOs. One source told NEXT.io, “This is not POGO. This is a thriving, job-creating, tax-paying industry.”
Analysts Split on What Comes Next
Some see a short-term bottom forming. Abacus Securities’ Nicky Franco suggested DigiPlus could stabilize and rebound by late July when it’s expected to join a major index. Still, Estacio-Cruz warned of further downside if lawmakers don’t clarify their position soon: “Sentiment may have sparked the sell-off, but it won’t recover until the fog lifts.”
