DigiPlus cites regulatory and global factors as causing dip in Q1 earnings
Philippine operator DigiPlus has reported a sharp decline in first-quarter earnings due to regulatory changes and outside economic pressures.
The company posted net income of PHP2.8 billion (US$45.7 million)1 PHP = 0.0163 USD
2026-05-06Powered by CMG CurrenShift for the three months ending March 2026. That’s a 33% decrease compared to the same period last year. Revenue also saw a steep year-on-year decline, down 25% to PHP17.2 billion (US$280 million)1 PHP = 0.0163 USD
2026-05-06Powered by CMG CurrenShift. EBITDA was down 42%.
The downturn is being blamed on new regulations leading to issues with payment channels. Restrictions on e-wallets for online gaming platforms have disrupted user activity and transaction volumes.
These changes followed directives issued in August by the Bangko Sentral ng Pilipinas, which led major e-wallet providers to de-link from gambling operators.
“Our first quarter performance reflects the softness following the delinking of licensed gaming platforms from e-wallet access points, which has affected user activity and transaction flows,” DigiPlus Chairman Eusebio H. Tanco said in a statement.
“Nonetheless, our fundamentals remain intact, and we remain confident in the long-term growth trajectory of the business as we adapt our payments ecosystem, strengthen player engagement, and continue to lead with responsible, innovative digital entertainment,” he added.
Despite the year-on-year decline, DigiPlus has seen some stability. Quarterly revenue was mostly consistent compared to the previous quarter, and net income saw an increase of 15%. This was supported by some gains from financial investments.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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The Backstory
What’s driving the earnings slide
DigiPlus’ weaker first quarter lands after months of payment-system turbulence that reshaped how Philippine players move money on licensed gaming platforms. The heart of the issue: e-wallet access to regulated apps was curtailed, pinching transaction volumes that power daily betting and bingo spend. The company has said the disruption hit both user activity and conversion, with knock-on effects on revenue and EBITDA. While quarterly numbers show some sequential stabilization, the backdrop remains a systemwide reset in payments that began last year and is still working through the profit and loss.
The latest figures follow a pattern that emerged when major e-wallets de-linked from gaming platforms. As access points narrowed, DigiPlus had to route customers to alternative rails, often with more friction and higher costs. The changes have widened the gap between demand and fulfillment: bettors still want to play, but fewer instant, low-cost ways to fund wallets can sap frequency and ticket size. That thesis is consistent with the company’s earlier disclosures and underscores why the payments mix has become a strategic variable for growth in 2026.
How a 2025 policy pivot set the tone
The immediate catalyst traces back to the Bangko Sentral ng Pilipinas, which in August ordered e-wallet providers to disconnect in-app access to licensed gaming platforms. In the quarter that followed, DigiPlus reported its net income fell 59% to PHP1.71 billion as user activity and transactions slowed, pulling revenue down 23% and EBITDA down 55% in the period. The company still posted stronger nine-month 2025 results due to earlier momentum, but the quarterly shock made clear the sensitivity of its model to payment-channel availability. For details on that step change and the company’s initial response, see DigiPlus Q3 earnings drop 59% after gambling transactions blocked on e-wallets.
That policy ripple did more than dent a single quarter. It rewired incentives across the ecosystem. Wallet providers tightened controls to reduce regulatory risk exposure. Operators faced higher customer-acquisition and retention costs as familiar top-up habits were interrupted. Government fee collections even reflected the slowdown, with DigiPlus noting lower quarterly payments under the e-wallet regime. Those second-order effects still color the company’s 2026 outlook: restoring seamless funding is now central to reaccelerating engagement.
Rebuilding the payments on-ramps
DigiPlus has moved to bolt on new funding options to hedge against digital wallet limits. A recent partnership with kiosk operator Pay&Go opens more than 3,500 cash-in locations nationwide for BingoPlus users, with ArenaPlus and GameZone to follow. A cash-out feature is slated for early 2026, signaling a push to recreate end-to-end convenience outside the dominant e-wallet apps. Read more in DigiPlus partners with Pay&Go for e-wallet top ups.
