S&P Global assigns DigiPlus B+ credit rating, with stable outlook

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2026/09/11: Moody’s expects DigiPlus earnings to fall 20% this year before staging recovery through 2028 on expansion initiatives 2026/07/06: Investor urges DigiPlus to launch substantial share repurchase due to “absurd” valuation of shares 2025/02/27: Philippine gaming technology firm DigiPlus setting up Singapore office to drive global expansion 2025/05/06: DigiPlus Interactive launches global hub in Singapore

The Backstory

A market leader meets a harsher policy cycle

DigiPlus Interactive Corp. has moved from rapid domestic expansion to a more complicated phase in which scale, regulation and investor confidence are being tested at the same time. The Philippines online gaming operator remains the dominant force in a market that was legalized in 2020 and became more attractive after tax rates were lowered in 2023. But the regulatory backdrop has shifted sharply since then, led by restrictions on payment access and political scrutiny of online gambling.

That tension explains why credit agencies are now focused less on demand and more on policy risk. S&P Global’s B+ issuer rating and stable outlook rest on DigiPlus’ strong position, product breadth and ability to adapt, but the same assessment places the Philippines among Asia-Pacific’s “headwind” gaming markets because regulatory uncertainty has become a core credit issue. S&P estimates DigiPlus held 47% of the Philippine online gaming market in 2024 and 41% in 2025, with the nearest competitor at 15% to 20%. That market share gives the company room to absorb shocks, but it also makes DigiPlus the clearest proxy for the sector’s political and regulatory risks.

Payment curbs reset the growth story

The immediate pressure stems from the Philippine central bank’s 2025 directive requiring mobile wallet and payment providers to delink in-app access to online gaming platforms. The policy disrupted transaction flows, reduced user activity and forced operators to rebuild parts of their payment ecosystems. For DigiPlus, whose mass-market base depends on convenient digital payments, the rule change hit both engagement and revenue momentum.

The effect was visible in operating results and later in rating agency forecasts. Moody’s Ratings, in assigning a first-time B1 corporate family rating with a stable outlook, said it expected DigiPlus’ 2026 adjusted EBITDA to fall 20% to about 11.4 billion pesos from 14.3 billion pesos a year earlier. The agency also cited weaker consumer sentiment, high fuel prices and inflationary pressure on discretionary spending. Still, Moody’s expects DigiPlus earnings to recover through 2028, supported by organic growth and expansion initiatives.

S&P’s view broadly follows the same line. It noted that enforcement of e-wallet delinking rules created significant pressure over three quarters, but that monthly active users recovered modestly in the first half of 2026. The distinction matters: The company’s problem is not framed as a collapse in product demand, but as a policy-driven interruption to access and payment behavior. That makes execution on alternative channels, user retention and regulatory compliance central to the credit case.

Investors see a valuation gap

The share price has reflected those concerns more harshly than some investors believe is justified. A group of DigiPlus shareholders led by Tomasz Juroszek, through family investment foundations holding a combined 1.4% stake, urged the board to launch a substantial buyback, arguing the company’s valuation had become disconnected from its fundamentals. In an open letter, the investors said DigiPlus traded at 2.4 times enterprise value to EBITDA, roughly one-third of the peer median, and offered a 32% free cash flow yield.

The letter, described in an investor push for a substantial DigiPlus share repurchase, characterized the market discount as sentiment-driven rather than the result of structural deterioration. The argument is consistent with the rating agency view that DigiPlus retains a strong balance sheet, low leverage and significant cash generation. It also underscores the capital allocation dilemma facing the board: whether to direct cash toward buybacks, international growth, domestic product development or strategic investments.

That debate is likely to intensify if earnings stabilize. A buyback could signal confidence and take advantage of depressed multiples, but it would compete with capital needs tied to international expansion and possible exposure to land-based or hybrid gaming assets. Moody’s noted DigiPlus’ investment in International Entertainment Corp., parent of Manila’s LaVie Resort & Casino, could give it a controlling 53.89% stake through convertible notes. The move may offer tax and diversification benefits, but it also adds exposure to IEC’s capital commitments through 2033.

Singapore and Brazil point to a broader strategy

DigiPlus has tried to reduce its dependence on one regulatory market by building an international platform. The company established DigiPlus Global Pte Ltd in Singapore as a wholly owned regional hub for strategic partnerships, talent acquisition and international growth. Management has emphasized that the Singapore entity will not conduct online gaming operations in the city-state, positioning it instead as a corporate and operational support center.

The Singapore move became more concrete when DigiPlus launched its global hub in Singapore, using the office as a base to develop relationships in regulated markets. The decision followed an earlier plan for a Singapore-based company to drive global expansion. Together, the steps show a company trying to convert domestic scale into regional and international optionality while maintaining formal compliance with local rules in each market.

Brazil is the clearest example. DigiPlus secured an online gaming license there, allowing it to operate sports betting and bingo platforms in a newly regulated market. Inside Asian Gaming reported DigiPlus secured the Brazil igaming license at the start of 2025. The market offers growth potential, but also brings the costs and uncertainty of entering a competitive jurisdiction where local execution, marketing discipline and regulatory compliance will determine returns.

Product depth remains the operating defense

At home, DigiPlus has leaned on product development to defend engagement. Its portfolio includes BingoPlus, sportsbook ArenaPlus and casual and arcade platform GameZone. The company has expanded its bingo and arcade-style content to keep users active as payment rules change and competition increases. That product breadth is a central reason rating agencies say the company has a stronger position than smaller rivals in a market that may consolidate under tighter rules.

Recent launches show the strategy in practice. DigiPlus introduced Bingo Speed, a faster version of livestream bingo built around one- to two-minute rounds, automated card marking and quicker number draws. The product, covered in DigiPlus’ expansion of its livestream bingo suite, reflects an effort to adapt familiar Filipino gaming formats for online audiences while increasing frequency and engagement. The timing was important because the company had reported a weak first quarter, with net income down 33% to 2.8 billion pesos and revenue down 25% to 17.2 billion pesos, citing e-wallet restrictions.

Innovation alone will not remove the policy risk. Pending Senate bills could further restrict online gaming, and some lawmakers have called for an outright ban. Moody’s explicitly said its B1 rating incorporates regulatory tightening but not a full prohibition. That caveat captures the central risk for DigiPlus: Its business model can adjust to tougher payment rules, higher compliance costs and more competition, but a fundamental shift in law would change the investment case.

The stakes for DigiPlus and the sector

DigiPlus is now a test of how a leading online gaming operator can mature under stricter oversight. Its scale gives it advantages in compliance, marketing, product development and cash generation. Those same advantages could widen if smaller operators struggle with regulation and payment disruption. But scale also brings visibility, and visibility brings political scrutiny.

The stable outlooks from S&P and Moody’s suggest the company has enough financial strength to manage the current cycle. They also make clear that the next phase depends on factors partly outside management’s control: the direction of Philippine gambling policy, the pace of user recovery after e-wallet delinking, consumer spending conditions and the ability to convert international expansion into earnings. For investors, creditors and rivals, DigiPlus’ performance will help define whether the regulated Philippine online gaming market remains a growth story or becomes a cautionary example of how quickly policy can reprice an industry.