DigiPlus hopes for rebound after income drop in third quarter
Philippine igaming operator DigiPlus Interactive says it is focusing on re-engaging high-value users and offering additional payment options as it aims to rebound from its poor third-quarter earnings.
Net income for DigiPlus dropped to PHP1.71 billion (US$29.0 million)1 PHP = 0.0170 USD
2025-11-24Powered by CMG CurrenShift during the third quarter, down sharply from PHP3.52 billion (US$59.8 million)1 PHP = 0.0170 USD
2025-11-24Powered by CMG CurrenShift recorded a year earlier.
In a statement, DigiPlus President Andy Tsui said the decline was because of regulators’ recent crackdown on igaming payments through financial apps.
In August, the Bangko Sentral ng Pilipinas ordered e-wallet firms to remove links to betting platforms, because of concerns over digital gambling among younger Filipinos. Major e-wallets, such as GCash and Maya, complied, resulting in a sector-wide slowdown.
Tsui added that the company’s customer service teams have been contacting major players in recent weeks and expressed optimism as they have recorded a steady recovery in the past couple of months.
He also noted that there had been signs of recovery over the past two months and that the company was expanding its payment network through partnerships with payment centers. It also recently gained a controlling stake in International Entertainment, which owns the New Coast Hotel in Manila.
Despite the effect of the August regulations, the electronic games industry posted a 17% revenue rise in the third quarter, buoyed by strong activity in July.
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The Backstory
Why the rebound matters now
The sharp swing in DigiPlus Interactive’s quarterly performance is a stress test for the Philippines’ fast-growing electronic games economy and a case study in how policy can whipsaw digital revenue. The Bangko Sentral ng Pilipinas in August ordered major e-wallets to cut off in-app access to betting platforms, a move designed to curb youth gambling that instead froze transaction flows across licensed operators. DigiPlus’ latest guidance suggests management is leaning on high-value users, customer outreach and new payment rails to stabilize cash generation after the shock. The company’s execution will help show whether licensed igaming can adapt to tighter payments oversight without ceding ground to unregulated channels.
Before regulators acted, DigiPlus was riding a multi-quarter expansion in users, games and licenses. That momentum is the baseline against which today’s reset should be judged—and it explains why any signs of recovery will be watched by investors, rivals and policymakers.
From surge to setback
Through early 2025, DigiPlus printed outsize gains, reporting first-quarter net income of PHP4.2 billion on a 69% jump in revenue, powered by new titles across BingoPlus, GameZone and ArenaPlus. Management touted scale, product innovation and an expanding regulatory footprint as tailwinds. Those numbers set expectations that a healthy digital funnel—acquisition, engagement, monetization—was intact and broad-based.
By the third quarter, the tone changed. After the central bank’s directive, major wallets, including GCash and Maya, disconnected licensed platforms, cutting off a mainstream onramp for deposits and play. DigiPlus’ net income fell to PHP1.71 billion, a 59% drop year over year, while revenue slid 23% and EBITDA dropped 55%, according to a related update on third-quarter results. The company said nine-month metrics still showed growth—net income up 16%, revenue up 30%—but the quarterly hit underlined how concentrated the payments channel had become.
That divergence—strong first-half, weak third quarter—frames today’s rebound pitch. To regain trajectory, DigiPlus is targeting big spenders, retooling payments with over-the-counter partners and diversifying acceptance beyond the app links regulators scrutinized. The company’s move to expand payment centers and pursue a controlling stake in a Manila hotel operator also hints at hedging pure-digital exposure with physical footprint and hospitality cross-sell.
Payments squeeze and the industry’s response
The e-wallet ban’s immediate effect was transactional: fewer deposits, lower bet volume, less rake. But the longer-term risk is behavioral. If friction rises for casual players while offshore alternatives remain a tap away, licensed operators must compete on reliability, brand trust and product depth rather than convenience alone. DigiPlus’ focus on high-value users mirrors a broader pivot across regulated operators toward efficiency and retention over top-line chase.
That shift is visible beyond the Philippines. Canada’s Rivalry trimmed operating expenses 58% and emphasized “high-efficiency acquisition” as it reported Q1 net revenue of CA$1.3 million and a narrower loss. Its strategy—sharper targeting, proprietary product, higher revenue per player—echoes the post-shock playbook DigiPlus is now advancing: build resiliency by deepening value per user and owning more of the tech stack.
For DigiPlus, payments reconfiguration is the chokepoint. The company said taxes and fees paid fell 26% in the quarter due to the policy, despite a nine-month increase, highlighting the fiscal feedback loop. As remittances to the state dip with volume, regulators will weigh consumer protection against the costs of diverting activity. DigiPlus’ reported stabilization in recent weeks suggests alternative rails can work if customers follow, but onboarding and compliance will be the test.
Policy crosswinds across markets
The Philippines is not alone in recalibrating the business terms of regulated gambling. In Australia, leading bookmakers stripped state-league soccer from their boards during a fee dispute with Football Australia, pushing back against a higher levy that could reach “almost 30% of revenue” on some matches. The standoff, detailed after bookmakers removed state-league soccer markets, underscores how price-setting by sports rights holders and regulators can shift supply overnight, fragmenting markets and complicating integrity oversight.
In New Zealand, a proposed igaming bill has sparked warnings about community reinvestment and the risk of profits flowing offshore without mandated givebacks. Sport Otago’s call for amendments captures a different policy pressure point: ensuring that regulated digital gambling funds local programs and mitigates social costs. While not a one-to-one comparison, these debates rhyme with the Philippines’ balancing act—protecting consumers, preserving legitimate economic activity and maintaining public benefit funding.
The common thread is volatility. Whether via payment gates, product fees or sponsorship rules, small regulatory adjustments can produce big revenue swings. Operators able to reroute payments, localize compliance and prove community value are better positioned to keep licenses and customer trust.
What investors and regulators will watch next
Three signposts will indicate whether DigiPlus’ rebound has legs:
- Payments recovery: The pace at which over-the-counter partners and alternative channels replace e-wallet volume. Faster substitution should lift deposits, smooth churn and stabilize tax remittances.
- User mix and monetization: Management’s emphasis on high-value users can improve margins but risks concentration. Watch net revenue per user, retention and average bet size for signs the model is diversifying, not narrowing.
- Licensing and product cadence: Earlier growth was propelled by new games and PAGCOR approvals. If that pipeline remains active, product breadth could offset channel friction and support long-term scale.
There is also a macro stake. The electronic games industry still posted a third-quarter revenue rise at the sector level, buoyed by July’s strength before restrictions tightened. If the rebound extends into the fourth quarter, it will argue that regulated operators can adapt under stricter rules—by steering players to compliant payments and tightening controls on younger users. If not, unlicensed alternatives may gain share, undermining both consumer protection and tax collection.
For now, DigiPlus is signaling stabilization, guided by a more selective growth approach seen in peers pursuing efficiency over expansion at any cost. The months ahead will test whether that discipline can close the gap the payments crackdown opened—and whether policy can evolve in a way that protects consumers without throttling the very compliance infrastructure the market relies on.