The kiosk route is pragmatic. It meets players where they already pay bills and load telco credits, reduces reliance on any single digital channel and can improve authorization rates. It also carries trade-offs. Cash-based networks add physical steps that can lower frequency and complicate real-time play. Costs can be higher than in-app transfers. That’s why DigiPlus is likely to pursue a portfolio approach — kiosks, over-the-counter banking, card rails and selective wallet integrations — to spread risk and reclaim liquidity at checkout.
Payment diversification also aligns with compliance optics. Both companies have emphasized central bank certification and adherence to the national gambling regulator’s rules. That framing matters as operators seek durable, regulator-friendly rails that don’t get unplugged midcycle. The goal is resilience: multiple compliant pathways so a shift in one channel doesn’t freeze the funnel.
Content plays to keep users engaged
While engineering new on-ramps, DigiPlus is also feeding the top of the funnel with branded content designed to lift session starts and stickiness. The launch of Manny Pacquiao-themed digital casino titles across BingoPlus, ArenaPlus and GameZone adds a high-recognition hook for local players. The company says nine titles are planned, with several already live, embedding the boxer’s story and Filipino motifs into gameplay. Details are in DigiPlus launches Manny Pacquiao igaming titles.
The bet is straightforward: if funding is a little harder, make the content more compelling so users overcome friction. Celebrity IP can also support acquisition marketing in a more restrictive advertising environment. That complements product work that earlier buoyed results, including new game launches and fresh approvals from the state regulator that helped offset some of 2025’s headwinds. Combined with payments repair, content is meant to stabilize daily active users and average revenue per user until full wallet convenience returns.
Going offshore to smooth regulatory risk
DigiPlus is extending its footprint to diversify revenue beyond the Philippines. The company set up an international base in Singapore, branded DigiPlus Global, to manage partnerships and entry into regulated markets. The hub is an administrative center, not a point of sale in Singapore, but it provides a platform to run operations for markets where the company holds or seeks licenses, including Brazil. See DigiPlus Interactive launches global hub in Singapore.
Expansion plans now include South Africa, where DigiPlus is preparing applications for a National Manufacturer License, Bookmaker License and Bookmaker Premises License with the Western Cape Gambling and Racing Board. The process involves probity checks, board reviews and platform testing over at least six months. South Africa’s online betting sector has posted strong growth, with mobile usage and live sports demand as tailwinds. Learn more in DigiPlus global expansion continues with South Africa launch.
Brazil is another plank. DigiPlus secured a license to run sports betting and bingo there, appointing a regional lead to build out operations. The company has also flagged a market entry timeline in 2026 in related disclosures. Wide geographic spread won’t fully immunize results from Philippine policy shifts, but it can cushion quarter-to-quarter volatility and showcase cross-market operating leverage once payments normalize at home.
What to watch next
Three markers will indicate whether the first quarter dip is a trough or a trend. First, the ramp of alternative payment rails. The Pay&Go cash-in network and any new bank and card integrations should show up in higher funding success rates and reduced drop-off at checkout. Second, engagement lift from new content. Branded titles are most effective when paired with seamless payments; signs of rising session frequency or time spent would suggest the strategy is working despite friction. Third, early signals from international markets. Progress on South African licensing and the ongoing Brazil buildout could add visibility to a second growth engine as the domestic system recalibrates.
The stakes are material. DigiPlus’ platforms sit at the intersection of digital payments, gaming regulation and entertainment IP. If the company can rewire its payments stack while keeping users active and expanding abroad, the softness reflected in recent quarters could prove temporary. If funding friction persists or spreads, pressure on revenue and EBITDA could linger. The next few quarters will test whether the company’s mix of payments innovation, content and global diversification can restore its growth arc.
