Casino iGaming expansion pressures DigiPlus margins: Analysts
The expansion of land-based casino operators into the Philippine iGaming market is expected to increase pressure on DigiPlus Interactive Corp.’s profit margins, as competition intensifies and operators spend more to attract and retain players.
According to a report by Manila Bulletin, analysts from Abacus Securities Corp. believe DigiPlus remains the Philippines’ leading iGaming operator but faces a more challenging operating environment as established casino brands strengthen their digital presence.
The shift comes as more integrated resorts (IRs) and casino operators launch or expand their online gaming offerings. Bloomberry Resorts has relaunched its MegaFUNalo platform, while PhilWeb has expanded its technology ecosystem through partnerships with regulated operators including NWR Play of Travellers International Hotel Group, Okada Manila, Hann Casino Resort, NUSTAR Resort and Casino, FBM Philippines and PT Gaming.
However, analysts believe DigiPlus retains key advantages through its larger user base, more established digital ecosystem and stronger customer engagement compared with newer entrants.
Competition adds to existing headwinds
The competitive pressure comes as DigiPlus is already navigating weaker financial performance following regulatory changes affecting online gaming payments.
In the first quarter of 2026, DigiPlus reported a 32.9 percent year-on-year decline in net income attributable to the parent to PHP2.82 billion ($45.9 million), while consolidated revenue fell 25.2 percent to PHP17.24 billion ($281.2 million).
The company attributed the decline primarily to restrictions on payment channels after the removal of in-app access to e-wallets for licensed online gaming platforms, which reduced user convenience and transaction volumes. Weaker consumer spending linked to geopolitical tensions in the Middle East also weighed on results, the company earlier said.
According to Manila Bulletin, Abacus Securities expects DigiPlus’ second-quarter gross gaming revenue to remain broadly in line with trends seen in the fourth quarter of 2025 and the first quarter of 2026. The brokerage estimates second-quarter revenue could decline by around 20 to 25 percent year on year because of a higher comparison base and continued pressure on consumer spending.
Analysts also expect DigiPlus to continue investing heavily in advertising and promotions throughout 2026 as it competes against new casino-backed platforms. Lower Philippine Amusement and Gaming Corp. (PAGCOR) franchise fees resulting from fee harmonisation are expected to partially offset the increase in marketing costs.
Expansion plans under focus
Beyond competition in its core Philippine market, analysts are also monitoring DigiPlus’ expansion strategy.
Abacus Securities views some of the company’s overseas initiatives with caution, noting that planned expansion into Brazil and South Africa has been put on hold. The brokerage also said DigiPlus’ planned entry into the land-based casino business could place additional pressure on profitability during its investment phase.
Earlier this year, DigiPlus entered into a HKD1.60 billion ($204.8 million) convertible note agreement with Hong Kong-listed International Entertainment Corp., which owns the New Coast Hotel Manila and holds a provisional casino licence from PAGCOR. The company has also confirmed it is exploring the acquisition of another Manila Bay hotel as part of plans to develop a $1 billion integrated gaming complex.
DigiPlus is expected to release its financial results for the first half and second quarter of 2026 next week through its regular quarterly disclosure to the Philippine Stock Exchange (PSE).
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